Read on Twitter#Ecommerce
Overall #Ecommerce sales will reach $ 116B by 2023
Here is a company that has many DETRACTORS
Here is an EASY thread
$MELI Mercado Libre was founded in 1999 by Marcos Galperin (current CEO) 
https://abs.twimg.com/emoji/v2/... draggable="false" alt="👤" title="Silhouette einer Büste" aria-label="Emoji: Silhouette einer Büste">
It operates an online marketplace and auctions in 18 countries in LATAMhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🌎" title="Amerika auf dem Globus" aria-label="Emoji: Amerika auf dem Globus">
$MELI also offers shipping solutionshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🚚" title="Lieferwagen" aria-label="Emoji: Lieferwagen"> for marketplace users, digital payments https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏦" title="Bank" aria-label="Emoji: Bank"> and advertising solutions https://abs.twimg.com/emoji/v2/... draggable="false" alt="📣" title="Anfeuerungsmegafon" aria-label="Emoji: Anfeuerungsmegafon">
It operates an online marketplace and auctions in 18 countries in LATAM
$MELI also offers shipping solutions
Looking good? Well there is much more https://abs.twimg.com/emoji/v2/... draggable="false" alt="👀" title="Augen" aria-label="Emoji: Augen">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🛍" title="Einkaufstaschen" aria-label="Emoji: Einkaufstaschen"> Mercado Libre - Marketplace
https://abs.twimg.com/emoji/v2/... draggable="false" alt="💻" title="Computer" aria-label="Emoji: Computer"> Mercado Shops - Online storefronts / website builder for sellers
https://abs.twimg.com/emoji/v2/... draggable="false" alt="📣" title="Anfeuerungsmegafon" aria-label="Emoji: Anfeuerungsmegafon"> Mercado Libre Publicidad - Advertising
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏠" title="Haus" aria-label="Emoji: Haus"> Mercado Classificados - Real Estate and automotive
Sellers pay commissions on their sales
The 52m users (45% growth YoY) can buy whatever they want
Items sold reached 179m - growing 101% YoY https://abs.twimg.com/emoji/v2/... draggable="false" alt="📦" title="Paket" aria-label="Emoji: Paket"> All of this is supplied by the more than 11m sellers https://abs.twimg.com/emoji/v2/... draggable="false" alt="🛒" title="Shopping cart" aria-label="Emoji: Shopping cart">
GMV reached $ 5B during Q2 ’20https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend"> An increase of 102% on FX neutral basis (49% in USD terms)
GMV reached $ 5B during Q2 ’20
Sounds like huge numbers https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤯" title="Explodierender Kopf" aria-label="Emoji: Explodierender Kopf"> Well, there are two sides of the same coin https://abs.twimg.com/emoji/v2/... draggable="false" alt="🎭" title="Darstellende Künste" aria-label="Emoji: Darstellende Künste">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend">Users (45% users growth) are buying more items that are more expensive resulting in 102% GMV growth - In LOCAL CURRENCY
https://abs.twimg.com/emoji/v2/... draggable="false" alt="📉" title="Tabelle mit Abwärtstrend" aria-label="Emoji: Tabelle mit Abwärtstrend"> When translated to USD dollars the YoY GMV growth shrinks to 49%
More on the FX and political risk at the end of this thread
How does $MELI compares to competition https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤺" title="Person fencing" aria-label="Emoji: Person fencing"> Let’s look at key regions https://abs.twimg.com/emoji/v2/... draggable="false" alt="🌎" title="Amerika auf dem Globus" aria-label="Emoji: Amerika auf dem Globus">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="📌" title="Reißzwecke" aria-label="Emoji: Reißzwecke"> Numbers are in million visits / month
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇧🇷" title="Flagge von Brasilien" aria-label="Emoji: Flagge von Brasilien"> $MELI 260 > Americanas 116 > OLX 106
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇦🇷" title="Flagge von Argentinien" aria-label="Emoji: Flagge von Argentinien"> $MELI 30 > Fravega 7.8 > OLX 3
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇲🇽" title="Flagge von Mexiko" aria-label="Emoji: Flagge von Mexiko"> $MELI 117 > $AMZN 52 > Coppel 25
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇨🇴" title="Flagge von Kolumbien" aria-label="Emoji: Flagge von Kolumbien"> $MELI 44 > Falabella 9.6 > OLX 6.8
