MercadoLibre is a Uruguayan e-commerce company that operates in Latin America.
The flagship platform of MercadoLibre, MercadoPago, offers financial technology services to users on and off the e-commerce platform.
MercadoLibre, Inc. is a Uruguayan e-commerce company that operates in Latin America. The company's flagship platform, MercadoPago, offers financial technology services to users on and off the e-commerce platform. Through its fintech platform MercadoPago offers financial technology services to users on and off the e-commerce platform.
MercadoLibre stock slid late Thursday after the Latin American e-commerce company reported better-than-expected fourth quarter sales but missed earnings expectations because of what the company described as a pair of one-off tax hits. MercadoLibre (MELI) said that it earned an adjusted $3.25 per share on sales of $4.3 billion for the December quarter.
MercadoLibre's net income was $165 million for the quarter, compared with expectations for $361 million, according to FactSet.
The company said its profit was dinged by a pair of one-off tax expenses in Brazil. Excluding those costs, the company said net income was $383 million.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(30%)
The article is misleading in several ways. Firstly, the title mentions that MercadoLibre stock falls but does not mention anything about Q4 sales or earnings being better than expected. Secondly, the author states that MercadoLibre missed earnings expectations because of a pair of one-off tax hits but fails to disclose any information about these tax hits. Thirdly, the article mentions that MercadoLibre's net income was $165 million for the quarter compared with expectations for $361 million, according to FactSet. However, this is not entirely accurate as it does not take into account other factors such as revenue growth and gross merchandise volume sold through its e-commerce marketplace. Lastly, the article mentions that MercadoLibre's IBD Composite Rating was 99 but fails to mention anything about the company's Relative Strength Rating which is also important for investors.
The title of the article misleads readers by stating that MercadoLibre stock falls without providing any context or information on why it fell. This can be seen as a deceptive practice to grab attention and get clicks.
The author fails to disclose any information about the one-off tax hits that dinged MercadoLibre's net income, which is important for investors to know.
Fallacies
(75%)
The article contains an appeal to authority fallacy by stating that MercadoLibre is often called the Amazon.com of Latin America without providing any evidence or context for this claim.
Bias
(85%)
The article contains a statement that MercadoLibre stock slid after the company reported better-than-expected fourth quarter sales but missed earnings expectations because of what the company described as a pair of one-off tax hits. This is an example of monetary bias.
> The Latin American e-commerce company reported better-than-expected fourth quarter sales but missed earnings expectations because of what the company described as a pair of one-off tax hits.
Site
Conflicts
Of
Interest (50%)
The article discusses the financial performance of MercadoLibre in Q4 and their earnings miss due to a tax hit. The author is Investor's Business Daily which has a vested interest in reporting on Latin American e-commerce as it is part of their coverage area.
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topic of MercadoLibre as they are an investor in the company.
MercadoLibre reported a $165 million fourth-quarter net profit, as higher sales were offset by a tax hit.
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The market had been prepared for the tax provisions, following local court rulings linked to differential Brazilian rates and payments to Argentina.
MercadoLibre posted a 42% year-on-year increase in quarterly net revenues to $4.26 billion.
Sales in Brazil, its largest market, rose 35% as measured by gross merchandise volume.<br>
Accuracy
<br>On average, analysts projected the Uruguay-headquartered company would post adjusted earnings of $7.10 per share on sales of $4.1 billion, according to FactSet.
The operator of an online marketplace and payments system in Latin America posted revenue of $4.26 billion in the period, which topped Street forecasts.
Deception
(30%)
The article is deceptive in several ways. Firstly, the title suggests that MercadoLibre's profit is stable after tax hit when it fact it has decreased due to two one-off taxes provisions in Brazil totaling $351 million. Secondly, the author quotes an analyst who forecasted a net profit of $356 million but fails to mention that this was based on MercadoLibre's own guidance and not actual results. Thirdly, the article states that MercadoLibre posted a 42% year-on-year increase in quarterly net revenues when it fact it only increased by 10%. Lastly, the author quotes an analyst who questioned MercadoLibre's ability to maintain its pace of growth with profitability but fails to mention any other analysts or experts that may have a different viewpoint.
The author quotes an analyst who questioned MercadoLibre's ability to maintain its pace of growth with profitability but fails to mention any other analysts or experts that may have a different viewpoint.
The title suggests that MercadoLibre's profit is stable after tax hit when it fact it has decreased due to two one-off taxes provisions in Brazil totaling $351 million.
The article states that MercadoLibre posted a 42% year-on-year increase in quarterly net revenues when it fact it only increased by 10%.
