Shares of MercadoLibre (NASDAQ: MELI) flew higher last week, jumping 16% on Thursday and Friday, on some surprising news. A top rival in Brazil, Americanas S.A., was unraveling in an accounting scandal that led to the ouster of its CEO and CFO and wiped out roughly 80% of its stock price in one day.
Americanas is Brazil's largest online retailer, but the company is reeling following the revelation of $3.88 billion in accounting inconsistencies -- debt that it hadn't previously reported. The implications of the error aren't fully clear, but they could offer an opening to MercadoLibre if Americanas' retail business suffers.
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MercadoLibre's Top Competitor Is Imploding. Here's What Investors Need To Know