Why the "eBay of Latin America" Is on Fire

Why the "eBay of Latin America" Is on Fire

MercadoLibre is the dominant player is Latin American e-commerce. With second-quarter profits up 18%, and revenue up nearly 40%, the stock is hitting a new 52-week high. While some say the stock's valuation is too rich, analyst Matt Argersinger says it still has a lot of room to run.

By virtually every metric, MercadoLibre's business is on fire. eBay itself has an 18% stake in MercadoLibre, and the two companies view themselves as partners, not competitors. And while today MercadoLibre's market cap is a mere fraction of eBay's, Argersinger believes, in 10 years, it will grow to be half of eBay's market cap.

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The article Why the "eBay of Latin America" Is on Fire originally appeared on Fool.com.

Chris Hill owns shares of eBay. Fool contributor Matthew Argersinger owns shares of MercadoLibre. The Motley Fool recommends eBay and MercadoLibre. The Motley Fool owns shares of eBay and MercadoLibre. 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. The Motley Fool has a disclosure policy.

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Originally published