Why MercadoLibre Stock Pulled Back Today
Shares of MercadoLibre (NASDAQ: MELI), a marketplace platform and payments processor in Latin America, pulled back on Thursday after the company reported its financial results for the first quarter of 2021. The company reported phenomenal first-quarter growth but didn't give guidance. And considering it's coming off a big year, investors might be getting worried about future growth. This caused MercadoLibre stock to drop 5% as of 3 p.m. EST today.
MercadoLibre is both an e-commerce platform and a fintech company, providing exposure to two key secular growth trends. On the e-commerce side, the company's first-quarter gross merchandise volume (GMV) was up 114% year over year in local currency. On the fintech side, its total payment volume (TPV) was up 129%. In short, both sides of the business are thriving compared to last year.
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Source Fool.com
