MercadoLibre Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Latin American eBay (NAS: EBAY) equivalent MercadoLibre (NAS: MELI) look like a winning bid today, rising as much as 10.7% on heavy volume. The biggest spike in volume and price came in early morning action.
So what: Though we're in the thick of another earnings season here, MercadoLibre doesn't announce results for another week and a half. But yesterday was the company's Investor Day, and investors clearly liked what they heard there.
Now what: The event didn't really present anything new, but reinforced MercadoLibre's market-leading position in the suddenly red-hot markets south of the Rio Grande. The enthusiasm here makes me wonder if Netflix (NAS: NFLX) didn't pick exactly the right moment to fill out the Americas with streaming video services -- something we'll hear more about on Monday. As for MercadoLibre itself, the stock looks inexpensive after falling nearly 50% in six months, and shareholders can use every available scrap of good news.
Interested in more information about MercadoLibre? Add it toMy Watchlist.
At the time this article was published Fool contributor Anders Bylund owns shares of Netflix but holds no other position in any of the companies discussed here. Motley Fool newsletter services have recommended buying shares of eBay, Mercadolibre, and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. You can check out Anders' holdings and a concise bio, follow him on Twitter or Google+, or peruse our Foolish disclosure policy.
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