As investors seek tech opportunities beyond the renowned “Magnificent Seven,” MercadoLibre, the Argentinian e-commerce and payments powerhouse, has caught the attention of Wall Street analysts. The company, which trades on Nasdaq and is incorporated in Delaware, has seen its stock soar by 34% in 2024, outpacing Amazon’s 27% rise and the S&P 500’s 20% gain.
Founded 25 years ago by CEO Marcos Galperin during the dot-com boom, MercadoLibre has established itself as a leader in online sales across South America. It commands roughly half of the online retail market in Brazil, Argentina, Mexico, and Chile. Additionally, the company operates Mercado Pago, a robust digital payments platform that further enhances its market position.
According to FactSet, approximately 90% of analysts covering MercadoLibre rate it a “buy,” with an average price target of $2,268—representing about an 8% upside from its recent trading levels. Notably, there are no sell ratings for the stock, underscoring a strong consensus among financial experts.
Brad Gerstner, founder of Altimeter Capital, is among the bullish voices in the market. He pointed to expanding profit margins and the company’s potential in artificial intelligence as key factors driving his enthusiasm for MercadoLibre. “You look at companies like MercadoLibre… many that people have forgotten as investors flocked to the Magnificent Seven,” Gerstner stated during a recent CNBC interview. He believes that several internet companies, including MercadoLibre, will benefit from AI advancements, leading to margin expansion and customer acquisition.
Galperin’s journey to founding MercadoLibre began during his time as a student at Stanford Graduate School of Business. At a time when venture capital was predominantly focused on Silicon Valley, he struggled to find funding for his innovative idea. “There was no venture capital for Latin America… even if you were an entrepreneur based in New York, the investors were all on Sand Hill Road,” he reflected.
The investment landscape in Latin America has shifted dramatically since MercadoLibre’s inception. In 2023, venture-backed companies in the region secured $3.3 billion across nearly 1,000 deals, a significant increase from the $16.3 billion peak in 2021, according to PitchBook.
With strong performance metrics and a favorable market outlook, MercadoLibre is not only solidifying its dominance in South America but also emerging as a compelling investment opportunity amid the evolving tech landscape. As the company continues to innovate, its potential for growth remains high, making it a standout choice for investors looking beyond traditional tech giants.
