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

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 higher today making it today's featured internet winner. The industry as a whole closed the day up 0.2%. By the end of trading, Mercadolibre rose $2.16 (1.9%) to $115.78 on average volume. Throughout the day, 782,150 shares of Mercadolibre exchanged hands as compared to its average daily volume of 568,300 shares. The stock ranged in a price between $114.77-$117.61 after having opened the day at $116.17 as compared to the previous trading day's close of $113.62. Other companies within the Internet industry that increased today were: Mediabistro ( MBIS), up 60.7%, Friendfinder Networks ( FFN), up 6.6%, LookSmart ( LOOK), up 6.2% and Yelp ( YELP), up 4.4%.
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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 $5.0 billion and is part of the technology sector. The company has a P/E ratio of 50.7, above the S&P 500 P/E ratio of 17.7. Shares are up 45.1% year to date as of the close of trading on Tuesday. Currently there are 2 analysts that rate Mercadolibre a buy, 1 analyst rates it a sell, and 4 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 negative front, Vipshop Holdings Ltd ADR ( VIPS), down 12.1%, MeetMe ( MEET), down 5.2%, Limelight Networks ( LLNW), down 4.6% and Innodata ( INOD), down 3.7% , were all laggards within the internet industry with Equinix ( EQIX) being today's internet industry laggard.

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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