Group 1: Shopify - Shopify has shown remarkable growth, with shares increasing from a split-adjusted price of about $3 at its IPO in 2015 to around $120 today, while maintaining over 20% annual revenue growth [4][8] - The primary growth driver for Shopify is its merchant solutions, which include payment processing, shipping solutions, and capital lending, now accounting for 74% of its business [5][6] - Shopify's merchant solutions are a high-margin revenue stream, and the company is expanding its market presence by doubling the number of markets for Shopify Payments and launching AI-driven tools to assist merchants [6][8] Group 2: MercadoLibre - MercadoLibre is a leading e-commerce platform in Latin America, experiencing significant growth due to the underpenetration of e-commerce in the region, with a revenue increase of 64% year-over-year in Q1 2025 [9][10] - The company has a growing presence in financial services, with a 31% increase in monthly active users and a 74% increase in its credit portfolio, indicating strong growth potential [12] - MercadoLibre's stock has risen 41% year-to-date, driven by its well-managed business and low exposure to tariffs, positioning it for continued shareholder value creation [13] Group 3: Roku - Roku has faced challenges but is expected to report an operating profit by 2026, with Q1 2025 revenue growth of 16% to $1.02 billion and a 37% improvement in adjusted EBITDA [14][15] - The company has formed a new partnership with Amazon, enhancing its advertising capabilities and mitigating competition in the streaming distribution space [16] - Analysts anticipate 11% growth for Roku in Q2 2025, and if the company can exceed expectations and move towards profitability, there is significant upside potential for its stock [17]

Core Insights - MercadoLibre (MELI) is optimistic about Argentina's economic recovery, with analysts forecasting strong GDP growth in 2025 and 2026 as reforms take effect [1] - The company is strategically expanding its operations in Argentina, focusing on cross-border trade and enhancing its marketplace, particularly in the supermarket category [2] - MELI's financial arm, Mercado Pago, plans to apply for a banking license to establish the largest digital bank in Argentina and will start issuing credit cards in the second half of the year [3] Financial Performance - Argentina's revenues for MELI increased from $615 million (14.2% of total revenues) in Q1 2024 to $1.38 billion (23.3% of total revenues) in Q1 2025, more than doubling year-over-year [4] - The Zacks Consensus Estimate for second-quarter 2025 Argentina revenues is projected at $1.46 billion [4] Competitive Landscape - MercadoLibre faces competition from Amazon, which has introduced flat-rate and free shipping to Argentina, and DLocal, which plans to invest up to $100 million in the country [5][6] Stock Performance and Valuation - MELI shares have gained 40.8% year-to-date, outperforming the Zacks Internet-Commerce industry and the Zacks Retail-Wholesale sector [7] - The stock is currently trading at a forward 12-month Price/Sales ratio of 3.87X, compared to the industry's 2.17X [10] - The Zacks Consensus Estimate for second-quarter 2025 earnings is $12.01 per share, indicating a 14.60% year-over-year growth [12]

Core Insights - MercadoLibre (MELI) has established itself as the leading fintech acquiring engine in Latin America by focusing on small and informal sellers rather than large retailers [1][2] Group 1: Business Growth and Performance - MELI's Acquiring Total Payment Volume (TPV) reached $40.3 billion in Q1 2025, reflecting a 59% year-over-year FX-neutral growth [2] - Mexico and Brazil have experienced nine consecutive quarters of double-digit TPV growth, while Argentina's TPV surged 144% year-over-year, FX-neutral [2][4] - The Zacks Consensus Estimate for Q2 2025 total TPV is approximately $64 billion [4] Group 2: Competitive Landscape - MELI faces competition from StoneCo (STNE) and DLocal (DLO), both of which are expanding in key Latin American markets [5][6] - StoneCo processed R$133.5 billion ($24.7 billion) in TPV in Q1 2025, with a client base of 4.4 million [5] - DLocal achieved $8.1 billion in TPV in Q1 2025, marking a 53% year-over-year increase [6] Group 3: Strategic Focus and Future Outlook - MELI is concentrating on serving small and medium-sized businesses while enhancing support for micro-sellers [3] - The company is improving recurring payment features, adding point-of-sale devices, and providing business tools for inventory and billing [3] - By integrating credit, banking, payments, and software, MELI aims to facilitate digital participation for more individuals and businesses [4] Group 4: Stock Performance and Valuation - MELI shares have increased by 41.2% year-to-date, outperforming the Zacks Internet – Commerce industry and the Zacks Retail-Wholesale sector [7] - The stock is currently trading at a forward 12-month Price/Sales ratio of 3.90X, compared to the industry's 2.17X [11] - The Zacks Consensus Estimate for Q2 2025 earnings is $12.01 per share, indicating a 14.60% year-over-year growth [15]

