net income of e-commerce business an increase of 23% year-on-year, reaching US$1.4 billion, operated by The strength of its market, the expansion of its digital advertising business and 41 million unique buyers in the quarter. Shoppers kept their activity levels on the platform strong, with a significant increase in the number of items per buyer compared to the previous quarter.
For its part, its net income Fintech Mercado Pago grew by 112.5% over the past 365 days to reach US$1.2 billion, surpassing the US$1 billion mark for the first time, With the rebound of financial services in the ecosystem. During the second quarter, Mercado Pago Over 38 million active users, an increase of 26.3%and with growth in all markets of the region, mainly in the services of Users requesting payments, transfers and credits within the platform via QR code.
“We are seeing a strong quarter across all businesses, reflecting continued improvement in profitability with record results in net income and gross profit. As a result of this continued performance, we remain firm in our objective of increasing access to business and financial services.blessed Assurance pedro aartoChief Financial Officer of Mercado Libre.
With regard to the total value of goods traded in the market, in the second quarter it was US $ 8.6 billion, an increase of 21.8%.
What analysts highlight and expect
Augustine Trucco, Vice President of LDT Brokers assessed that “Mercado Libre continued to grow strongly over the past year, even accelerating the sales momentum in previous quarters. The company is valued at about five and a half times its market share in relation to sales, and measured on sales. This is close to the lowest prices in its history.”
Revenue rose 52.5% to $2.6bn from a year earlier and analysts were expecting $2.5bn. Quarterly earnings were $2.43 per share for the quarter ended. In June, 35.34% higher than expected and compared to the same quarter of 2021 77% more”, He added.
It is worth noting that point a excessively low price of the company’s shares in relation to its earningscould represent an asset with great potential because it is undervalued in the market, experts agree.
Maximiliano DonzzelliHead of Research at Invest Online said that “It is worth noting that the company’s fintech segment grew 26% in terms of unique active users, as it did in the global scenario of the economic downturn, and where many of the most important technology companies saw huge increases in active users and average revenue. The decline was reported per user.”
This driver, which refers to the division of the company’s business, can be attributed to the degree of efficiency it has achieved in distinguishing itself from the competition and consolidating its leadership in the fintech sector in the region.
In addition, The Economist indicated that “one cannot fail to mention the rapid rate of growth maintained by the Mercado Pago division, which reached transaction volumes that reached US$30,000 million (record for the company). This represents an increase of about 84 per cent over the corresponding quarter of the previous year.”
In this sense, it is relevant to highlight how the firm has made significant growth in its payments sector, With a customer-based experience that customizes the way to facilitate disbursements made by users in any type of activity.
As far as the stock’s expectations are concerned in the coming days, Lucas Caldi, The leader of Corporate Research at PPI indicated that “We love paper, it is in our recommended portfolio. We see it as a very attractive development asset. However, like all development operations, they are very sensitive to what happens with global interest rates . The 10-year rate fell to 2.70% and this helped such companies. Powell announced that the Federal Reserve has already reached a neutral rate, but if inflation becomes more stable and forces the Fed to remain too restrictive, it will negatively affect the price of paper during the second half. can do
In this sense, MELI quotes could benefit even more if the macroeconomic context begins to operate in a scenario in which US policy moves toward interest rates that remain in line with spurring global growth.