Mercadolibre Inc is listed as MELI ticker in NASDAQ exchange. The company is also known as Mercado Livre and is an Argentine company. Mercadolibre has its headquarters in Uruguay, incorporated in U.S. The company operates in E-commerce and online auctions. The company was founded in the year 1999. Mercadolibre was founded by Marcis Galperin. It serves in 18 countries across the world. The current CEO of the company is Marcos Eduardo Galperin.
Mercadolibre’s current market cap is 63.087B USD. The company does not pay any dividend to its shareholders still the investors are ready to pay higher prices for the stock. As the share follows a PE ratio of 85.80. The PE ratio of a stock often indicates how much price investors are willing to pay for the share.
The MELI share has a Beta of 1.49 and beta value more than 1 indicates that the share price is more volatile than the market as a whole. This further means that the MELI share moves more than the market as a whole. The company has 44.552M shares floating in the market.
The company has reported a revenue of $3.42B in Q2 2023 which is 35% higher as compared to the last year. The MELI has an average trading volume of half a million and the debt/equity ratio of the company is 245.47%. This makes the company a good candidate for the long term reliability.
MercadoLibre Inc. Stock Performance Analysis
Mercadolibre Inc has resulted in a consistent advance in revenue and profit margin of the company. This indicates that the business of the company is consistently growing. Despite of growth in revenue, one negative factor can be seen as the advance in debt every year. But with this advance in debt the company has managed to advance its free cash flow. Also the current ratio of the company is 1.28. This indicates that the company is capable enough to repay its debt.
Price Targets for MELI Stock
The analysts are bullish on the stock following a maximum upside target of $2180.00 for MELI stock. The aimed target is 73.10% above the CMP and has an average price of $1638.47. The current share price of MELI is trading even below its average price.
MELI Stock Technical Analysis
MELI share is currently trading inside a rising wedge pattern. It is currently making bearish candlesticks pattern following a downtrend in the short-term. The price is moving towards the lower band of the wedge. This price behaviour indicates sellers dominance.
The EMA’s for the MELI share are following a golden cross. The following EMA has led the price of the stock to higher level. Based upon the current scenario the share is declining from higher levels. MELI stock price has declined below the 50-day EMA. If the share price breaks below the 200-day EMA, the trend may change to bearish for the stock.
The RSI of the share is also trading below the 50-level. Value of the RSI has also declined below the 14-day SMA line. This behvior of RSI for MELI share indicates weakness on charts.
Conclusion
Mercadolibre has very good fundamentals following strong and growing finances. The company seems to be reliable in the long run. Despite of the strong fundamentals, the share seems to be in a downtrend. The EMA and the RSI are indicating weakness on the charts.
Therefore, if the share price breaks below the rising wedge pattern following a decline below the 200-day EMA. We might get to see a downtrend and fast decline in price to the further lower levels.
Technical Levels
- Support levels for the MELI share are – $818.00 and $1058.00
- Resistance levels for the MELI share are – $1456.00 and $1715.00
Disclaimer
The information provided in this article, including the views and opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/10/03/how-mercadolibre-share-will-react-on-redemption-of-notes/