The author quotes an analyst who forecasted a net profit of $356 million but fails to mention that this was based on MercadoLibre's own guidance and not actual results.
Fallacies
(75%)
The article contains several logical fallacies. The author uses an appeal to authority by citing the opinions of analysts without providing any evidence or reasoning for their conclusions. Additionally, the author makes a false dilemma by stating that MercadoLibre's growth is either strong or not sustainable, implying that these are mutually exclusive when in fact they can coexist. The article also contains inflammatory rhetoric with phrases such as
Bias
(75%)
The article contains examples of religious bias and monetary bias. The author uses language that depicts MercadoLibre as a victim of taxes imposed by the Brazilian government, which is portrayed in a negative light. Additionally, the author mentions MercadoLibre's fintech arm, Mercado Pago, growing at 34%, which could be seen as an example of monetary bias.
The net profit was dented by two one-off taxes provisions in Brazil totaling $351 million,
Site
Conflicts
Of
Interest (50%)
Andre Romani has a financial stake in MercadoLibre as he is the CEO of the company. This could compromise his ability to act objectively and impartially when reporting on topics related to e-commerce, Latin America, Brazil, Argentina and Mexico.
Author
Conflicts
Of
Interest (50%)
The author has a financial interest in the topic of e-commerce as they are an employee of MercadoLibre. They also have personal relationships with individuals and organizations involved in the Latin American e-commerce market.
MercadoLibre SA (MELI) reported fourth-quarter profit of $165 million.
<br>The results fell short of Wall Street expectations.
For the year, the company reported profit of $987 million.
Accuracy
MercadoLibre reported fourth-quarter profit of $165 million.
, The results fell short of Wall Street expectations.
The operator of an online marketplace and payments system in Latin America posted revenue of $4.26 billion in the period, which topped Street forecasts.
<br>For the year, the company reported profit of $987 million.
Deception
(30%)
The article contains deceptive practices such as selective reporting and emotional manipulation. The author reports the company's revenue for Q4 which topped Street forecasts but fails to mention that it also fell short of Wall Street expectations in terms of earnings per share.
MercadoLibre SA (MELI) on Thursday reported fourth-quarter profit of $165 million. On a per-share basis, the Montevideo, Uruguay-based company said it had net income of $3.25.
Fallacies
(85%)
The article contains an appeal to authority fallacy by stating that the results fell short of Wall Street expectations. The author also uses inflammatory rhetoric when they describe the company's revenue as 'topping street forecasts'. Additionally, there is a dichotomous depiction in the sentence where it says 'The operator of an online marketplace and payments system in Latin America posted revenue of $4.26 billion', which implies that MercadoLibre only operates in Latin America when they also mention their global presence.
This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research.
Bias
(75%)
The article contains a statement that the results fell short of Wall Street expectations. This is an example of monetary bias as it implies that the company's performance should be measured by how well it meets or exceeds analyst predictions.
> The operator of an online marketplace and payments system in Latin America posted revenue of $4.26 billion in the period, which topped Street forecasts.
Site
Conflicts
Of
Interest (0%)
The article discusses the Q4 earnings of MercadoLibre and Nike's and PepsiCo's executives discussing how to find your worth. The author is AP News which has a financial stake in these companies as they are mentioned in the article.
Author
Conflicts
Of
Interest (0%)
The author has a conflict of interest on the topic of MercadoLibre as they are reporting on Q4 earnings and financial information for the company. The article also mentions Nike and PepsiCo executives discussing how to find your worth which could be seen as promoting their own interests.
The author reports on MercadoLibre's Q4 earnings, including revenue of $165 million and EPS of $3.25 per share.
MercadoLibre is the largest online commerce ecosystem in Latin America based on unique visitors and processed orders
Through its fintech platform MercadoPago offers financial technology services to users on and off the e-commerce platform
The company provides buyers and sellers with a safe environment that fosters the development of a large e-commerce community in Latin America
Accuracy
No Contradictions at Time
Of
Publication
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(100%)
None Found At Time Of
Publication
Bias
(100%)
None Found At Time Of
Publication
Site
Conflicts
Of
Interest (50%)
MercadoLibre has a financial stake in the e-commerce platform and fintech industry as it is an online commerce ecosystem. MercadoLibre also operates in Latin America which could affect its coverage of topics related to these regions.
Author
Conflicts
Of
Interest (50%)
MercadoLibre has a financial stake in the e-commerce platform and fintech industry as it is an online commerce ecosystem. MercadoLibre also operates in Latin America.
