Why MercadoLibre Stock Jumped on Friday

Core Viewpoint - MercadoLibre reported impressive fourth-quarter results for 2024, leading to a significant increase in its stock price, reflecting strong performance despite economic challenges in Argentina [1][4]. Financial Performance - Fourth-quarter revenue increased by 37% year over year, reaching $6.06 billion, with constant-currency sales soaring by 96$12.61, surpassing Wall Street's expectations of $8.05 per share on revenue of approximately$5.79 billion [2]. Segment Performance - The company experienced robust sales growth across all reportable segments and markets, highlighted by a tripling of consolidated sales in Argentina when adjusted for currency and a 106% increase in its third-party marketplace segment [3]. Stock Performance - MercadoLibre's stock is approaching new all-time highs, recently breaking through a resistance level around $2,100 per share and now targeting the$2,300 mark [4]. - The stock is currently trading at a high valuation of 61 times updated earnings, justified by its strong growth amidst an economic crisis [5].