Is MercadoLibre Stock a Buy Now?
MercadoLibre (NASDAQ: MELI) posted its first-quarter report on May 5. The Latin American e-commerce leader's revenue rose 63% year over year (YOY) to $2.25 billion, which beat analysts' estimates by $210 million. It generated a net profit of $65 million, compared to a net loss of $34 million a year ago, and its earnings of $1.30 per share beat analysts' expectations by $0.19.
Those numbers were impressive, but MercadoLibre's stock barely budged after the report and remains down about 30% for the year. Like many other e-commerce stocks that soared during the pandemic, MercadoLibre lost its momentum as investors fretted over a post-lockdown slowdown, inflationary headwinds, and rising interest rates.
But did investors overreact and toss out the baby with the bathwater? Let's review MercadoLibre's growth rates and valuations to find out.
Source Fool.com
