In This Article:
Shares of MercadoLibre (NASDAQ: MELI) rose as much as 12.5% on Friday morning, boosted by a great earnings report. By 12:15 p.m. ET today, the Argentine e-commerce giant's stock had cooled down slightly to a 9.4% gain.
MercadoLibre's great Q4 numbers
Fourth-quarter revenue rose 37% year over year to $6.06 billion. The company's constant-currency sales soared 96%, backing out the effects of Argentina's ongoing inflation crisis.
Adjusted earnings nearly quadrupled from the year-ago period, landing at $12.61 per share. Your average Wall Street analyst would have settled for earnings near $8.05 per share on revenue of approximately $5.79 billion.
The company saw strong sales growth in every reportable segment and market, led by a currency-adjusted tripling of consolidated sales in Argentina and a 106% increase in the third-party marketplace known as its commerce segment.
Stellar results despite an economic crisis
MercadoLibre's stock is exploring fresh all-time highs again, breaking through a stubborn resistance around $2,100 per share. There's nothing special about that price, other than the psychological impact of a nice, round number. Now it's sniffing at the equally pleasing $2,300 level instead.
The stock trades at a lofty 61 times updated earnings, but it has earned that rich valuation with stellar growth despite an economic crisis in its domestic market. I can't wait to see how MercadoLibre's e-commerce platform will perform when the Argentine economy gets back on its feet.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
-
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $363,307!*
-
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $46,607!*
-
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $552,526!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of February 3, 2025
Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MercadoLibre. The Motley Fool has a disclosure policy.
Why MercadoLibre Stock Jumped on Friday was originally published by The Motley Fool