(Bloomberg) -- Shares of MercadoLibre Inc., the Latin American e-commerce and fintech giant, fell the most since May 2022 after missing profit estimates, shaving $17.4 billion off its market value.

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The shares sank 16% after the company reported net income and other profit metrics that far trailed estimates on the back of increased investments in its credit business and logistics.

Still, most analysts remained broadly positive on the long-term potential for MercadoLibre and its ability to deliver on its stated goals to grow its dominance in online retail and become one of the region's largest financial services provider.

MercadoLibre "has undergone several 'show me' moments in its recent history as it doubled down on some capital allocation decisions that raised questions and triggered intense stock selloffs over time," Itau BBA analysts Rodrigo Gastim and Maria Clara Infantozzi, wrote in a report. "And the common denominator has always been its capacity to exceed return expectations, followed by strong stock bounce backs."

Even after the selloff, the Montevideo, Uruguay-based company remains Latin America's most valuable company, with a market capitalization of $89 billion, keeping its edge over Brazilian oil producer Petroleo Brasileiro SA.

In the third quarter earnings report released late Wednesday, MELI, as its known, said its overall credit book grew by 77% from a year earlier to $6 billion, with the portion tied to credit cards surging 172% over the same period.

Provisions set aside for all the lending cut into net income, which at $397 million fell short of the $513 million average estimate of analysts polled by Bloomberg.

The company also increased investments in logistics in the quarter while inaugurating five new fulfillment centers in Brazil and another one in Mexico, Chief Financial Officer Martin de los Santos said in an interview before the release. Overall revenue met expectations at $5.3 billion.

"This was a quarter of very large growth, but also investments in some of our strategic initiatives -- one of which is credit," de los Santos said. "The credit card is an important part of our fintech strategy." While it probably adds "a little margin pressure year on year," the company believes it's "the right investment for the long-term growth opportunity," he added.

MercadoLibre has 25 buy recommendations, three holds and one sell, among 29 analysts surveyed by Bloomberg. Its 12-month target sits at $2,349 compared with the closing price of $1,774.