Why MercadoLibre Stock Popped 14.5% in November

Why MercadoLibre Stock Popped 14.5% in November

Shares of MercadoLibre (NASDAQ: MELI) jumped nearly 15% last month, according to data provided by S&P Global Market Intelligence. The dominant e-commerce platform in Latin America delivered solid third-quarter results, which helped to assuage fears that Amazon.com (NASDAQ: AMZN) was about to eat its lunch.

Coming into November, MercadoLibre's stock was reeling following a report that online retail titan Amazon.com was preparing to expand its operations in Brazil. Analysts warned that Amazon's entry would pressure MercadoLibre's margins and gross merchandise volume and ultimately lead to a loss of market share for the Latin American e-commerce leader.

However, MercadoLibre's third-quarter results helped to lessen those concerns. Its revenue surged more than 60% to $370.7 million, which was well above Wall Street's expectations for $347.7 million. Its earnings per share declined 28% to $0.63 -- mainly due to the company's investments in expanding its free shipping offerings -- but that also topped analysts' estimates. Most importantly, MercadoLibre displayed strength across its key metrics, including registered users (up 21% year over year), items sold (up 56%), and payment transactions (up 69%).

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Source: Fool.com