MercadoLibre's stock plummeted 9.89% during intraday trading on Friday. The sharp decline followed the release of the company's first-quarter financial results the prior evening, which showed a profit drop despite strong revenue growth.

The Latin American e-commerce and fintech giant reported Q1 net profit of $417 million, a 15.6% decrease from the same period last year, even as revenue jumped 49% to $8.8 billion. The company attributed the profit decline to higher investments aimed at securing long-term market share. Furthermore, earnings per share of $8.23 fell short of market expectations.

Adding to the negative sentiment, investment firm Benchmark cut its price target on MercadoLibre to $2,380 from $2,780. The combination of a profit miss and a reduced analyst outlook drove the significant sell-off in the stock.