This E-Commerce Company Has a Better 5-Year Return Than Amazon And Walmart

Amazon.com, Inc. AMZN is the biggest e-commerce company and the fifth most valuable company in the world with a market capitalization of $1.8 trillion. Shares of the company have turned in an impressive 374% return over the last five years for shareholders.

There is a lesser-known e-commerce company that has outpaced the returns of Amazon and Walmart Inc WMT. 

About MercadoLibre: Latin American e-commerce company MercadoLibre Inc MELI operates in 18 countries including Argentina, Brazil, Mexico, Colombia, Chile, Venezuela, Peru and others. The company’s three largest markets are Argentina, Brazil and Mexico. MercadoLibre, which went public in 2007, is valued at $82 billion.

The leader in Latin American e-commerce targets the 635 million people who live in the region. The company had more than 132 million active users at the end of fiscal 2020.

MercadoLibre is expected to account for around 25% of all e-commerce sales in Latin America at the end of 2021.

Financials: MercadoLibre had revenue of $4 billion in fiscal 2020, up 73% year-over-year. Fiscal 2020 saw the company process a total payment volume of $1.9 billion and a gross merchandise value of $20.9 billion.

First-quarter revenue of $1.4 billion was up 158% year-over-year for the company. TPV hit $14.7 billion, up 129% year-over-year and GMV hit $6.1 billion, up 114% year-over-year.

The company’s three largest markets saw growth of 90% or more in each of Brazil, Argentina and Mexico.

The strong growth of MercadoLibre has propelled shares to a 972% return over the last five years, outpacing Amazon and Walmart.

Related Link: Expert Ratings For Mercado Libre 

What’s Next: MercadoLibre could see a boost in the future from a partnership announced with BigCommerce Holdings Inc BIGC. The partnership will give BigCommerce merchants the ability to sell to the Latin American market using MercadoLibre’s marketplace.

Signed as the first partnership with a North American e-commerce platform, the move is seen as boosting MercadoLibre’s expansion into the U.S.

The strong growth of MercadoLibre has propelled shares to a 972% return over the last five years and up nearly 2,000% over the last 10 years, outpacing Amazon and Walmart.
And, the company shows no signs of slowing down, as it could have more room to run on the increased penetration of the e-commerce market of Latin America.

Amazon, Walmart: Shares of Amazon are up 374% in the last five years and up over 1,500% in the last 10 years.

Amazon saw growth in its e-commerce business during the pandemic. The company continues to see large growth from its AWS business. Amazon reported second-quarter growth of 27% year-over-year to $113.1 billion.

AWS segment revenue of $14.8 billion was up 37% year-over-year and comes with higher operating margins for the company.

Walmart shares are up 95% over the last five years and up 170% over the last ten years. The leading U.S. physical retailer has posted steady revenue gains and also invested heavily in e-commerce growth and expanding outside the U.S.