Better Connectivity in Latin America Leads To Strong Sales Growth For MercadoLibre (MELI)

MercadoLibre (NASDAQ: MELI), the largest e-commerce site in Latin America, where it has platforms in 12 countries, witnessed high revenue growth in the last 2 years. Sales have soared from $85 million in 2007, the year it went public, to $137 million last year.

Analysts peg 2009 sales at $180 million, says Galperin, who started the firm in 1999. The adoption of the Internet in Latin America is behind that of the U.S. and other developed countries, according to Craig-Hallum analyst Mark Argento. He added that MercadoLibre is in the high-growth phase of their business because the Latin American market is somewhat behind. The region's Internet penetration, Galperin adds, has climbed to 30% from 3% in 1999.