Why MercadoLibre Stock Jumped 14% in December
Shares of Latin American e-commerce giant MercadoLibre (NASDAQ: MELI) gained 14% in December, according to data provided by S&P Global Market Intelligence. The stock had tanked in November, when management issued new shares and financial stocks were hit hard by worries over the omicron coronavirus variant. The price bounced back in December as it began to look like most of the initial fears about how the new wave of the pandemic would impact the company had been overblown.
MercadoLibre, like many e-commerce companies, demonstrated outstanding performance at the beginning of the pandemic. It consistently posted year-over-year revenue growth and total payment volume (TPV) growth of over 100%, and at times of more than 150%. The company's stock delivered commensurate gains, rising by 170% in 2020. But decelerating growth and some losses caused investors to think again, and MercadoLibre shares lost 20% in 2021.
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Source Fool.com
