Why MercadoLibre Stock Fell Today
Portfolio Pulse from Ryan Gustafson
Shares of MercadoLibre, Inc. (NASDAQ:MELI) fell after B of A Securities downgraded the stock from Buy to Neutral and lowered its price target from $1680 to $1350. The downgrade was due to the disruptive implications of the company's new cross-border tax rule, which exempts eCommerce purchases of up to US$50 from a 60% import tariff. The stock experienced above-average trading volume of 1.2 million shares on Monday.
July 10, 2023 | 7:53 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
MercadoLibre's stock was downgraded due to the potential disruption from a new cross-border tax rule. This led to a drop in the stock price and an increase in trading volume.
The downgrade by B of A Securities is a direct result of the new cross-border tax rule, which could disrupt MercadoLibre's business. This negative sentiment led to a drop in the stock price and an increase in trading volume, indicating a potential short-term negative impact on the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100