MercadoLibre slips after Greenberg takes aim

Herb Greenberg, no stranger to providing bearish/skeptical commentary about high-growth tech names, highlights criticism of MercadoLibre's (MELI -2.3%) foreign-exchange accounting, which is said to overstate the company's performance when inflation is high (currently the case in some of MercadoLibre's key markets).

Off Wall Street's Mark Roberts believes MercadoLibre's Q2 revenue growth would've been 11% rather than a stated 26% if it properly handled Argentine and Venezuelan forex accounting.

Greenberg also observes CEO Marcos Galperin recently sold 293.3K shares at $124.26. Analyst George Muzea points out Galperin has shown a knack for selling before MercadoLibre's shares go south. "He has top-ticked before ... be careful."

Barron's levied a similar forex-related critique at the Latin American e-commerce leader in July. Shares remain up 61% YTD following an enthusiastic response to the company's Q2 beat.

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