Stock Track | MercadoLibre Plunges 6.31% After-Hours on Q1 Earnings Miss and Profit Decline

Stock Track
May 08

MercadoLibre's stock experienced a significant after-hours plunge of 6.31% following the release of its first-quarter financial results.

The sharp decline was primarily driven by the company's earnings miss, with Q1 EPS of $8.23 falling short of the FactSet consensus estimate of $8.50. Net profit dropped 15.6% year-over-year to $417 million, below analyst expectations, marking the second consecutive quarter of profit decline. The company attributed the lower profits to increased investments in logistics, credit expansion, and its free shipping initiatives aimed at gaining long-term market share.

Adding to the negative sentiment, Scotiabank cut its price target on MercadoLibre to $2,800 from $3,500. Despite the profit concerns, the company reported strong revenue growth of 49% to $8.85 billion, which surpassed analyst projections.

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