From Nasdaq: 2024-11-11 11:22:00

Latin American e-commerce and fintech giant MercadoLibre’s stock declined 11.6% after its Q3 2024 earnings release. Earnings per share were $7.83, missing estimates by 30.52%, but revenues rose 35% to $5.3 billion, surpassing estimates by 1.11%. The company showed strong growth in unique buyers and fintech division, Mercado Pago.

Investors should monitor MercadoLibre’s ability to improve margins while maintaining growth. The company faces competition from Amazon and Walmart in Latin America. Market uncertainties and high inflation are challenges. The stock’s stretched valuation could make it vulnerable to negative developments. Strategic investments in infrastructure and credit services position the company for long-term growth.

Despite the recent stock decline, MercadoLibre’s strategic investments bode well for long-term growth in Latin America. New investors may want to wait for a better entry point due to short-term pressures. The company’s aggressive expansion strategy and ongoing investments could impact profitability metrics. MELI stock carries a Zacks Rank #3 (Hold).

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Amazon.com, Inc. (AMZN) and Walmart Inc. (WMT) provide free stock analysis reports. For more information on MercadoLibre, Inc. (MELI) and the latest article on its Q3 results, visit Zacks.com. Stay updated on market insights and stock analysis from Zacks Investment Research.



Read more at Nasdaq: MercadoLibre Down 11.6% Since Q3 Results: What Should Investors Do?