Shares of MercadoLibre (NASDAQ: MELI) were moving higher, in line with a broad upswing in tech stocks today. A strong retail sales report and comments from Federal Reserve Chairman Jerome Powell seemed to push the stock higher, as did a better-than-expected earnings report from rival Sea Limited (NYSE: SE), which closed up 14%. MercadoLibre stock closed Tuesday up 6% even though there was no company-specific news out on the Latin American e-commerce specialist.
Businesses involved with selling items online saw massive growth, and consumers were spending much of their newly found financial resources (from stimulus checks and lack of spending on other activities) with various vendors. One stock in particular where this is true is MercadoLibre (NASDAQ: MELI). Investors need to understand some of the risks, but now could be a once-in-a-lifetime buying opportunity for MercadoLibre.
The novelty of online shopping and digital payments has worn off to some degree, but both industries are still growing quickly. Cash accounted for 21% of in-store payment volume in 2020, but that figure will fall to 13% by 2024, according to WorldPay. Similarly, online sales accounted for just 18% of total retail sales in 2020, but that figure will rise to 24% by 2025, according to eMarketer.