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Key Facts on MercadoLibre’s Growth
MercadoLibre (NASDAQ: MELI), a leading e-commerce and fintech platform in Latin America, operates in 18 markets where e-commerce penetration is only 14%, significantly lower than 26% in the U.S. and 31% in China. In Q2, active customers rose by 25% year-over-year, and gross merchandise volume increased by 37% (currency neutral), signifying strong growth potential.
In fintech, MercadoLibre’s digital wallet and MercadoPago app cater to underbanked customers, with nearly $14 billion in assets under management, up 109% from last year. The total credit portfolio increased by 91%, showcasing large growth opportunities in a region largely served by traditional banks.
MercadoLibre’s operating income increased by 14% in Q2, with a 12% margin, and generated $454 million in adjusted free cash flow. The stock is up 38% this year, outperforming the S&P 500’s 12% gain, and currently trades at a forward P/E ratio of 35.
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