MercadoLibre stock dropped 7.8% on October 26 after Brazil's presidential runoff, while the S&P 500 rose 0.7%. No company news, no earnings miss. The sell-off was pure political risk sentiment.
Brazil provides roughly 52.6% of MercadoLibre's revenue, so any policy shift there hits the stock harder than its peers. PayPal fell 3.6% the same day; Amazon gained 0.4%. The gap shows how much country concentration matters.
What did not change: Mercado Pago's credit portfolio at $16.4 billion (up 75% YoY), Q2 revenue of $10.17 billion (up 49.8%), and 19% growth in items per buyer. None of these metrics shifted because of one election. Holding through headline noise and waiting for the Q3 earnings on November 4 made more sense to me than reacting to a political outcome. Not a guaranteed approach; yours may differ.
#MELI #MercadoLibre #BrazilElection #LatAmStocks #Fintech
Brazil provides roughly 52.6% of MercadoLibre's revenue, so any policy shift there hits the stock harder than its peers. PayPal fell 3.6% the same day; Amazon gained 0.4%. The gap shows how much country concentration matters.
What did not change: Mercado Pago's credit portfolio at $16.4 billion (up 75% YoY), Q2 revenue of $10.17 billion (up 49.8%), and 19% growth in items per buyer. None of these metrics shifted because of one election. Holding through headline noise and waiting for the Q3 earnings on November 4 made more sense to me than reacting to a political outcome. Not a guaranteed approach; yours may differ.
#MELI #MercadoLibre #BrazilElection #LatAmStocks #Fintech