|Bid||561.00 x 1000|
|Ask||570.73 x 900|
|Day's range||566.71 - 591.65|
|52-week range||257.52 - 698.98|
|Beta (5Y Monthly)||1.61|
|PE ratio (TTM)||N/A|
|Earnings date||24 Feb 2020 - 28 Feb 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||647.85|
(Bloomberg) -- Goldman Sachs Group Inc. agreed to lend $125 million to Mercado Credito, the bank’s third loan to a Latin American fintech this year and the biggest ever in Mexico.The borrower, a unit of MercadoLibre Inc., plans to use the money to triple in about one year its $100 million working-capital portfolio provided to small and midsize companies in Mexico, Martin de los Santos, a senior vice president, said in a phone interview.The goal is to “democratize financial services,” by lending to firms that don’t have access to other financing, he said.MercadoLibre dominates Latin American e-commerce with an almost 25% market share and 40 million unique monthly visitors, Julie Chariell, a senior analyst at Bloomberg Intelligence, said in a November report. It’s based in Argentina, but almost two-thirds of its $603 million in third-quarter net revenue came from Brazil, according to the company’s financial statements. Its market value more than doubled this year to $29 billion.The Mercado Credito unit was launched in 2016 to provide credit to clients of its parent company and to customers using its online payment platform, MercadoPago, in Brazil, Argentina and Mexico. The company, which develops proprietary credit-risk models, has granted more than $610 million in working-capital credit lines to more than 270,000 companies in Latin America. It also offered around $200 million in consumer loans.The Goldman loan won’t be used to finance lending in Brazil, where Mercado Credito raised 245 million reais ($58 million) from investors including Inter-American Development Bank, or in Argentina, where the firm finances itself in the capital markets, Santos said. Before the Goldman deal, Mercado Credito was using its own capital to finance loans to firms in Mexico.“We wanted not only Goldman’s capital but also the experience the bank has on this type of transactions throughout Latin American,” Santos said. “I hope to work with the bank in the future to finance other portfolios, including consumer operations in Mexico and other markets.”Latin American retail e-commerce is expected to increase 13% to 16% annually over the next five years, with penetration at just 2.4% of total retail sales in the region, Chariell said in a June report.Mercado Credito has a unique way of getting capital flowing to businesses that have traditionally lacked access to financing, according to Santiago Rubin, a managing director at Goldman Sachs who’s head of technology, media and telecommunications for Latin America.But higher delinquency rates are a concern for analysts. “Credit quality deteriorated significantly in Brazil,” analysts at Banco Itau BBA SA said in a Nov. 1 report that pinned part of the blame on consumer credit and lending to merchants that use mobile-card acceptance machines.Santos said he is not preoccupied. The lending portfolio to consumers in Brazil is less than 8% of the total, and brand new, having started only 9 months ago, he said.The Goldman deal follows a $750 million investment by PayPal Holdings Inc. and $100 million by Dragoneer Investment Group that were part of an $1.85 billion equity offering Mercado Libre did earlier this year.Goldman’s loan is being done through the New York-based company’s structured finance, investment and lending business, headed by Ram Sundaram, the same one that in August provided a secured credit facility of as much as $100 million to Mexican fintech Konfio Ltd. Also this year, the special-situations group agreed to provide Mexico’s Credijusto Inc. with a $100 million facility.The bank’s special-situations group also did a loan to Brazilian credit-card lender Nu Pagamentos SA, widely known as Nubank. The loan was of 200 million reais in 2016, and in August 2017 was expanded to 455 million reais in a deal with Fortress Investment Group. The entire loan has been repaid.“We look forward to keep supporting MercadoLibre across the region as their lending footprint grows,” Sundaram, who also oversees the emerging markets and commodities business at Goldman Sachs, said in a statement.\--With assistance from Felipe Marques and Vinícius Andrade.To contact the reporter on this story: Cristiane Lucchesi in Sao Paulo at email@example.comTo contact the editors responsible for this story: Michael J. Moore at firstname.lastname@example.org, Steve Dickson, Dan ReichlFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Yaniv Sarig, President and CEO of Mohawk Group Holdings, Inc. By Yaniv Sarig For any retail executive, a simple glance at sales trend reports can cause massive handwringing about the state of the retail industry. And for sure, there is reason for some of this doom-and-gloom. On the surface, the statistics can be daunting. In […]
MercadoLibre's (MELI) third-quarter results benefit from solid total payment volume growth and strong momentum across all the regions. However, increasing expenses remain a woe.
MercadoLibre (MELI) delivered earnings and revenue surprises of -9800.00% and -0.31%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Investing.com - MercadoLibre (NASDAQ:MELI) reported third quarter earnings that missed analysts' expectations on Thursday and revenue that topped forecasts.
PayPal's (PYPL) third-quarter results reflect an uptick in net new active accounts, strengthening customer engagement on its platform and portfolio strength.
MercadoLibre (MELI) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
PayPal (PYPL) third-quarter 2019 results are anticipated to reflect portfolio strength. However, losses from investments in MercadoLibre and Uber have weighed on the results.
