I took my first good, hard look at Mercadolibre for a November story about online retail. I was soon convinced not only that I was looking at a phenomenon, but that I was looking at one still in a relatively early stage of its development. Mercadolibre, which is playing to become the Amazon.com (AMZN) or Alibaba (BABA) of Latin America, has a market cap of $7.6 billion, which is not tiny, but based on market cap, Alibaba is 31 times as big, while Amzon.com is 48 times as big. My call was a reasonably good one, by the way. Since the November article, MELI shares have gone from $158 to $171.
Technically, MELI shares weren’t up 100% in 2016, only about 60%, but the share price did double over the course of the year if one measures from February trough to October peak. An excuse, yes, but given the growth potential here, any excuse is a good one.
Chart courtesy of www.stockcharts.com