MercadoLibre's stock plummeted 5% during intraday trading on Monday, extending a post-earnings selloff that began last week.

The decline reflects continued fallout from the company's Q1 earnings report, which showed earnings per share of $8.23, missing the market consensus range of $8.50 to $9.05 and declining significantly from $9.74 in the year-ago quarter. This marks the fourth consecutive quarter in which net profit has fallen short of Wall Street expectations. While revenue came in strong at $8.845 billion, representing approximately 49% year-over-year growth, cost-side pressures have weighed heavily on profitability.

Additionally, reports that the company conducted layoffs in January as part of its AI expansion initiative have further dampened market sentiment. Analyst actions have also contributed to the downward pressure, with Barclays lowering its price target on MercadoLibre to $2,300 from $2,500 and Morgan Stanley cutting its target to $2,450 from $2,600, though both firms maintain overweight ratings on the shares.