(Bloomberg) -- MercadoLibre Inc. will “for sure” invest more than 3 billion reais ($718 million) in Brazil next year with a focus on financial services and logistics, Chief Operating Officer Stelleo Tolda said.MercadoLibre, the e-commerce pioneer in Latin America now worth $28 billion, plans to invest more in its financial services and payments unit while opening more distribution centers and seeking partnerships to cut delivery time further, Tolda said in an interview at Bloomberg’s Sao Paulo office.The early guidance on outlays for next year follows investments of 2 billion reais in Brazil last year and 3 billion reais this year. As competition heats up from the likes of Amazon.com Inc. and local retailers including Magazine Luiza SA and B2W Cia Digital, MercadoLibre is defending its market share of about 33% and looking to get customers to lean heavier on its services for day-to-day shopping and payment solutions, Tolda said.“We strongly believe in the growth potential of this business, so it’s too early to focus only on profitability,” said Tolda, who met MercadoLibre’s founder Marcos Galperin at Stanford University in the late 90‘s and has been leading the Brazil business since the start, 20 years ago.MercadoLibre, based in Buenos Aires but with operations in 18 countries and shares trading in New York, is offering same-day delivery in Sao Paulo and looking to expand its next-day delivery to at least 16 cities in 2020.The firm currently operates two distribution centers near Sao Paulo and will open facilities in other regions, to speed up its delivery in a country larger than the continental U.S.Brazilian e-commerce has more than doubled to 68.8 billion reais between 2013 and 2018 and should almost double again through 2023, according to market researcher Euromonitor International.The newest focus for the company is on the fast-moving train of fintech services courting large parts of the population without bank accounts.MercadoPago, the payments platform, has been leading growth at the company. The number of transactions more than doubled year-on-year in the second quarter with the value surging 47% to $6.5 billion. That compares to $3.4 billion in gross merchandise value from the marketplace.“We see opportunities not only in payments, but also in all financial services, including credit, investments and eventually insurance,” Tolda said. “MercadoPago is also the way through which we believe we’ll have higher recurrence in people’s lives.”MercadoLibre needs to invest in marketing for the MercadoPago brand and search out companies to provide payment solutions and individual customers to use the virtual wallet. Offering payment with cards as well as with QR codes, MercadoPago has already cut deals with a wide variety of brick-and-mortar companies in Brazil such as gas stations, drugstores and the Sao Paulo subway.MercadoLibre doesn’t plan to spin off the financial products unit, which it sees as a way to increase interactivity with customers and attract shoppers into its e-commerce platform, Tolda said. Currently, the average Brazilian e-commerce consumer buys an item per month and MercadoLibre wants to intensify the frequency of purchases to at least once a week, Tolda said.The company recently opened new categories of no-gender fashion and sustainable products in its e-commerce platform to attract younger consumers. It also plans to expand next-day delivery to 16 larger cities, from eight currently, after closing a deal with the cargo unit of airline Azul SA that could help reduce its dependence on the country’s post offices.MercadoLibre has surged 93% year-to-date to $566 on the Nasdaq. That compares to 18% for Amazon, 28% for Alibaba Group Holding and 39% for EBay Inc.After raising $1.9 billion earlier this year, including a big chunk of it from PayPal Holdings Inc., MercadoLibre is focusing on investment in its core businesses rather than any bold new acquisitions, according to Tolda. Talks are ongoing with PayPal on how to collaborate in several areas despite being competitors.“Theirs is a traditional online payment model, and we’re seeing even greater potential offline than online,” with MercadoPago, Tolda said. “It’s an interesting path, this idea of ‘frenemy,’ that exists in the technology market.”To contact the reporters on this story: Fabiola Moura in Sao Paulo at email@example.com;Vinícius Andrade in São Paulo at firstname.lastname@example.orgTo contact the editors responsible for this story: Daniel Cancel at email@example.com, ;Nick Turner at firstname.lastname@example.org, Richard RichtmyerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- The Libra Association hasn’t officially launched but has already lost a quarter of its membership, as Booking Holdings Inc., an online travel company that operates websites including Kayak.com and Priceline.com, joined Visa Inc., Mastercard Inc. and four other companies in leaving the controversial cryptocurrency project spearheaded by Facebook Inc.With the departure of Norwalk, Connecticut-based Booking, the Libra Association now has 21 founding members remaining of the original 28 companies that signed on to the association in June. PayPal Holdings Inc., Stripe Inc., MercadoLibre Inc. and EBay Inc. in the past two weeks have also said they would abandon the project.The remaining members of the Libra Association, a nonprofit that would manage the cryptocurrency, planned to meet Monday in Geneva, Switzerland to finalize its governing charter and initial membership.Libra came under intense scrutiny from lawmakers and regulators as soon as Facebook announced the project. Regulators warned that the cryptocurrency, originally set to launch next year, could be used by criminals if not properly monitored, while lawmakers pilloried Facebook’s track record at hearings in July with Libra co-founder David Marcus.Officials in some countries, including Germany and France, announced that they would ban Libra, saying that the currency could be a threat to monetary