MercadoLibre's (NASDAQ: MELI) stock price surged 16% on Aug. 4 after the Latin American e-commerce and digital payments giant posted its second-quarter earnings report. Its revenue rose 52% year over year (56.5% on a constant currency basis) to $2.6 billion, which beat analysts' expectations by $80 million. Its net income surged 81% to $123 million, or $2.43 per share, which also topped the consensus forecast by $0.79.

MercadoLibre's headline numbers were impressive, but is its stock finally primed to rebound after losing about a third of its value over the past 12 months? Let's dig deeper to find out.

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Source Fool.com