MELI Declines 13% in a Month: Should You Hold or Fold the Stock?

MercadoLibre shares slid 13% over the past month as heavy investments are pressuring margins and weighing on near-term profitability. Nonetheless, growth in cross-border trade and expansion of Mercado Pago signal medium-term revenue and payments upside if investments translate into market-share gains.

Analysis

MercadoLibre shares slid 13% over the past month as heavy investments are pressuring margins and weighing on near-term profitability. Nonetheless, growth in cross-border trade and expansion of Mercado Pago signal medium-term revenue and payments upside if investments translate into market-share gains.