What Happened?
Shares of latin American e-commerce and fintech company MercadoLibre (NASDAQ: MELI) jumped 4.1% in the morning session after the company reported strong third quarter results.
MercadoLibre increased its number of users this quarter. In addition, its number of unique active buyers outperformed Wall Street’s estimates, leading to a consolidated revenue beat. On the other hand, its EPS missed due to "strategic investments that increased cost of revenue, sales & marketing and provisions for doubtful accounts as a percentage of revenue. These include lowering our free shipping threshold in Brazil, ramping-up 1P, investing in social commerce and expanding our credits business." Zooming out, we think this was still a solid quarter.
After the initial pop the shares cooled down to $2,418, up 4.9% from previous close.
Is now the time to buy MercadoLibre? Access our full analysis report here.
What Is The Market Telling Us
MercadoLibre’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 6% on the news that investor optimism grew ahead of its upcoming Q3 earnings release, fueled by a new partnership in Brazil and positive momentum in its fintech business. The key drivers for the positive sentiment were recent strategic moves, including a new partnership with retailer Casas Bahia. This development, combined with continued progress in the company's financial technology services, appeared to attract investor attention. The recent share price movement reflected the buzz surrounding these business updates as the company headed into its earnings announcement.
MercadoLibre is up 37% since the beginning of the year, and at $2,418 per share, it is trading close to its 52-week high of $2,614 from June 2025. Investors who bought $1,000 worth of MercadoLibre’s shares 5 years ago would now be looking at an investment worth $1,991.
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