MercadoLibre’s revenue grows 49% despite margin concerns
MercadoLibre reported a 49% revenue growth, but investors focused on the narrowing operating margin.
Logistics costs increased and shipping subsidies remained elevated, compressing profitability.
Operating profit fell by 20% despite the revenue growth, sparking concerns about the company’s future margins.
The company’s investments in Mercado Pago and logistics expansion pushed costs higher, affecting profitability.