I have been a big fan of Mercado Libre for quite a while. For about 2 years I’ve been trying to add more of this to my portfolio unfortunately I only have a small stake, although from a very cheap entry point.
Now everyday feels like its becoming even more difficult to buy more. It is a gigantic business model literally trying to be the
amazon + paypal + ebay of south america, and gaining strides every day. So from that point of view even at current price it still has huge upside.
What scares me is the “big boys” especially amazon started looking more seriously into SA, and before this covid madness was aggressively expanding in Brasil.
Also tomorrow right at market opening they have their earnings conference call and I am knee deep into Sept 18 long call options hoping covid shop from home culture will give another jump raise to their earnings and make a few quick bucks.
When this lockdown is over, I think their profits will drop naturally but for about 6-12 months people in SA got more into “buying stuff online” culture, so part of that might stick, and accelerate their growth.