This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

MercadoLibre's CEO Presents At Deutsche Bank Access 2012 Technology Conference - Transcript

Stocks in this article: MELI

And the key thing about the ecosystem for us, of course, is that anyone who's using any of those pieces we can cross-sell the different pieces of that ecosystem to them. And so as distribution channels, they work very synergistically amongst themselves.

Question-and-Answer Session

Ross Sandler

Great. So I thought we'd start with just a macro given that I think most of the audience here is based or is focused a little more in the US. Can you just give us an update on what the environment is like right now in kind of your core retail business across the various regions? And has the macro environment changed materially in the last call it two or three quarters visa vie where we are today?

Pedro Arnt

So I think -- so there's two relevant I think pieces to look at macro, right? The first one is looking at online commerce and how early days it still is and the tremendous tailwinds that that secular shift from offline retailing to online retailing presents for a company like ours. So, online commerce is still less than 3% of overall retail in the region. The online payment space is extremely nascent. And so we're operating with these tremendous tailwinds that should sustain for quite a long time.

And so whether GDP in the region is growing 4% or is it growing 3%, we're fairly isolated from that. At the margin, obviously it's significant. But we have a business model that, A, is just helped by the overall context of constantly growing online commerce. And additionally, the marketplace has typically proven itself to be much more resilient than traditional retailing even in times of tougher macro. So we've gone through economic crises in Argentina, in Venezuela over the last 12 years, and the marketplace continued to perform relatively better than the overall macro and retail space even those times of tougher economics because consumers typically could start looking for selection in price more intensely when macro conditions are less favorable. So I think that's an important backdrop.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs