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No. of Recommendations: 87
Hello Fools,

Mercado Libre (MELI) announced earnings after the market closed on November 4. The results were outstanding, showing the business accelerating strongly across segments. They were good enough to make me wonder if the company is worth considering here as a hypergrowth company. Full disclosure: I’ve held shares for years and it has grown to be my largest holding.

The company operates in eighteen nations in Latin America and consists of several distinct but well integrated business areas:
-An online marketplace, Mercado Libre Marketplace, somewhat akin to Amazon or Ebay.
-A logistics and delivery arm, Mercado Envios, somewhat akin to Fedex or UPS.
-A fintech arm, Mercado Pago, a payments and banking platform somewhat akin to PayPal.
-A recently created asset management arm, Mercado Fondo, that already has over $500M under management.

You can read the earnings report at: https://seekingalpha.com/pr/18071697-mercadolibre-inc-report... but here are a few highlights that lead me to think this might be good stock for this group to consider:

Net Revenues of $1,115.7 million, up 148.5% year-over-year on an FX neutral basis
$14.5 billion Total Payment Volume, up 161.2% year-over-year on an FX neutral basis
$5.9 billion Gross Merchandise Volume, up 117.1% year-over-year on an FX neutral basis

In my view the company continues to execute exceptionally well in a challenging area with a massive total addressable market that includes a growing middle class. Their stated goals are to Democratize Commerce and Generate Financial Inclusion. They are succeeding admirably in ways that have wide benefit for both shareholders and customers where they do business. They were recently ranked one of the best companies to work for anywhere in the world. Shares have appreciated ~130% in the past year, but I suspect we may look back a few years from now and think they were still cheap now. Looking forward to kicking the tires with this group.

Regards,

Dorset
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