"Amazon of Argentina" MercadoLibre stock plunges after Alberto Fernandez wins primary
The “Amazon of Argentina,” MercadoLibre, suffered a brutal stock plunge after Alberto Fernandez scored a shocking primary victory. | Source: ALEJANDRO PAGNI / AFP (i), AFP / HENNY RAY ABRAMS / HRA / DEC (ii). Image Edited by CCN.

Argentine markets suffered what can only be characterized as a bloodbath on Monday, subjecting the peso, bonds, and local stocks to brutal declines.

The reckoning spread beyond the shellshocked country’s borders, and one Nasdaq-listed firm dubbed the “Amazon of Latin America” suffered a merciless correction.

Populist Alberto Fernandez Creams Mauricio Macri in Argentine Primaries

Argentina’s stock market plunge immediately followed Alberto Fernandez’s shocking victory in the country’s presidential primaries.

The center-left populist Fernandez – whose running mate is notorious former president Cristina Fernandez de Kirchner – threatens to unseat market-friendly President Mauricio Macri when voting begins on October 27.

Fernandez and Kirchner scored an impressive 47.7% of the vote, with Macri and his running mate – Miguel Angel Pichetto – finishing a distant second with 32.1%. Though largely symbolic, the vote doesn’t bode well for the incumbent’s odds two months from now.

MercadoLibre Stock Plunges More Than 10%

mercadolibre
A center-left populist administration could roil MercadoLibre’s fantastic growth rate. | Source: Shutterstock

The primary vote’s fallout rippled throughout the global markets, one ingredient in a poisonous cocktail for equities bulls.

MercadoLibre, the $30 billion e-commerce giant based out of Buenos Aires, saw its stock price plunge an excruciating 10%, despite the facts that its shares trade in the US on the Nasdaq and the company has significant operations – and ambitions – outside Argentina.

mercadolibre stock price chart
MELI shares slid as far as $585 following the opening bell. | Source: Yahoo Finance

The “Amazon of Latin America” posted stellar results during last week’s earnings presentation, recording a 63% increase in revenue and net income of $16.2 million thanks to significant growth in Mexico and Brazil.

However, the prospect of continuing that growth in a frosty business climate overseen by Alberto Fernandez sent MELI shareholders into a panic.

MercadoLibre stock fell 10.62%; it last traded at $616.81 after bouncing significantly off its session low of $585.73.

But overreaction or not, weathering a Fernandez-run government is a tall order, especially since “Argentina’s Amazon” must contend with rising competition in Latin America from another e-commerce giant: Amazon.

You May Also Like

Elon Musk’s Inspiration for the Lame Cybertruck Was a James Bond Movie

The Tesla Cybertruck may have been inspired by some cool vehicles, but that doesn’t mean truck-owners will get on board with the design.

New Trump Tariffs Could Send Beer Prices Soaring

Another round of surprise Trump tariffs are the president’s remedy for weaker foreign currencies, but it could be bitter news for beer prices.

5 Reasons McDonald’s Chicken Sandwich Won’t Be a Chick-fil-A Killer

McDonald’s joins the chicken sandwich wars with the Crispy Chicken Sandwich, but it will be no match for Chick-fil-A’s product or brand.

Billionaire Ray Dalio: US Empire Fading as Shanghai Becomes World Financial Hub

Ray Dalio believes that the U.S. empire is losing steam. China is on the rise, and if the trade war goes awry, it will lead to chaos.

Hey Larry Page & Sergey Brin, You Forgot to Sign the Giving Pledge on Your Way Out

Larry Page and Sergey Brin’s fans will be disappointed as they leave Google. So will Bill Gates and Warren Buffett, but for different reasons.

YouTube Rewind 2019 Is the Blandest Thing on the Face of the Planet

YouTube Rewind 2019 is here, and it is the blandest video that has ever existed.