Prediction: MercadoLibre Stock Could Soar in the Next 5 Years if This Happens
Improving profitability could be a game changer for the South American e-commerce and fintech giant.
Overview
MercadoLibre (NASDAQ: MELI) has prospered by transforming e-commerce, fintech, and logistics within Latin America. Investors have bid its stock price dramatically higher since its 2007 debut, as the company brought online shopping, digital financial transactions, and improved logistics to the region.
Nonetheless, the market has punished MercadoLibre stock over the past year, and it now trades at a 30% discount to its 52-week high. Investors appeared to sour on the stock because its profit growth was not matching its robust revenue increases. While getting the earnings trajectory back on track will be a challenge, if it can increase its profit growth rate over the next five years, the stock price will likely soar.
Image source: The Motley Fool.
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Originally published at www.fool.com.