MercadoLibre Shares Drop 10% After Q4 Margins Fall; Squadra Buys $180.6M Stake
MercadoLibre’s shares plunged 10% after Q4 operating margin slid to 10.1% from 13.5% year-over-year despite sales beating analyst estimates. Separately, SQUADRA built a new position of 89,656 shares valued at about $180.6 million, reflecting confidence in the e-commerce and fintech growth outlook.
1. Mixed Fourth Quarter Results
MercadoLibre reported a mixed Q4 with revenue surpassing analyst forecasts but earnings coming in below expectations. Operating margin contracted to 10.1% from 13.5% a year earlier as heavy investments in logistics, AI expansion and marketing weighed on profitability.
2. Stock Market Reaction
Shares tumbled 10% in the morning session, extending the stock’s volatility after 14 moves greater than 5% over the past year. The stock is down 12.1% year-to-date and trades roughly 33.6% below its 52-week high, signaling investor disappointment with profit metrics.
3. SQUADRA’s New Position
Fund manager SQUADRA acquired 89,656 shares of MercadoLibre, valuing the new position at approximately $180.6 million based on quarterly average pricing. This sizeable investment underscores institutional confidence in the company’s long-term e-commerce and fintech expansion prospects.