Key Takeaways MELI's largest market, Brazil, faces risk from an imposed 50% U.S. tariff on imports. Mercado Ads and Mercado Pago are key to MELI's future growth across Latin America. S&P upgraded MELI to BBB, citing strong performance, profitability, and financial discipline.MercadoLibre (MELI) has built its largest and most crucial market in Brazil, which now accounts for more than 50% of its total revenues. However, Trump’s 50% tariff on Brazilian imports has raised concerns. If the country’s economy ta ...

So, our next guest says a lot of the good news is already priced into stocks, making further upside harder to come by, while high valuations meet high downside risks if earnings disappoint. Joining us now for more is Tom Bulick, CEO and managing partner at Strategy Asset Managers. Tom, uh, to what degree do we need to think about international markets as a risk versus an opportunity.I know you like Marcato Libre. We do. And thank you for having me on set today.and uh nice to be here. We we like uh the inter ...

Core Insights - MercadoLibre (MELI) is heavily reliant on Brazil, which accounts for over 50% of its revenues, with strong growth in both commerce and fintech sectors [1][4] - The company plans a significant investment of 34 billion reais ($5.8 billion) in Brazil for 2025, marking a 48% increase from the previous year [4][9] - Recent geopolitical tensions, particularly President Trump's 50% tariff on Brazilian imports, have raised concerns about potential impacts on MercadoLibre's operations and consumer spending in Brazil [2][3] Financial Performance - In Q1 2025, MercadoLibre reported net revenues of $3.08 billion from Brazil, reflecting a 20% year-over-year increase [3] - The Zacks Consensus Estimate for 2025 revenues from Brazil is projected at $14.3 billion [3] - The second-quarter 2025 earnings estimate stands at $12.01 per share, indicating a 14.60% year-over-year growth [15] Competitive Landscape - MercadoLibre faces increasing competition in Brazil from Amazon and Sea Limited's Shopee, both of which are expanding their market presence [5][6] - Amazon offers over 100 million products and has established a robust logistics network in Brazil [5] - Shopee is leveraging aggressive pricing and mobile-first strategies to capture market share in Brazil [6] Stock Performance and Valuation - MELI shares have increased by 41.7% year-to-date, outperforming the Zacks Internet-Commerce industry and the Retail-Wholesale sector [7] - The stock is currently trading at a forward Price/Sales ratio of 3.91X, compared to the industry's 2.17X, indicating a higher valuation [11]

Core Viewpoint - Mercado Libre has received an investment grade rating of 'BBB-' from S&P Global Ratings, following a similar upgrade from Fitch Ratings, indicating strong confidence in the company's financial health and operational performance [1][2][3]. Group 1: Rating Upgrade - S&P Global Ratings upgraded Mercado Libre's rating from 'BB+' to 'BBB-' with a Stable Outlook, marking it as a full investment grade company [1][3]. - This upgrade reflects the company's strong operating performance, improving profitability, and conservative balance sheet, with debt to EBITDA expected to remain below 2.0x and debt-to-tangible equity below 1.0x [2][3]. Group 2: Business Performance - The rating upgrade underscores Mercado Libre's enhanced financial and operational performance, driven by substantial growth across its business lines, particularly in Commerce and Fintech [3][4]. - The company has successfully expanded its user base and market share, particularly in Brazil, Mexico, and Chile, by driving offline retail online and democratizing access to financial services [3][4]. Group 3: Strategic Strengths - Both S&P and Fitch highlighted the strength of Mercado Libre's vertically integrated ecosystem, which includes marketplace, logistics, fintech, and advertising businesses, as well as its market leadership in key Latin American countries [2][4]. - The company's expanding fintech operations, growth in its credit portfolio, and continued investment in logistics infrastructure are seen as key drivers of long-term potential [4]. Group 4: Market Position - With the second investment grade rating, Mercado Libre strengthens its standing in global capital markets, reflecting high confidence in its growth trajectory, risk management, and long-term strategic vision [5]. - Founded in 1999, Mercado Libre operates in 18 countries, offering a comprehensive ecosystem for commerce and financial services, which positions it well for future growth in a high-potential market [5].

