MercadoLibre (MELI) Stock Rises After Strong Q4 Revenue Beat
MercadoLibre reported a robust fourth-quarter performance, with revenue surging 45% year-over-year to $8.76 billion, surpassing Wall Street estimates by approximately $300 million. The Latin American e-commerce giant saw gross merchandise volume grow 37%, driven by strong performances in Mexico (49% growth) and Brazil (46% growth). Despite the revenue beat, earnings per share of $11.03 fell short of the $11.43 consensus, attributed to heavy investments in AI tools and advertising platform technology.
The company's MELI+ subscription service is gaining traction, now bundling popular streaming platforms like Disney+, Netflix, HBO Max, and Apple TV+. Market reaction was mixed: after an initial 5% drop post-earnings, shares closed 3% higher on Tuesday and gained another 4.29% during the day, showcasing investor confidence in the company's long-term growth strategy despite short-term margin pressures.
