Thursday, November 3, 2011

Holy Mercadolibre (MELI)

I have not talked about this stock in ages, but Mercadolibre (MELI) is 'en fuego' following its earning report last night - up some 30%.  This is yet another stock that has been struggling for a good portion of the latter part of the year, so with relatively poor relative strength and a chart most people would not touch coming into the day, it was a nice set up for a major surprise.

Even with this tremendous move, the stock is only back to its July highs.  Full report here.


  • Shares of MercadoLibre (MELI) rocketed more than 32% in late-morning trading Thursday after the South American e-commerce and payments provided shattered Wall Street views on an unexpected jump in regional e-commerce transactions.
  • Buenos Aires, Argentina-based MercadoLibre, whose markets include Brazil, Venezuela and Mexico, said late Wednesday that Q3 earnings surged 40% from the year-earlier quarter to 60 cents a share, 40% higher than the 43 cents a share expected by analysts polled by Thomson Reuters. Sales soared 46% to $81.6 million. Analysts had expected $78.5 million.
  • "MercadoLibre had an excellent third quarter, highlighting the importance of solid execution in driving our own results," CEO Marcos Galperin said in a statement. "Recent innovations on our platform combined with secular trends that continue to favor e-commerce in our region, generating strong growth throughout our marketplace, and our entire ecosystem."
  • Gross merchandise volume soared 51.8% from Q3 2010 to $1.35 billion, while total payment volume rose 94.1% year-over-year to $368.5 million. Gross merchandise volume includes the total U.S. dollar value of all transactions completed through the MercadoLibre Marketplace, excluding motor vehicles, vessels, aircraft, real estate and services.
  • The number of items sold on MercadoLibre in Q3 jumped 38.1% to 14.4 million, while total payments transactions through MercadoPago grew 103% to 3.9 million.
  • The company didn't issue an outlook for the current quarter.
[Dec 24, 2009: IBD Mercadolibre- E-Commerce Sales Soar as Latin American Households Get Wired]

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