MercadoLibre (MELI) reported second-quarter results before the market open Monday that widely exceeded Wall Street estimates. But MercadoLibre stock slipped on the news.
XThe Argentina-based e-commerce company reported adjusted earnings of 1.11 per share on revenue of $878.4 million. Wall Street expected earnings of 10 cents on revenue of $757.4 million.
MercadoLibre stock initially dropped 8% but recovered some of that ground. It closed at 1,134.21 , down 5.8% on the stock market today. Shares hit a record high last week.
MercadoLibre is one of the largest providers of e-commerce services in Latin America, operating in 18 countries. The company's largest markets are Brazil, Argentina and Mexico, and it also has a presence in Colombia, Costa Rica and Ecuador, among other countries.
Although the use of e-commerce in Latin America is relatively low compared with more developed regions, it's growing fast, providing a big market opportunity for MercadoLibre.
MercadoLibre Stock: Active User Growth
Unique active users grew 45% reaching 51.5 million. Gross merchandise volume reached $5 billion, up 48.5% and 101.5% on a foreign-exchange neutral basis.
The company said items sold reached 178.5 million, up 101.4% year-over-year.
MercadoLibre stock has more than doubled this year.
"The pandemic generated significant changes in consumer behavior, which translated into a new milestone in the penetration of e-commerce and online payments in the region," said Pedro Arnt, chief financial officer, in written remarks with the earnings release.
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Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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