$MELI leads ALL OF LATAM https://abs.twimg.com/emoji/v2/... draggable="false" alt="👑" title="Krone" aria-label="Emoji: Krone"> Let’s have a look at the TAM https://abs.twimg.com/emoji/v2/... draggable="false" alt="👥" title="Silhouette von Büsten" aria-label="Emoji: Silhouette von Büsten">
#Ecommerce in LATAM is set to reach $116B by 2023https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend"> Coming from $ 70b in 2019
The COVID pandemic brought 11m new users onlinehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="💻" title="Computer" aria-label="Emoji: Computer"> Totalling 192m digital buyers (around 34% of full potential)
#Ecommerce in LATAM is set to reach $116B by 2023
The COVID pandemic brought 11m new users online
Small share of online buyers https://abs.twimg.com/emoji/v2/... draggable="false" alt="🛍" title="Einkaufstaschen" aria-label="Emoji: Einkaufstaschen"> and low internet penetration https://abs.twimg.com/emoji/v2/... draggable="false" alt="🌐" title="Weltkugel mit Längengraden" aria-label="Emoji: Weltkugel mit Längengraden"> represent a huge opportunity
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> In LATAM #Ecommerce retail sales as percentage of total sales stands at 4.7% in 2020 https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤏" title="Kneifende Hand" aria-label="Emoji: Kneifende Hand">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="ℹ️" title="Informationsquelle" aria-label="Emoji: Informationsquelle"> For comparison, this number stands at 16.1% the USA and Europe (coming from 12% pre-COVID)
Leaving plenty of room for growth
So here we have “THE” #Ecommerce leader of LATAM https://abs.twimg.com/emoji/v2/... draggable="false" alt="🌎" title="Amerika auf dem Globus" aria-label="Emoji: Amerika auf dem Globus">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> The only problem identified so far is the currency risk https://abs.twimg.com/emoji/v2/... draggable="false" alt="💲" title="Fettes Dollarzeichen" aria-label="Emoji: Fettes Dollarzeichen">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚫" title=""Betreten verboten!"-Zeichen" aria-label="Emoji: "Betreten verboten!"-Zeichen"> In the background of course, we can hear some chatter about the weak infrastructure https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚚" title="Lieferwagen" aria-label="Emoji: Lieferwagen"> and payment systems https://abs.twimg.com/emoji/v2/... draggable="false" alt="💳" title="Kreditkarte" aria-label="Emoji: Kreditkarte"> in LATAM
When confronted to a roadblock https://abs.twimg.com/emoji/v2/... draggable="false" alt="⛔️" title="Nicht betreten" aria-label="Emoji: Nicht betreten"> leaders innovate https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏋️" title="Person lifting weights" aria-label="Emoji: Person lifting weights"> and laggards complain https://abs.twimg.com/emoji/v2/... draggable="false" alt="🥴" title="Woozy face" aria-label="Emoji: Woozy face">
Through acquisitions, partnerships and in-house initiatives $MELI has created its ownhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚚" title="Lieferwagen" aria-label="Emoji: Lieferwagen"> Logistic Solution (shipped 127m items in Q2 ’20 - A 124% YoY INCREASE)
Through acquisitions, partnerships and in-house initiatives $MELI has created its own
We will NOT focus on these business areas here https://abs.twimg.com/emoji/v2/... draggable="false" alt="📌" title="Reißzwecke" aria-label="Emoji: Reißzwecke">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="‼️" title="Doppeltes Ausrufezeichen" aria-label="Emoji: Doppeltes Ausrufezeichen"> Next WEDNESDAY, we cover Mercado Envios https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚚" title="Lieferwagen" aria-label="Emoji: Lieferwagen"> Mercado Credito https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏦" title="Bank" aria-label="Emoji: Bank"> Mercado Shops https://abs.twimg.com/emoji/v2/... draggable="false" alt="💻" title="Computer" aria-label="Emoji: Computer"> Mercado Pago https://abs.twimg.com/emoji/v2/... draggable="false" alt="💳" title="Kreditkarte" aria-label="Emoji: Kreditkarte">
A look at $MELI financials
https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend"> Sales of $ 878m in Q2 ’20 - growing 61% YoY with GMs of 49% (stable)
https://abs.twimg.com/emoji/v2/... draggable="false" alt="💵" title="Banknote mit Dollar-Zeichen" aria-label="Emoji: Banknote mit Dollar-Zeichen"> Op. Inc. of $ 89m - Coming from $ 7.3m in prev. Year
https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack"> Cur. Assets of $ 4.8B vs. Cur. Liab. of $ 2.7B & LT debt of $779m
