NYSE-Listed Latin American Unicorns See Their Valuations Sink

Bloomberg Línea — Latin American unicorns, those fledgling tech-based companies whose market valuation exceeds $1 billion, have seen a sharp deterioration in their stock prices compared to the highs seen in 2021, when states’ mega-currency issuances created a liquidity window that boosted the prices of companies in this area.

The global interest-rate hikes that began last year, coupled with more restrictive monetary policies affected the valuations of these companies, which are usually nourished by capital that bets on the future.

Bloomberg Línea has analyzed how each of the Latin American unicorns listed on Wall Street has fared in recent months, some of which have seen their share values decline by up to 90%.

Mercado Libre

• The e-commerce giant, which was founded in Argentina, saw its maximum share price on January 21, 2021, of $1,984.34 per share.
• To April 5, 2023, Mercado Libre’s shares were priced at $1,250.05, a 37% drop from their peak.

• However, the shares are enjoying a good 2023, with gains of 48% so far this year.
• The company’s market capitalization is $65.43 billion.

Nubank

• Brazilian fintech Nubank, which has a market capitalization of $21.36 billion, hit its maximum share price on December 10, 2021, with $11.85, a few days after its IPO.
• The neobank’s current share price is 62% lower, at $4.48.

• But so far this year, Nubank shares have climbed 9.82%.

Globant

• Founded by Argentines, Globant offers software services and had a market capitalization of $6.61 billion, making it another of Latin America’s unicorns.
• Globant’s peak share price was $354.44 on November 9, 2021.

• The company’s shares have since dropped by 58%.

dLocal

• The Uruguayan unciron dLocal, offering cross-border payments, has a market capitalization of $3.69 billion.

• The share price is currently $12.49, 82% below its August 24, 2021 peak.

StoneCo

• Another startup that has seen its stock price tumble is Brazilian unicorn StoneCo, which offers financial technology solutions to companies and made its debut on the NYSE in October 2018, with a share price above $31.
• StoneCo’s market capitalization is $3.80 billion.

• However, the company’s shares have fallen 90% compared to their peak of February 17, 2021, and currently trade at $8.97.

PagSeguro

• Brazilian startup PagSeguro launched in 2006 and made its debut on Wall Street in late January 2018, and currently has a market capitalization of $2.51 billion.
• PagSeguro hit their peak of $61.92 on February 11, 2021, and currently trade at $7.68, an 88% drop from their peak level.

• PagSeguro shares are not having a good 2023 either, with the shares having slumped 12% so far.

VTEX

• VTEX, specialized in cloud commerce, is another Brazilian startup listed on the NYSE. Its market capitalization is now below $1 billion, the barrier that affords companies unicorn status.

• The company’s shares hit their peak of $32.25 on August 9, 2021, and currently trade at $3.60, an 89% drop.

Despegar.com

• Despegar.com sells tickets and travel packages across Latin America, and was founded in Argentina. The company once had a market capitalization of over $1 billion, but it currently stands at $386 million.
• The company’s shares currently trade at $5.42, but in October 2017 were priced at $33.94, which represents a drop of 84%.
• Unlike the rest of the aforementioned startups, Despegar.com’s stock did not reach its ceiling due to post-pandemic liquidity, but during the time when Mauricio Macri was president of Argentina and the travel market was brimming with positive expectations.