[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  David Perlmutter [@Muzzlebuster](/creator/twitter/Muzzlebuster) on x XXX followers Created: 2025-07-11 22:33:32 UTC Much of $MELI's expansion can impact reported profits. For example, we know that they are aggressively deploying credit cards in much of South America. When they increase their loan portfolio or credit card portfolio, they have to take a bunch of money and set it aside in case some of those loans go bad and they don't get paid back. "Provisions for doubtful accounts" is the line item on the income statement and it subtracts from net income. This is very normal, and quite necessary if you want to loan out money or give out credit cards so that revenue can be made later with these financial instruments. Later, if those provisions are not needed for losses, they filter back down to net income and everything looks great again. But up front, those provisions make it look like the company isn't performing (low net income) unless you know what to look for. This low net income compared to what was expected is often the first thing investors see when the company reports. We saw this in pronounced effect in Q3 2024.  XXX engagements  **Related Topics** [money](/topic/money) [loan](/topic/loan) [united states](/topic/united-states) [credit cards](/topic/credit-cards) [$melis](/topic/$melis) [Post Link](https://x.com/Muzzlebuster/status/1943800855724962090)
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David Perlmutter @Muzzlebuster on x XXX followers
Created: 2025-07-11 22:33:32 UTC
Much of $MELI's expansion can impact reported profits. For example, we know that they are aggressively deploying credit cards in much of South America. When they increase their loan portfolio or credit card portfolio, they have to take a bunch of money and set it aside in case some of those loans go bad and they don't get paid back. "Provisions for doubtful accounts" is the line item on the income statement and it subtracts from net income. This is very normal, and quite necessary if you want to loan out money or give out credit cards so that revenue can be made later with these financial instruments.
Later, if those provisions are not needed for losses, they filter back down to net income and everything looks great again. But up front, those provisions make it look like the company isn't performing (low net income) unless you know what to look for. This low net income compared to what was expected is often the first thing investors see when the company reports. We saw this in pronounced effect in Q3 2024.
XXX engagements
Related Topics money loan united states credit cards $melis