Business

MercadoLibre's stock soars as sales accelerate and it adds supermarket goods

At Nasdaq, shares of Mercado Libre jumped and reached its highest price ($742.88) since its IPO, which was 13 years ago

Latin America's largest e-commerce platform, Mercado Libre, reported its first quarter results, which made its shares spike at Nasdaq. Photo: Shutterstock
  • In Q1, Mercado Libre reached net Revenues of $652.1 million, up 70.5% year-over-year
  • Company’s TPV (Total Payment Volume) reached $8.1 billion, up 82.2% year-over-year

Argentine Mercado Libre, the largest e-commerce platform in Latin America, saw its shares traded at Nasdaq reach its highest price ($742.88) since its IPO, which was 13 years ago.

For analysts, the company has said, at a conference call that sales in April showed a reaction, after a weak end of March, which encouraged investors. In a press release about the first quarter report, Pedro Arnt, Chief Financial Officer of MercadoLibre commented that given the difficult circumstances the world is facing, the company is optimistic about the results it had delivered during the first quarter.

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According to him, Mercado Libre felt this impact of COVID-19, primarily during the first weeks of the imposed lockdowns, with a rebound throughout April. “We remain committed to doing our part, by empowering our merchants to continue operating and securing deliveries of goods needed by households”, he said.

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The platform has accelerated its sales in a level much higher than those recorded before the pandemic. According to Valor Econômico, the marketplace debuted in April the option ‘supermarkets’. There are about 12,000 items in this segment and more than half are products purchased by the Mercado Libre directly from the industry.

We feel MercadoLibre has the opportunity to emerge from this situation stronger and with an even greater sense of purpose. We trust the dedication and commitment being demonstrated by our entire organization will allow us to continue executing our strategy with no significant interruptions, and in doing so play our part in contributing to making things less difficult to our users during these trying times.

Pedro Arnt, Chief Financial Officer of Mercado Libre

The Buenos Aires-based company’s net revenue reached $652 million in the first quarter, beating analysts’ estimate of $629 million. Gross merchandise and total payment volume jumped 34% and 82% on a yearly basis, respectively. Also, Mercado Libre reported that its unique active users grew 30.9%, reaching 43.2 million.