The company's already massive size means it will have a harder time delivering relative growth compared to smaller players in the space, but Amazon stands out as a dependable industry leader that offers an attractive risk-reward dynamic for growth investors.
Although it might seem ubiquitous, at 15% of retail sales the United States, which has 90% internet penetration, is still in the early stages of e-commerce.MercadoLibre stands to gain from increased internet penetration leading to further adoption of e-commerce and continues to grow unique active users at a rapid clip, reporting a 92% increase in the third quarter.
It's not often you find companies with two highly scalable businesses, but that's what MercadoLibre has with its e-commerce marketplace and digital payment solutionsAdditionally, with MercadoLibre you have multi-decade growth drivers as internet penetration will boost e-commerce and the number of underbanked and unbanked citizens will boost demand for its digital payments solutions
Perhaps it's time to call MercadoLibre the "Amazon and PayPal of Latin America."