In this article, we will be looking at the 5 best digital money stocks to invest in. To see our detailed analysis of the digital payments sector, you can go directly to the 10 Best Digital Money Stocks to Invest In.
5. MercadoLibre, Inc. (NASDAQ: MELI)
Number of Hedge Fund Holders: 69
MercadoLibre, Inc. (NASDAQ: MELI) is an operator of online commerce platforms in Latin America and owns Mercado Libre Marketplace, an automated online commerce platform alongside Mercado Pago FinTech, a fintech solutions platform. The company ranks 5th on our list of the best digital money stocks to invest in.
Morgan Stanley is bullish on MercadoLibre, Inc. (NASDAQ: MELI) with an Overweight rating and a $2,260 price target, versus the Street’s $1,902.29 price target. This May, MercadoLibre, Inc. (NASDAQ: MELI) also announced its purchase of $7.8 million worth of bitcoin to be added to its balance sheet.
This June, Citigroup also raised its price target on MercadoLibre, Inc. (NASDAQ: MELI) to $2,250 with a Buy rating. Stifel has a Buy rating on the stock with a $1,800 price target, while Credit Suisse has an Outperform rating on the stock, as of this May. In the first quarter of 2021, MercadoLibre, Inc. (NASDAQ: MELI) had an EPS of -$0.63, missing estimates by -$0.64. The company’s revenue was $1.38 billion, up 111.39% year over year, and beating estimates by $215.14 million. The company has a gross profit margin of 49.22% and the stock has gained 55.62% in the past year.
As of the end of the first quarter of 2021, 69 hedge funds out of the 866 tracked by Insider Monkey held stakes in MercadoLibre, Inc. (NASDAQ: MELI), worth roughly $5.22 billion. This is compared to 79 hedge funds in the previous quarter, with a total stake value of about $8.76 billion.
Baron Funds, an asset management firm, mentioned MercadoLibre, Inc. (NASDAQ: MELI) in its first-quarter 2021 investor letter. Here’s what they said:
“MercadoLibre, Inc., a Latin American e-commerce and FinTech platform, declined in the quarter despite reporting very strong fourth quarter results. MercadoLibre falls into a category of businesses that were net beneficiaries of last year’s lockdowns and reduced consumer gatherings that fell out of favor this quarter as investors looked toward economic reopening and normalization. We are confident in MercadoLibre’s ability to create substantial long-term value as it grows into a regional powerhouse across e-commerce and financial services.”