The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on the bright side, you can make far more than 100% on a really good stock. Long term MercadoLibre, Inc. (NASDAQ:MELI) shareholders would be well aware of this, since the stock is up 244% in five years. It's also up 40% in about a month.
Since it's been a strong week for MercadoLibre shareholders, let's have a look at trend of the longer term fundamentals.
View our latest analysis for MercadoLibre
While MercadoLibre made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.
In the last 5 years MercadoLibre saw its revenue grow at 45% per year. That's well above most pre-profit companies. So it's not entirely surprising that the share price reflected this performance by increasing at a rate of 28% per year, in that time. This suggests the market has well and truly recognized the progress the business has made. To our minds that makes MercadoLibre worth investigating - it may have its best days ahead.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
NasdaqGS:MELI Earnings and Revenue Growth February 1st 2023
We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. So it makes a lot of sense to check out what analysts think MercadoLibre will earn in the future (free profit forecasts).
A Different Perspective
It's nice to see that MercadoLibre shareholders have received a total shareholder return of 9.2% over the last year. However, the TSR over five years, coming in at 28% per year, is even more impressive. Potential buyers might understandably feel they've missed the opportunity, but it's always possible business is still firing on all cylinders. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with MercadoLibre , and understanding them should be part of your investment process.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on the bright side, you can make far more than 100% on a really good stock. Long term MercadoLibre, Inc. (NASDAQ:MELI) shareholders would be well aware of this, since the stock is up 244% in five years. It's also up 40% in about a month.
在任何股票上（假设你不使用杠杆），你最多可能损失的就是100％的资金。但好的一面是，在一只非常好的股票上，你可以赚到远远超过100％的收入。长期 MercadoLibre, Inc. 纳斯达克股票代码：MELI）的股东们会很清楚这一点，因为该股在五年内上涨了244％。它在大约一个月内也上涨了40％。
Since it's been a strong week for MercadoLibre shareholders, let's have a look at trend of the longer term fundamentals.
由于对于MercadoLibre的股东来说，这是强劲的一周，让我们来看看长期基本面的趋势。
View our latest analysis for MercadoLibre
查看我们对 MercadoLibre 的最新分析
While MercadoLibre made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.
In the last 5 years MercadoLibre saw its revenue grow at 45% per year. That's well above most pre-profit companies. So it's not entirely surprising that the share price reflected this performance by increasing at a rate of 28% per year, in that time. This suggests the market has well and truly recognized the progress the business has made. To our minds that makes MercadoLibre worth investigating - it may have its best days ahead.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
公司的收入和收益（随着时间的推移）如下图所示（点击查看确切数字）。
NasdaqGS:MELI Earnings and Revenue Growth February 1st 2023
纳斯达克股票代码：MELI 2023 年 2 月 1 日收益和收入增长
We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. So it makes a lot of sense to check out what analysts think MercadoLibre will earn in the future (free profit forecasts).
It's nice to see that MercadoLibre shareholders have received a total shareholder return of 9.2% over the last year. However, the TSR over five years, coming in at 28% per year, is even more impressive. Potential buyers might understandably feel they've missed the opportunity, but it's always possible business is still firing on all cylinders. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with MercadoLibre , and understanding them should be part of your investment process.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
请注意，本文引用的市场回报反映了目前在美国交易所交易的股票的市场加权平均回报。
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
