MercadoLibre, Inc.
(NASDAQ:MELI) stock traded lower in Thursday's premarket session after the company reported better-than-expected second-quarter earnings and record quarterly revenue.
However, investors focused on a third straight quarterly decline in net income as higher spending on free shipping and credit-card expansion weighed on margins, Reuters reported.
Net income declined 11% year over year to $466 million, marking the company's third consecutive quarterly profit decline, although it still exceeded analysts' expectations of $433 million, according to LSEG data cited by Reuters.
Reuters reported that the decline was driven in part by higher free-shipping costs in Brazil and provisions related to the expansion of MercadoLibre's credit-card business.
