‘The Next Amazon’: 5 Undervalued Ecommerce Stocks with Huge Upside

4. MercadoLibre, Inc. (NASDAQ: MELI)

Number of Hedge Fund Holders: 69     

MercadoLibre, Inc. (NASDAQ: MELI) is an Argentina-based firm that owns and runs online commerce platforms. It is placed fourth on our list of 10 undervalued ecommerce stocks with huge upside. According to Keyanoush Razavidinani, a business analytics expert, the company is poised to grow as internet penetration and digital payments increase in Latin America. Razavidinani believes the company is ahead of competitors like Amazon and Sea Limited in Latin America because it operates in an ecosystem that it is familiar with, given the political uncertainty in the region and the market share it presently commands. He also underlined how the website of the company was the 10th most visited in Brazil, the largest market in Latin America, behind only social media applications. 

On August 5, investment advisory Credit Suisse maintained an Outperform rating on MercadoLibre, Inc. (NASDAQ: MELI) stock and raised the price target to $2,100 from $2,050, noting that the pandemic tailwinds for the firm were persisting. 

At the end of the first quarter of 2021, 69 hedge funds in the database of Insider Monkey held stakes worth $5.2 billion in MercadoLibre, Inc. (NASDAQ: MELI), down from 79 in the previous quarter worth $8.7 billion.

Baron Funds, in its Q1 2021 investor letter, mentioned MercadoLibre, Inc. (NASDAQ: MELI). Here is what the fund has to say in its letter:

“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.”