Positive outcome for MELI with +5.18% gain facilitated by trader robot
AI-powered trading robots have been gaining popularity, and one such example is the "Trend Trader: Popular Stocks (TA&FA)" bot factory. These AI trading robots have recently demonstrated their prowess by generating a remarkable +5.18% gain while trading MELI (MercadoLibre) over the course of the previous week. In this article, we will delve into the recent earning results of MELI and explore how these AI trading bots could influence its future trajectory.
Analyzing Earnings Results:
MELI, a leading e-commerce and fintech company in Latin America, recently reported its earnings for the quarter ending May 03. The company's earnings per share (EPS) came in at $3.97, surpassing the estimated value of $2.81. This positive surprise in earnings indicates that MELI has been performing better than expected, potentially reflecting its strong market position and growth prospects.
Market Capitalization and Shares Outstanding:
With 482.96K shares outstanding, MELI currently boasts a market capitalization of approximately $57.93 billion. The market capitalization represents the total value of a company's outstanding shares and is a crucial metric for investors to assess its size and worth in the market. MELI's significant market capitalization underscores its status as a prominent player in the e-commerce and fintech sectors, garnering attention from investors and analysts alike.
Technical Analysis and Future Outlook:
When considering MELI's price movements, technical analysis can provide valuable insights. Currently, the stock price of MELI seems to be hovering near its lower Bollinger Band. However, historical data suggests that in 28 out of 30 instances where MELI's price broke its lower Bollinger Band, the price subsequently rose further in the following month. This statistical pattern indicates that there is a 90% probability of a continued upward trend for MELI in the near term. The recent performance of AI trading bots, specifically those utilized by the "Trend Trader: Popular Stocks (TA&FA)" bot factory, has showcased their ability to generate impressive gains while trading MELI stock. Moreover, MELI's positive earnings results, surpassing the estimated EPS, highlight its strong market position and growth potential.
MELI in downward trend: price may decline as a result of having broken its higher Bollinger Band on August 31, 2023
MELI broke above its upper Bollinger Band on August 31, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 43 similar instances where the stock broke above the upper band. In of the 43 cases the stock fell afterwards. This puts the odds of success at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for MELI moved out of overbought territory on September 08, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on September 18, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on MELI as a result. In of 97 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for MELI turned negative on September 18, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MELI declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
MELI moved above its 50-day moving average on August 25, 2023 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MELI advanced for three days, in of 360 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 301 cases where MELI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MELI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (29.851) is normal, around the industry mean (17.294). P/E Ratio (90.090) is within average values for comparable stocks, (73.557). Projected Growth (PEG Ratio) (1.109) is also within normal values, averaging (2.326). Dividend Yield (0.000) settles around the average of (0.038) among similar stocks. P/S Ratio (5.721) is also within normal values, averaging (9.424).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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Industry description
Market Cap
High and low price notable news
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a providesr of internet trading services
Industry InternetRetail
MELI and
Correlation & Price change
A.I.dvisor indicates that over the last year, MELI has been loosely correlated with CVNA. These tickers have moved in lockstep 52% of the time. This A.I.-generated data suggests there is some statistical probability that if MELI jumps, then CVNA could also see price increases.
| Ticker / NAME | Correlation To MELI | 1D Price Change % | ||
|---|---|---|---|---|
| MELI | 100% | -1.21% | ||
| CVNA - MELI | 52% Loosely correlated | -7.98% | ||
| JMIA - MELI | 49% Loosely correlated | -6.95% | ||
| AMZN - MELI | 49% Loosely correlated | -1.70% | ||
| GLBE - MELI | 48% Loosely correlated | +2.14% | ||
| CPNG - MELI | 46% Loosely correlated | -1.01% | ||
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