Core Viewpoint - Mercado Libre (Meli) is the largest and most successful internet company in Latin America, comparable to Alibaba in China and Sea in Southeast Asia, with significant e-commerce and fintech operations [1][4]. Group 1: Company Overview - Meli operates two main business segments: e-commerce and financial payments, having established a comprehensive business ecosystem [5][10]. - The e-commerce segment includes commissions, logistics, platform payments, and advertising, while the fintech segment encompasses online/offline payments, digital wallets, and consumer finance [6][7][8]. - Meli's financial services have evolved to become a significant revenue contributor, with credit services generating approximately 78% of the payment segment's revenue by Q1 2025 [9][10]. Group 2: Historical Performance - Meli's revenue growth was modest from 2009 to 2018, with annual growth rates between 20% and 40%, but accelerated significantly post-2019 due to the pandemic [12][14]. - The company's GMV (Gross Merchandise Volume) CAGR increased from 20.3% (2016-2019) to 35% (2019-2022), driven by the shift to online shopping during the pandemic [14][15]. Group 3: Market Environment - The Latin American e-commerce market is still developing, with a projected market size of approximately $175 billion by 2024, significantly smaller than mature markets like the US and China [18][20]. - Brazil and Mexico account for about 80% of the region's e-commerce market, with Brazil alone representing 44% [20][23]. - The growth rate of the Latin American e-commerce sector has historically been slow, with pre-pandemic growth rates between 13% and 19% [25][27]. Group 4: Competitive Position - Meli holds a dominant market share of approximately 26% in the Latin American e-commerce market, significantly ahead of its closest competitor, Amazon, which has a 5% share [35][38]. - In Brazil, Meli's market share is about 34%, while in Mexico, it is around 22%, indicating strong but not absolute dominance [39][64]. - The competitive landscape includes Shopee and Magazine Luiza, with Shopee rapidly gaining market share through aggressive pricing and marketing strategies [40][58]. Group 5: Logistics and Fulfillment - Meli has developed a robust logistics network, with over 90% of its orders fulfilled through its own logistics capabilities, enhancing delivery speed and reliability [74][80]. - The company has transitioned from third-party logistics to self-managed logistics, achieving significant improvements in delivery times, with over 50% of orders delivered within one or two days [77][80]. Group 6: Future Outlook - Despite Meli's current market leadership, competition is intensifying from Shopee and new entrants like Temu and TikTok Shop, which may challenge Meli's market position in the future [58][84]. - The overall market for e-commerce in Latin America presents opportunities for growth, but companies must leverage their competitive advantages to capture market share effectively [33][83].

Core Insights - MercadoLibre Inc. (MELI) experienced a significant trading signal known as Power Inflow, indicating potential upward movement in its stock price [2][3] - The Power Inflow occurred at a price of $2443.25, suggesting a bullish sentiment among traders and a possible entry point for capitalizing on expected gains [3][8] - The indicator is based on order flow analytics, which helps traders understand the movement of institutional and retail orders, providing insights into market conditions [4][6] Trading Signal Details - The Power Inflow typically occurs within the first two hours of market opening and is indicative of the stock's overall direction for the day, driven by institutional activity [5] - Following the Power Inflow, MELI's stock reached a high price of $2476.60, resulting in a return of 1.4% from the initial price [8] Order Flow Analytics - Order flow analytics involves analyzing the volume and characteristics of buy and sell orders to make informed trading decisions, and is viewed as a bullish signal by active traders [4][6] - Incorporating order flow analytics can enhance trading performance by identifying opportunities and interpreting market conditions more effectively [6]

Market Capitalization Changes - The market capitalization of major global technology and internet companies has shown varied changes as of July 9, 2025, with notable increases in companies like Tesla, which rose by 1.32% to reach $959.2 billion, and Alibaba, which increased by 1.62% to $257.6 billion [3][4][5]. - Companies such as Netflix and Shopify experienced declines, with Netflix decreasing by 1.11% to $548.8 billion and Shopify dropping by 3.58% to $619.1 billion [3][4]. Notable Performers - AMD saw a significant increase of 2.24%, bringing its market cap to $223.4 billion, while Intel had a remarkable rise of 7.23%, reaching $102.8 billion [5][6]. - Other companies with positive performance include Adobe, which increased by 1.41% to $162.1 billion, and ASML, which rose by 1.15% to $312.2 billion [3][4]. Decliners - Companies like Robinhood and Sea Limited faced declines, with Robinhood decreasing by 2.34% to $824 million and Sea Limited dropping by 1.32% to $894 million [6][7]. - FICO experienced a significant drop of 8.91%, bringing its market cap down to $455 million [7]. Overall Trends - The overall trend indicates a mixed performance across the technology sector, with some companies gaining market value while others are experiencing losses [3][4][5][6].