US stock movement | Q4 profit below expectations MercadoLibre(MELI.US) fell nearly 10%

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Crypto Finance APP learned that on Wednesday, MercadoLibre (MELI.US) fell nearly 10%, hitting a one-year low, currently trading at $1,745.76. The company reported a quarterly profit decline of 12.5%, below analyst expectations, due to investments in credit and logistics. However, thanks to growth in Brazil and Mexico, revenue exceeded expectations.

The earnings report shows that the company’s net profit for the fourth quarter was $559 million, below the analyst forecast of $587 million, a year-over-year decrease of 12.5%, mainly due to increased investments in credit and logistics which narrowed profit margins to 10.1%. Revenue grew approximately 45% year-over-year to $8.8 billion, surpassing the analyst estimate of $8.5 billion. MercadoLibre Senior Vice President of Investor Relations Leandro Cuccioli stated that the profit decline was due to the company’s decision to increase investments for long-term performance, which led to a narrower profit margin.

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