What Happened:
Shares of latin American e-commerce company MercadoLibre (NASDAQ:MELI) jumped 5.56% in the after-market session after the company reported first-quarter results that exceeded analysts' gross merchandise value, total payment volume, revenue, and free cash flow expectations. User growth was also solid. Overall, it was an impressive quarter for the company. After the initial pop the shares cooled down to $1.31 thousand, up 1.97% from previous close.
What is the market telling us:
MercadoLibre's shares are very volatile and over the last year have had 45 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
MercadoLibre is up 58.6% since the beginning of the year, and at $1.31 thousand per share it is trading close to its 52-week high of $1.32 thousand from April 2023. Investors who bought $1,000 worth of MercadoLibre's shares 5 years ago would now be looking at an investment worth $3,970.
Is now the time to buy MercadoLibre? Access our full analysis of the earnings results here, it's free.