Devalued unicorns: how many Argentine companies are still worth more than US$1 billion

In the midst of a strong global liquidity crisis that is causing budget adjustments and massive layoffs, there are less than ten Argentine companies listed on Wall Street with a market valuation of more than US$1 billion.

Thus, companies like Despegar.com, which knew how to become “unicorns” –firms with valuations above US$1 billion– have had to part with that label in recent times, at least on paper.

The reduction of payrolls and the cuts in expenses in general are currently going through the business world, hit directly and indirectly by the rate hikes of the central banks, added to the prospects of recession in 2023. Thus, in recent years, they have been left behind some of the Argentine companies with market caps greater than US$1 billion.

ARGENTINE COMPANIES ON WALL STREET, BY MARKET CAP

Currently, the list of 17 Argentine companies with ADRs (American Depositary Receipts) in the United States is led by the Latin American electronic commerce giant, Mercado Libre (MELI), with a valuation of US$44.355 billion as of December 6, according to data from Bloomberg.

The firm continues to reap the rewards of the investments made in recent years, reporting not only revenue in the third quarter, but also a record operating result, with growth in its net profitability.

However, Marcos Galperin’s firm has also been suffering in stock market terms. It went from having a market cap close to US$100 billion in January 2021 to one of less than US$50 billion today, amid a massive sale of technology shares.

THE SECOND MOST VALUABLE ARGENTINE COMPANY IN THE US

Then there is the Nasdaq-listed technology solutions firm Globant (GLOB), with a market cap of US$7.504 billion, which recently announced the acquisition of an Australian digital commerce consultancy. After that firm is the oil company YPF, with US$3.042 billion.

Meanwhile, there is Telecom (TEO), with a valuation of US$1.964 billion, and Pampa Energía (PAM), with US$1.472 billion.

Companies such as Transportadora de Gas del Sur (TGS) are also positioned in this category, with US$2.88 billion, and Grupo Financiero Galicia (GGAL), with US$1.175 billion.

WHO LEFT THE LIST OF “UNICORNS” LISTED IN THE US?

Some of the companies that operate on Wall Street and, in the face of various events, ceased to be “unicorns” are Despegar, which had that category until 2021; and Edenor.

Meanwhile, IRSA, Loma Negra and Supervielle have also lost that status in recent years.

With information from Bloomberg Línea