804 Million More Reasons to Love MercadoLibre
Shares of MercadoLibre (NASDAQ: MELI) have been crushed, falling over 43% from their all-time highs set in September 2021. Inflation and interest rate fears have stoked the broad-based tech stock sell-off, and MercadoLibre has fallen along with it.
But it operates in Latin America, where U.S. inflation is relatively unimportant. The company's fourth-quarter earnings proved that these fears didn't dampen its business success. Despite being worth over $56 billion, the e-commerce and payments giant continued to grow rapidly. Fourth-quarter revenue jumped 60% year over year to $2.1 billion, and the company put up other impressive figures, with $83 million in net income and $392 million in free cash flow for the year.
MercadoLibre has dominated e-commerce and fintech in Latin America for many years, and this continued growth only helped it maintain that lead. Despite this control in the region, however, MercadoLibre still has plenty of room to expand, which is why I think the company could continue to give investors spectacular returns over the next decade.
Source Fool.com
