SEA & MercadoLibre in LatAm

For anyone following the battleground progress in LatAm between these 2 eCommerce & Fintech players SEA and MercadoLibre, there’s a new article with up to date progression data and head to head comparisons…

https://seekingalpha.com/article/4449377-mercadolibre-and-se…

MercadoLibre is under geographic risk threat but reaching positive contribution in core eCommerce with a fully fledged Fintech business at scale to lean on, SEA has multiple geographic presence but a negative contribution margin in eCommerce, (although improving) and has cash flow dependency subsidising operations from its gaming side.

It’s interesting reading though nothing too conclusive that makes me want to select one over the other so I will continue to hold both as fundamental high growth (triple digit), strong tail wind eCommerce/ Fintech plays in 2 fast growing emerging market regions that will be tapping trillion $ TAMs in the future…

https://seekingalpha.com/article/4448847-mercadolibre-stock-…

Ant

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It’s interesting reading though nothing too conclusive that makes me want to select one over the other so I will continue to hold both as fundamental high growth (triple digit), strong tail wind eCommerce/ Fintech plays in 2 fast growing emerging market regions that will be tapping trillion $ TAMs in the future… – Ant

Yep. There can be more than one “platform” winner (not a Highlander “there can be only one” sort of thing), especially in a case like this where we have multiple ways to meet customer needs with different geographic concentrations. I own AMZN, SHOP, MELI, GLBE and SE. Theoretically, competitors… and they ARE competitors to varying degrees… but they all have their own advantages and, importantly, they are all doing very well. I see owning all of them to be worthwhile. SE is the largest in my portfolio at 15.9%, AMZN the smallest at 0.4% (kept as a “souvenir” position from a prior larger one). Overall, the total “platform” allocation for us is 28.1%. (Collectively, they are a #2 position).

Rob
Rule Breaker Home Fool & STMP/MTH Maintenance Coverage Fool
He is no fool who gives what he cannot keep to gain what he cannot lose.

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