AI Set to Transform Traffic Funnels and Conversions for Online Marketplaces: Raymond James

Raymond James has begun coverage of MercadoLibre with an Outperform rating while resuming coverage of Airbnb and ACV Auctions with a Market Perform rating. In their recent report, the firm anticipates a transformative period for online marketplaces, driven by advancements in autonomous robotics and AI technologies.

The analysts assert that these innovations have the potential to enhance traffic funnels and conversion rates significantly, ultimately changing how consumers engage with mobile applications. They emphasize that the integration of AI in e-commerce could enhance consumer interactions through improved recommendation systems and AI-powered chatbots.

Raymond James noted, “Only a 20-basis-point gain equates to a 10% GMV lift,” highlighting that even minor improvements in checkout conversion can lead to substantial overall marketplace growth. In the travel sector, AI-driven digital concierge services are expected to redefine the landscape, positioning key players higher in the booking funnel and potentially shifting market shares significantly.

They stated, “The GenAI impact could reshape the travel bookings flow where digital concierge/agents serve various industry constituents.” Additionally, the firm believes the mobility sector could see the most significant changes, with the expansion of robotaxis potentially tripling take rates.

Raymond James noted that such advancements could allow ride-hailing services to significantly reduce costs, widening their market opportunities. The food delivery sector is also anticipated to undergo disruption, as autonomous robots may boost take rates, though achieving economies of scale will be essential.

In initiating coverage on MercadoLibre with an Outperform rating, Raymond James cited strong growth prospects stemming from investments in fulfillment, AI, and advertising. Conversely, Airbnb and ACV Auctions were assigned Market Perform ratings due to macroeconomic uncertainty and limited insight into their AI-driven product roadmaps.

Overall, the analysts point out that penetration rates in sectors like Latin American retail and the U.S. auto markets remain low, indicating significant growth potential. They believe the broader marketplace group, which is currently trading below historical valuation multiples, has ample opportunity for expansion as AI becomes more integrated into various services.