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Stock impact report

MercadoLibre Inc. (MELI) Positioned for E-commerce Growth Despite Downgrade on Competition Concerns [Yahoo! Finance]

MercadoLibre, Inc. (MELI) 
Last mercadolibre, inc. earnings: 2/10 04:01 pm Check Earnings Report
Company Research Source: Yahoo! Finance
While the investment bank cut its price target to $2,100 from $2,650, it still represents significant upside potential. MercadoLibre Inc. (MELI) Positioned for E-commerce Growth Despite Downgrade on Competition Concerns The downgrade comes amid concerns that the company is facing stiff competition in Brazil and that its margins will remain under pressure as it increasingly invests in growth. While facing competition pressure, the company has signaled its willingness to accept lower margins in the near term as it focuses on long-term growth. MercadoLibre is comfortable with margins of about 9% in the near term as it faces competition from Shopee, which continues to expand its footprint in Brazil. JPMorgan, on its part, expects the company's margins to come in at 8.8%, with earnings before interest and tax falling by about 15%, well below the consensus forecast of a 24% decline. Despite the expected margin contraction, JPMorgan insists MercadoLibre Inc. (NASDAQ:MELI) is still well Show less Read more
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