Shares of MercadoLibre (MELI) tumbled 5.02% over the past 24 hours, extending losses after the Latin American e-commerce and fintech giant reported second-quarter financial results that revealed a third consecutive quarterly decline in net profit and sharply narrower operating margins, despite record revenue that beat analyst expectations.

The company posted Q2 revenue of $10.2 billion, surging 50% year-over-year and comfortably above the $9.7 billion consensus estimate. However, net income fell approximately 11% to $466 million, while the EBIT margin dropped to 6.7% from 12.2% a year earlier, as heavy strategic investments in free shipping, credit-card expansion, and cross-border sales continued to compress short-term profitability. The profit slide overshadowed the top-line beat, triggering a sharp sell-off that reversed initial post-earnings gains.

MercadoLibre's management has maintained that these investments are essential to deepening user engagement and capturing market share across key markets such as Brazil and Mexico, and that the company will not alter its long-term strategy merely to preserve near-term profit growth. However, the persistent gap between accelerating revenue and declining earnings fueled investor concerns, driving the stock lower in extended trading.