Cantor Fitzgerald’s Top Internet Stocks: Best Stocks To Buy According To $13.2 Billion Firm

9. MercadoLibre, Inc. (NASDAQ:MELI)

Number of Hedge Fund Holders In Q2 2024: 84

Share Price Target Upside: 18%

Cantor’s Rating: Overweight

Cantor’s Share Price Target: $2,530

MercadoLibre, Inc. (NASDAQ:MELI) is one of the fastest growing eCommerce companies in Latin America, which makes it unsurprising that Cantor has also rated the shares as Overweight. Unlike the developed world, and particularly the US, where economic growth is slow, Latin America is one of the fastest growing regions in the world. This provides MercadoLibre, Inc. (NASDAQ:MELI) with a considerable market at its disposal, as evidenced by the Latin American eCommerce market’s 3.1x growth between 2019 to 2023. Additionally, the firm has managed to differentiate itself well in its industry through a world leading 80% delivery rate for packages within two days of orders. This is a key metric in the eCommerce industry, and it results from MercadoLibre, Inc. (NASDAQ:MELI)’s proprietary business and operational model. Not taking rest, it is also targeting tertiary revenue streams, by introducing a digital payments platform to increase its revenue and ensure that buyers do not leave the MercadoLibre, Inc. (NASDAQ:MELI) platform for any portion of their purchase journey.

Harding Loevner mentioned MercadoLibre, Inc. (NASDAQ:MELI) in its Q1 2024 investor letter. Here is what the firm said:

“MercadoLibre and FEMSA have built valuable businesses for themselves in payments, ones that also address a pressing need for many customers of their retail businesses. There is still much work to do in promoting financial inclusion in Latin America compared to many other emerging markets (see chart above). That also means there is a continuing opportunity for MercadoLibre, FEMSA, and other companies to lower financial barriers for customers while at the same time differentiating themselves from their competitors and boosting their own businesses.”