Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at MercadoLibre (NASDAQ: MELI) and its peers.
Marketplaces have existed for centuries. Where once it was a main street in a small town or a mall in the suburbs, sellers benefitted from proximity to one another because they could draw customers by offering convenience and selection. Today, a myriad of online marketplaces fulfill that same role, aggregating large customer bases, which attracts commission-paying sellers, generating flywheel scale effects that feed back into further customer acquisition.
The 14 online marketplace stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.7% while next quarter’s revenue guidance was in line.
Luckily, online marketplace stocks have performed well with share prices up 14.6% on average since the latest earnings results.
MercadoLibre (NASDAQ: MELI)
Originally started as an online auction platform, MercadoLibre (NASDAQ: MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.
MercadoLibre reported revenues of $6.79 billion, up 33.8% year on year. This print exceeded analysts’ expectations by 3.9%. Despite the top-line beat, it was still a mixed quarter for the company with impressive growth in its users but a miss of analysts’ EBITDA estimates.
MercadoLibre scored the fastest revenue growth of the whole group. The company reported 70.8 million daily active users, up 25.1% year on year. Unsurprisingly, the stock is up 1.8% since reporting and currently trades at $2,450.
Is now the time to buy MercadoLibre? Access our full analysis of the earnings results here, it’s free.
Best Q2: Shutterstock (NYSE: SSTK)
Originally featuring a library that included many of founder Jon Oringer’s photos, Shutterstock (NYSE: SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content.
Shutterstock reported revenues of $267 million, up 21.3% year on year, outperforming analysts’ expectations by 7.5%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA and paid downloads estimates.
The market seems happy with the results as the stock is up 11.8% since reporting. It currently trades at $22.14.
Is now the time to buy Shutterstock? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: ACV Auctions (NYSE: ACVA)
Founded in 2014, ACV Auctions (NASDAQ: ACVA) is an online auction marketplace for car dealers and wholesalers to buy and sell used cars.
ACV Auctions reported revenues of $193.7 million, up 20.6% year on year, falling short of analysts’ expectations by 1.2%. It was a softer quarter as it posted a significant miss of analysts’ marketplace units estimates and EBITDA guidance for next quarter missing analysts’ expectations.
ACV Auctions delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. The company reported 210,429 units sold, up 12.8% year on year. As expected, the stock is down 22% since the results and currently trades at $10.40.
Read our full analysis of ACV Auctions’s results here.
CarGurus (NASDAQ: CARG)
Bringing transparency to a sometimes opaque process, CarGurus (NASDAQ: CARG) is a digital marketplace where auto dealers can connect with potential customers and where car buyers can browse, purchase, and obtain financing.
CarGurus reported revenues of $234 million, up 7% year on year. This print beat analysts’ expectations by 0.7%. Zooming out, it was a satisfactory quarter as it also produced EBITDA guidance for next quarter exceeding analysts’ expectations but revenue guidance for next quarter missing analysts’ expectations.
The company reported 33,095 users, up 5.6% year on year. The stock is up 18.9% since reporting and currently trades at $37.36.
Read our full, actionable report on CarGurus here, it’s free.
EverQuote (NASDAQ: EVER)
Aiming to simplify a once complicated process, EverQuote (NASDAQ: EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers
EverQuote reported revenues of $156.6 million, up 33.7% year on year. This result was in line with analysts’ expectations. It was a strong quarter as it also produced EBITDA guidance for next quarter exceeding analysts’ expectations.
The stock is down 1% since reporting and currently trades at $25.50.
Read our full, actionable report on EverQuote here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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