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Why Is Mercadolibre Stock Falling, and is it a Buying Opportunity? | MELI Stock Analysis

Mercado Libre's stock price declined despite a 49% year-over-year revenue increase because the cost of revenue grew faster, leading to a 20% decrease in operating income. This was due to a strategic decision to offer free shipping on lower purchase thresholds to drive buyer activity and long-term growth in Latin America's e-commerce market.

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Mercado Libre's stock is a hold as the company prioritizes long-term growth over short-term profitability, with a risky but potentially rewarding strategy of offering free shipping.

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