MercadoLibre Stock Has Been Left For Dead. Here's Why Investors Should Consider Buying More.
The Latin American commerce giant is facing margin pressure, but this is simply due to its long-term thinking.
Overview
The market is soaring, but MercadoLibre (NASDAQ: MELI) is down 30% over the past year. Investors have soured on the Latin American financial technology and e-commerce player because of its aggressive investments, which are eroding profit margins.
It has been left for dead, with shares up only 10% over the last five years, while the broad market S&P 500 index is up close to 100% over the same timeframe. However, it's at this moment that MercadoLibre looks like a fantastic investment for anyone with a time horizon longer than next quarter. Here's why you should consider buying even more of MercadoLibre as the stock inches lower.
Details
MercadoLibre operates in two sectors with some strong overlap: financial technology and e-commerce. In e-commerce, it is building an "everything store" similar to Amazon in Latin American countries, investing in fast delivery, a wide selection, and a bundled subscription offering.
Source
Originally published at www.fool.com.
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