Investing.com Update on MercadoLibre, Airbnb, and ACV Auctions

Raymond James has initiated coverage of MercadoLibre (NASDAQ:MELI) with an Outperform rating. They resumed coverage of Airbnb (ABNB) and ACV Auctions (ACVA) at Market Perform in a note released Friday.

The firm anticipates a transformative era for online marketplaces, driven by advancements in autonomous robotics and AI technologies. They believe these innovations can significantly enhance traffic funnels and conversion rates, thereby reshaping consumer engagement in mobile apps.

The analysts emphasized that AI’s integration in e-commerce could enhance consumer interactions through improved recommendation engines and AI chatbots. They noted that even a minimal 20-basis-point increase could lead to a 10% lift in Gross Merchandise Volume (GMV), highlighting the substantial impact of small improvements in checkout conversions on overall marketplace growth.

In the travel sector, AI-driven digital concierge services are expected to redefine booking processes, potentially altering market share among key industry players. Raymond James stated, “The GenAI impact could reshape the travel bookings flow where digital concierge/agents offer industry constituents.”

The mobility sector may see the most significant changes, with robotaxis projected to triple their take rates, allowing ride-hailing services to reduce costs dramatically and expand their addressable market. In food delivery, autonomous robots are expected to enhance take rates as well, although achieving economies of scale will be crucial.

Raymond James initiated their coverage on MercadoLibre due to its strong growth potential backed by investments in fulfillment, AI, and advertising. Conversely, Airbnb and ACV Auctions are rated as Market Perform due to macroeconomic uncertainty and unclear AI-driven product roadmaps.

Lastly, industry penetration rates in sectors like Latin American retail and U.S. auto markets remain low, indicating significant growth potential. The analysts believe that the broader marketplace group, now trading below historical valuation multiples, has room for expansion as AI becomes increasingly integrated into these markets.