https://abs.twimg.com/emoji/v2/... draggable="false" alt="💸" title="Geld mit Flügeln" aria-label="Emoji: Geld mit Flügeln"> Ops. CF of $ 650m vs. $ 28m in prev. Year
On the https://abs.twimg.com/emoji/v2/... draggable="false" alt="💲" title="Fettes Dollarzeichen" aria-label="Emoji: Fettes Dollarzeichen">Currency risk, this is a hard nut to crack https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤯" title="Explodierender Kopf" aria-label="Emoji: Explodierender Kopf">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="📉" title="Tabelle mit Abwärtstrend" aria-label="Emoji: Tabelle mit Abwärtstrend"> It is happened before that the Argentine Peso fell 15% on a surprise political result
https://edition.cnn.com/2019/08/12/investing/argentina-peso/index.html
No">https://edition.cnn.com/2019/08/1... one can tell it won’t happen againhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="‼️" title="Doppeltes Ausrufezeichen" aria-label="Emoji: Doppeltes Ausrufezeichen"> Always better to know the risks than to ignore them
https://edition.cnn.com/2019/08/12/investing/argentina-peso/index.html
No">https://edition.cnn.com/2019/08/1... one can tell it won’t happen again
On the https://abs.twimg.com/emoji/v2/... draggable="false" alt="🌎" title="Amerika auf dem Globus" aria-label="Emoji: Amerika auf dem Globus"> Geopolitical situation, we can try to predict what this means for #Ecommerce
https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend"> Whatever happens #Ecommerce is benefiting from secular tailwinds in LATAM that are hard to stop
Just look at what happened with COVID https://abs.twimg.com/emoji/v2/... draggable="false" alt="🦠" title="Microbe" aria-label="Emoji: Microbe"> #Ecommerce exploded, a quick look at these graphs shows how $MELI went VERTICAL https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Rakete" aria-label="Emoji: Rakete"> https://www.marketplacepulse.com/stats/mercadolibre">https://www.marketplacepulse.com/stats/mer...
GDP is set to grow at modest pace for most LATAM countries
https://abs.twimg.com/emoji/v2/... draggable="false" alt="📌" title="Reißzwecke" aria-label="Emoji: Reißzwecke"> Proj. GDP Growth 2021 in LATAM
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇧🇷" title="Flagge von Brasilien" aria-label="Emoji: Flagge von Brasilien"> 2.5% in base case scenario / 1.5% in down scenario
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇦🇷" title="Flagge von Argentinien" aria-label="Emoji: Flagge von Argentinien"> 1.5% in base case scenario / 1% in down scenario
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇲🇽" title="Flagge von Mexiko" aria-label="Emoji: Flagge von Mexiko"> 1.5% in base case scenario / 1% in down scenario
NEXT Wednesday for a deep dive into Mercado Pago https://abs.twimg.com/emoji/v2/... draggable="false" alt="💳" title="Kreditkarte" aria-label="Emoji: Kreditkarte"> Mercado Envios https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚚" title="Lieferwagen" aria-label="Emoji: Lieferwagen"> & more!
https://abs.twimg.com/emoji/v2/... draggable="false" alt="‼️" title="Doppeltes Ausrufezeichen" aria-label="Emoji: Doppeltes Ausrufezeichen"> Please note that this is not a recommendation to buy - You are responsible for conducting your own research https://abs.twimg.com/emoji/v2/... draggable="false" alt="‼️" title="Doppeltes Ausrufezeichen" aria-label="Emoji: Doppeltes Ausrufezeichen">
Do not miss anything https://abs.twimg.com/emoji/v2/... draggable="false" alt="✍️" title="Schreibende Hand" aria-label="Emoji: Schreibende Hand"> Stay in the loop https://abs.twimg.com/emoji/v2/... draggable="false" alt="📩" title="Umschlag mit nach unten zeigendem Pfeil darüber" aria-label="Emoji: Umschlag mit nach unten zeigendem Pfeil darüber">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> For more content, follow us on Twitter
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Want to get UNDER HYPED companies delivered straight to your inbox? Subscribe now! https://getbenchmark.substack.com"> https://getbenchmark.substack.com
Disclaimer - This is not investment advice in any form and investors are responsible for conducting their own research before investing.
Sources
✑ Investor presentation
✑ Company website
✑ SimilarWeb
Sources
✑ Investor presentation
✑ Company website
✑ SimilarWeb
✑ eMarketer
✑ MarketPlacePulse
✑ SPGlobal
✑ Labsnews
✑ MarketPlacePulse
✑ SPGlobal
✑ Labsnews
