MercadoLibre Stock Down 36% -- Strong Revenue Growth Makes It a Buy

MercadoLibre (NASDAQ: MELI) posted its first-quarter results on May 7, and the market had a negative reaction to the report despite sales and earnings beats in the period. The business recorded earnings per share of $8.23 on sales of $8.58 billion. For comparison, the average analyst estimate had called for earnings per share of $8.20 and revenue of $8.32 billion. Even though the company's earnings beat the average analyst target, performance still came in below some higher-end estimates. MercadoLibre has been prioritizing sales expansion recently, and it's coming at a cost for margins. Making matters worse in the eyes of some investors, management looks poised to continue that course for the foreseeable future. But while earnings are currently being tamped down by spending on growth projects, MercadoLibre is posting impressive overall results. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool