Q3 Earnings Alert! Plan early for this week’s stock reports with all key data in 1 placeSee list

AI to redefine traffic funnels, conversions for online marketplaces: Raymond James

Published 09/27/2024, 08:35 AM
© Reuters
MELI
-
ABNB
-
ACVA
-

Investing.com -- Raymond James initiated coverage of MercadoLibre (NASDAQ:MELI) at Outperform and resumed coverage of Airbnb (ABNB) and ACV Auctions (ACVA) at Market Perform in a note Friday, predicting a transformative era for online marketplaces, driven by autonomous robotics and AI technologies.

The firm believes these advancements have the potential to significantly improve traffic funnels and conversion rates and reshape how consumers interact with mobile apps.

The analysts highlight that AI's integration in e-commerce could boost consumer engagement through improved recommendation engines and business AI chatbots.

"Only a 20-basis-point gain equates to a 10% GMV lift," Raymond James noted, reflecting how even small improvements in checkout conversion could have outsized impacts on overall marketplace growth.

In travel, AI-driven digital concierge services are expected to change the landscape, moving key players higher in the booking funnel and potentially reshuffling market share.

"The GenAI impact could reshape the travel bookings flow where digital concierge/agents offer industry constituents," they stated.

Furthermore, the firm believes the mobility sector could experience the sharpest impact, with robotaxis possibly expanding take rates by as much as 3x.

Raymond James said this would allow ride-hailing services to reduce costs significantly, broadening the addressable market.

Food delivery is another area ripe for disruption, with autonomous robots expected to increase take rates, although Raymond James noted that achieving scale economies will be key.

Raymond James initiated coverage on MercadoLibre with an Outperform rating, citing strong growth potential due to investments in fulfillment, AI, and advertising.

However, Airbnb and ACV Auctions were rated at Market Perform, with the analysts citing macroeconomic uncertainty and limited visibility into their AI-driven product roadmaps.

In terms of industry trends, penetration rates remain low in sectors like Latin American retail and U.S. auto markets, suggesting strong growth potential.

The analysts believe that the broader marketplace group, currently trading below historical valuation multiples, has room for expansion as AI becomes more integrated.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.