Is MELI's stock price likely to increase after the earnings report?

MercadoLibre's stock price is unlikely to increase following the earnings report. Here's why:

1. Earnings Miss Estimates: MercadoLibre reported third-quarter earnings per share (EPS) of $7.83, significantly lower than the consensus estimate of $10.57. This indicates that the company's performance did not meet investor expectations.
2. Revenue Growth Not Enough to Compensate for Margin Decline: Although MercadoLibre's revenue grew by 35% year-over-year, reaching $5.31 billion, the net profit margin dropped to 7.5%. This decline in margin is a concern for investors, as it suggests that increased revenue is not translating into higher profits.

3. Investor Concerns Over Profitability: Investors are worried about the company's profit margins and the impact of increased spending on its shipping network and credit card business. These concerns are likely to lead to a negative reaction from investors, putting downward pressure on the stock price.
4. Analyst Ratings and Price Targets: Despite the earnings miss, some analysts have maintained positive ratings and set high price targets, suggesting that there is potential for the stock price to increase. However, the majority of analysts have not revised their price targets in response to the earnings report, which could indicate a lack of confidence in the stock's short-term performance.
5. Market Reaction: The stock price of MercadoLibre sank by 15.1% to $1,797.67 after the earnings report fell short of market expectations. This significant drop in the stock price reflects the market's negative reaction to the earnings report and suggests that the stock price may continue to face downward pressure.

In conclusion, given the earnings miss, the decline in profit margins, and the negative reaction from investors, it is unlikely that MercadoLibre's stock price will increase after the earnings report. However, it is important to note that the stock price is influenced by a variety of factors, and unexpected positive developments could potentially lead to a rebound in the stock price.