Mercado Libre Revenue Surpasses USD 10 Billion, Stock Falls Amidst Market Volatility

Mercado Libre, the leading e-commerce company in Latin America, reported record revenues of USD 10.75 billion in the third quarter, marking the second consecutive quarter surpassing USD 10 billion. However, its stock fell by 12.4% on Wall Street due to earnings below expectations, margin compression from aggressive investments, uncertainty in new businesses, and adverse macroeconomic context. The company's strong growth in sales was offset by net income of USD 448 million, falling short of analysts' projections of USD 473 million. Mercado Libre's stock reaction was particularly sensitive to Brazil's presidential election results, as the country represents its main market.