Last week, investors saw three stocks fall by 10% or more. MercadoLibre (MELI) slumped by 12.7% on May 8. Investors did not like the first-quarter earnings report.
In Q1, MercadoLibre posted earnings per share of $8.23 (GAAP). Revenue grew by 49.0% Y/Y to $8.85 billion. TPV, or total payment volume, jumped by 50% Y/Y to $87.2 billion. The firm has strong momentum that will continue from Q1. Shares likely fell when markets did not understand the investment cycle the firm is embarking on.
MercadoLibre is growing its credit card portfolio. It launched the card in Argentina, so as commerce fulfillment infrastructure grows, the company may accelerate its growth.
Motorola Solutions (MSI) fell by 11.36% last Friday. In Q1, non-GAAP EPS was $3.37. Revenue grew by 8.4% Y/Y to $2.71 billion. In Q2, revenue will grow by 8.5%. The Video unit posted 16% growth. Body-worn cameras, ALPRs, and its unity platform, based on the cloud, are all tailwinds for its growth.
Mettler-Toledo International (MTD) fell by nearly 15% last Friday. In Q1, non-GAAP EPS of $8.91 is on revenue of $947 million (+7.2% Y/Y). Management voiced caution on market conditions. As such, it set a Q2 sales growth target of 3%. For the year, growth will increase by around 4%. The life sciences tools and services firm trades at a premium, so expect selling to accelerate from here.
