Overview
- Fourth-quarter revenue rose 47% on a currency-neutral basis to $8.8 billion, with e-commerce GMV up 37%, items sold up 43%, and total payment volume up 42%.
- EPS came in at $11.03 versus the $11.44 consensus, as operating margin fell to 10.1% from 13.5%.
- Operating expenses jumped about 50%, limiting operating profit growth to 8% and contributing to a decline in reported net income for a third straight profit miss.
- Brazil’s free-shipping threshold was cut to 19 reals from 79, which the company says helped lift active buyers by 26%.
- At least seven analysts reduced price targets, with the lowest at $2,400, while ARK Invest disclosed new purchases and the shares are down about 18% over the past year.