Why Mercado Libre Stock Took a Big Dive Today
Storied South American e-commerce company (NASDAQ: MELI) experienced a bit of a fire sale on the stock market Monday. Its shares closed the day almost 5% lower on the back of a recommendation downgrade from a prominent U.S. bank. By contrast, the S 500 index did relatively well, rising by 0.2%.
The downgrade came from none other than Big Four lender Bank of America. That morning, analyst Robert Ford Aguilar pushed his recommendation on MercadoLibre down one peg to neutral. Prior to that, he had tagged the e-commerce specialist as a buy. His move was accompanied by a price target cut to $1,350 per share from the preceding $1,680.
The source of Aguilar's concern is a set of new cross-border commerce regulations in Brazil. Transactions of up to the equivalent of $50 are subject to a 17% value-added tax (VAT), although they are exempted from a 60% import tariff.
Source Fool.com
Mercadolibre Inc Stock
The stock is an absolute favorite of our community with 29 Buy predictions and no Sell predictions.
On the other hand, the target price of 1853 € is below the current price of 1865.8 € for Mercadolibre Inc, so the potential is actually -0.69%.
