Latin America focused e-commerce and digital financial services technology company Mercado Libre (NASDAQ: MELI) recently ramped up its cryptocurrency portfolio with investments in the 2TM Group, the parent company of MercadoBitcoin.com, and a leading Brazillian regulated blockchain infrastructure platform, Paxos. The investment details have not been disclosed so far.
Mercado Libre’s investments reiterate the company’s commitment to the development and use of crypto assets and blockchain technology in the Latin American region.
While MercadoBitcoin.com is Latin America’s leading digital assets exchange, Paxos is a global leader in the crypto space and the current partner of Mercado Libre in the region. Consequently, the investments further solidify Mercado Libre’s position in the cryptocurrency space.
The Senior Vice-President of Strategy and Corporate Development at Mercado Libre, Andre Chaves, said, “As a leading technology company, we are actively evaluating the various innovations and opportunities around this market as it evolves, aiming to be a core participant in this disruption. digital assets and blockchain technology represent a unique, global and collective phenomenon that breaks barriers and creates a level, open playing field for all users to achieve economic empowerment, which is very aligned with our mission as a company.”
Recently, BTIG analyst Marvin Fong reiterated a Buy rating on the stock. The analyst, however, lowered the price target from $1,930 to $1,550, which implies upside potential of 42% from current levels.
Consensus among analysts is a Strong Buy based on 8 Buys and 1 Hold. The average Mercado Libre price target of $1,855.56 implies upside potential of 70% from current levels. Shares have declined 43.8% over the past year.
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Mercado Libre’s performance this quarter.
According to the tool, the Mercado Libre website recorded a 22.94% monthly decline in global visits in December, compared to the same period last year. Moreover, year-to-date, the website traffic has declined 14.16%, compared to the previous year.
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