Mercadolibre Inc. (MELI): Today's Featured Internet Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Mercadolibre ( MELI) pushed the Internet industry lower today making it today's featured Internet laggard. The industry as a whole closed the day down 0.8%. By the end of trading, Mercadolibre fell $4.19 (-3.5%) to $114.62 on average volume. Throughout the day, 522,735 shares of Mercadolibre exchanged hands as compared to its average daily volume of 570,300 shares. The stock ranged in price between $114.47-$118.25 after having opened the day at $117.77 as compared to the previous trading day's close of $118.81. Other companies within the Internet industry that declined today were: LiveDeal ( LIVE), down 10.0%, ChinaNet Online Holdings ( CNET), down 8.3%, MeetMe ( MEET), down 8.0% and Deltathree ( DDDC), down 6.8%.
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MercadoLibre, Inc. hosts online commerce platforms in Latin America. Its services are designed to provide users with mechanisms for buying, selling, paying, collecting, generating leads, and comparing listings through e-commerce transactions. Mercadolibre has a market cap of $5.2 billion and is part of the technology sector. The company has a P/E ratio of 52.5, above the S&P 500 P/E ratio of 17.7. Shares are up 50.3% year to date as of the close of trading on Thursday. Currently there are 3 analysts that rate Mercadolibre a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates Mercadolibre as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, LookSmart ( LOOK), down 7.3%, Bankrate ( RATE), down 6.5%, Points International ( PCOM), down 3.4% and Renren ( RENN), down 2.9% , were all gainers within the internet industry with Groupon ( GRPN) being today's featured internet industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the internet industry could consider First Trust Dow Jones Internet Idx ( FDN) while those bearish on the internet industry could consider ProShares Ultra Short Technology ( REW).

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