Another one of my top picks in 2016 and 2017, Mercadolibre is the Amazon.com (sort of) of the Spanish speaking world. There are many ways to look at this company, and depending on which you choose, it looks very different. From a fundamental standpoint, the stock says “Run! Get out now! Head for the hills!” Even given the company’s phenomenal 70.5% yoy quarterly growth rate, it’s trailing P/E of 1,281 is high enough to make any investor do a double take. The other way to look at it is, that like Amazon.com and Alibaba before it, Mercadolibre will continue to grow rapidly until it is the primary online commerce site for its respective share of the world. If that’s the case, the company (and the stock) could easily be worth ten times its current price five years from now.
Chart courtesy of www.stockcharts.com