US Stock Market Move | Q4 profits lower than expected, MercadoLibre (MELI.US) drops nearly 10%.

On Wednesday, MercadoLibre (MELI.US) fell nearly 10%, hitting a one-year low, now trading at $1,745.76. On the news front, the company reported a 12.5% decline in quarterly profits, below analysts' expectations, impacted by credit and logistics investments. However, thanks to business growth in Brazil and Mexico, revenue exceeded expectations. According to the financial report, the company's net profit in the fourth quarter was $559 million, lower than analysts' expected $587 million, a 12.5% year-on-year decrease, mainly due to increased investments in credit and logistics narrowing profit margins to 10.1%. Revenue grew by about 45% year-on-year, reaching $8.8 billion, higher than analysts' expected $8.5 billion. Leandro Cuccioli, Senior Vice President of Investor Relations at MercadoLibre, stated that the decline in profits was due to the company's decision to increase investments in long-term performance, leading to a narrowing of profit margins.