Valuation of the Free Market has come to pass Vale’s market value in the midst of the great valuation in the pandemic.
The Latin American e-commerce giant Mercado Livre (Free Market) has registered a huge valuation in its shares since the beginning of the coronavirus pandemic in March 2020, rising 185% in the US Nasdaq stock market.
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The company’s CEO, Marcos Galperin, responded to a Twitter user last Sunday (10) giving his opinion about Bitcoin Evolution and its use as a value reserve. He also remembered the unfortunate scenes that took place at the US Capitol last week:
„I think BTC as a value reserve is better than gold. But it won’t replace the legal tender currencies because of the cost of energy needed to process your transfers (quantum computing can change that). Now, in a world where Vikings invade the Capitol…“
The valorization makes the Free Market one of the most valuable companies in the Central and South American continents, with valuation jumping from US$ 27 billion to US$ 77 billion in the last 10 months. The value per share went from US$ 550 to US$ 1,700.
In addition, the Free Market has surpassed the market value of Brazilian giants such as Petrobras and Vale, momentarily figuring as the most valuable company in the region.
Competing with global e-commerce giants such as Amazon and Alibaba, the Mercado Livre intends to expand its operations after investing R$ 10 billion to reduce its dependence on the post office. In the last 3 years, shipments by traditional postal services have decreased 80%.
As part of its expansion, e-commerce also intends to start selling fresh food and even compete in the niche of restaurant delivery with companies like Rappi and iFood, which have also grown significantly amid the pandemic in the region.
From January to September 2020, the number of Free Market users doubled, reaching 112.5 million, and the sales volume was US$ 14 billion, a growth of 42% over the previous period.
Stelleo Tolda, co-founder of the company, told InfoMoney that the changes of the pandemic accelerated in two years the company’s growth estimates. With this, the participation of the Free Market on the Brazilian retail has climbed to 10%:
„This is a movement that came to stay. Looking to other markets the number is close to 20%. In China, where the e-commerce has more penetration, it is on 25%“.
In addition, the mass banking also helped another product of the company, the Paid Market. There were 7 million new accounts opened to receive the emergency aid. Túlio Oliveira, vice-president of Mercado Pago, recognizes the problems of the Brazilian population:
„There are many unbanked and underbanked in Brazil. We have a long term vision and we always believe in this thesis that technology would change people’s lives. This same logic we extend to financial services“.
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„Bitcoin is better than gold“
Despite not adopting payments in cryptomedas, the Free Market seems to follow cryptomarket closely.
In fact, the debate between Bitcoin and gold should continue during the year 2021, since in 2020 cryptomoeda surpassed the traditional precious metal and broke its correlation with other traditional assets and stock indices.
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With technology and retail giants like PayPal adopting cryptomoedas, it now remains to be seen whether the doors will be opened in other companies like the Mercado Libre, which maintains its headquarters in Argentina.