MercadoLibre Stock Drops 5% Amid Credit Concerns and Strategic Investments
MercadoLibre (MELI) shares fell sharply by 5% to $1,970.73, marking a significant retreat from its recent high of $2,074.48. The decline reflects investor unease over rising credit risks, a new bond issuance, and near-term technical weakness. Trading volume edged slightly above average at 1.17 million shares, with the stock oscillating between $1,957.00 and $2,037.50 during the session.
Despite the selloff, analysts maintain a bullish long-term outlook, citing intact growth fundamentals. The stock remains volatile, trading 5-6% lower for December but well above its 52-week low of $1,646. Key pressure points include margin compression from robotics investments and debt-related headwinds.
Technical indicators now flag MELI as a 'Strong Sell' in the short term, though institutional investors continue to monitor support levels. The after-hours market suggests cautious sentiment will persist into Thursday's opening.
