Why MercadoLibre Stock Jumped 11% in July
Investors were seizing the opportunity ahead of earnings.
Overview
MercadoLibre (NASDAQ: MELI) stock rose 11% in July, according to data provided by S&P Global Market Intelligence. There wasn't any news specific to the company, but the market seemed to pick up on a good bargain ahead of the second-quarter report on Aug. 5.
To understand why the stock jumped in July, you need to first understand why the stock is 30% off its high. While the company is growing rapidly, profitability has been declining, and the market has been disappointed.
Details
However, it seems to have bottomed out, for now at least. Investors were scooping up shares in July as it got closer to second-quarter earnings, although the report got a tepid reaction.
Source
Originally published at www.fool.com.