policy, among other concerns.Visa, Mastercard and Stripe left the project shortly after receiving a letter from Democratic senators Brian Schatz of Hawaii and Sherrod Brown of Ohio, warning that they could face increased scrutiny if they stayed on board.Brian Armstrong, the CEO of Libra-member Coinbase Inc., on Sunday said the pressure felt “un-American.” “Why the need for the intimidation tactics? This would be called anti-competitive/monopolistic behavior if any private company did it,” Armstrong wrote on Twitter.In the face of the departures, Libra has said more than 1,500 companies have expressed interest in joining the association and that the currency wouldn’t launch until it satisfied regulators’ concerns.Developers have continued to advance the open-source code that would underlie Libra. However, Visa, Mastercard and PayPal could have provided critical experience in navigating U.S. financial regulators’ concerns, making their departures particularly painful. Booking Holdings, which has a market capitalization of more than $84 billion, was among the only remaining large, publicly held companies left in the project.Facebook Chief Executive Officer Mark Zuckerberg plans to testify next week at the House Financial Services Committee on Libra, among other topics.Representatives for the Libra Association didn’t immediately respond to a request for comment.\--With assistance from Kurt Wagner.To contact the reporters on this story: Joe Light in Washington at email@example.com;Olivia Carville in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Sara Forden at email@example.com, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Marcos Eduardo Galperín became the CEO of MercadoLibre, Inc. (NASDAQ:MELI) in 1999. This report will, first, examine...
(Bloomberg) -- PayPal Holdings Inc. will report a $228 million loss on investments before taxes in the third quarter, driven in large part by a bad bet on Uber Technologies Inc. just before it went public.The San Jose, California-based payments company said the investment in Uber, for $500 million at the initial public offering price, had declined 34%. Another investment, in Latin American online retailer MercadoLibre Inc., had declined 10%, PayPal said.PayPal’s stake in the world’s largest ride-hailing business was tied to what the companies described as a closer collaboration on payments technology. Uber is the most prominent app to use PayPal’s nascent Pay With Venmo feature. But Uber’s stock has under-performed due to a combination of slowing growth and accelerated losses.A PayPal spokeswoman said the company’s guidance doesn’t incorporate expectations for stock price performance of their investments during the quarter given the “inherent difficulty” in predicting market fluctuations. PayPal said its investments have still generated unrealized gains for the company this year, due to better performance in earlier quarters.Following the report, Mark Palmer, an analyst at BTIG, said he now expects earnings per share of 54 cents for the third quarter, down from an earlier projection of 69 cents. PayPal reports earnings on Oct. 23. The stock was up less than 1% to $99.93 at 11:22 a.m. in New York.(Updates with shares in last paragraph. A previous version of this story was corrected to show company has unrealized gains on investments not revenue.)To contact the reporter on this story: Julie Verhage in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Mark Milian at email@example.com, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Amazon.com Inc.’s cloud division plans to build a regional data center in a free-trade zone in Argentina, according to people familiar with the matter.The Seattle-based company is preparing to invest about $800 million in the project over 10 years and will reap considerable tax benefits by locating the data center in the Bahia Blanca-Coronel Rosales districts of the province of Buenos Aires, said the people, who asked not to be identified because they’re not authorized to speak publicly.Amazon’s decision to put part of its cloud infrastructure in South America’s second-largest economy is a big win for the Argentine government, which is keen to diversify the economy into digital services, nanotechnology, aerospace and more. Earlier this year, the national congress unanimously passed a law creating incentives for tech companies to set up shop there -- a major achievement in an election year that has polarized society.Amazon, like any company benefiting from the new Knowledge Economy Law, will receive export tax breaks, an income tax reduction from 35% to 15% and will effectively pay lower labor costs. Moreover, by locating in the free-trade zone, Amazon will pay no national or provincial taxes on energy consumption, a generous benefit for a data center.Amazon, through a spokeswoman, declined to comment. The Argentina project isn’t final and could still be changed, one of the people said.Amazon Web Services, the company’s most profitable business, has been expanding its infrastructure around the globe to maintain an edge on rivals like Microsoft Corp. and Alphabet Inc.’s Google. Sales of cloud-computing services and software are expected to total $214.3 billion in 2019, up 17.5% from a year earlier, according to Gartner.Proximity to an Amazon data center helps companies reduce costs and improve data speeds compared with having to rely on sites outside the country. Argentina is home to several online outfits, including its largest company, e-commerce retailer MercadoLibre Inc., which uses AWS to host its platforms.\--With assistance from Matt Day.To contact the reporters on this story: Jorgelina do Rosario in Buenos Aires at firstname.lastname@example.org;Spencer Soper in Seattle at email@example.comTo contact the editors responsible for this story: Carolina Millan at firstname.lastname@example.org, Robin AjelloFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
MercadoLibre (MELI) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.