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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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