MercadoLibre (MELI) and eBay (EBAY) are two prominent marketplace stocks, but their approaches to connecting buyers and sellers couldn’t be more different. While both platforms aim to facilitate seamless online commerce, eBay operates as a mature, global player with a long-established user base, whereas MELI is focused on high-growth markets in Latin America, tailoring its ecosystem to local needs. A marketplace’s success depends on how well it serves both buyers and sellers, and these companies are executi ...

Investment Plans - MercadoLibre plans to increase its investment in Brazil by 48%, from 23 billion reais (approximately $3.7 billion) in 2024 to 34 billion reais (approximately $5.8 billion) in 2025, focusing on logistics, technology, marketing, and increasing its staff by 14,000 to a total of 50,000 [1] - The company also announced a $3.4 billion investment in Mexico, its second largest market after Brazil [2] Market Performance - MercadoLibre reported double-digit growth year over year in unique active buyers and items sold, with unique buyers increasing by 24% to 67.3 million and items sold rising by 27% to 525.5 million [3] Strategic Goals - The Chief Financial Officer emphasized the importance of a solid credit card offering to the company's ambition of becoming the largest digital bank in Latin America, indicating continued investment in the platform despite potential short-term margin pressures [4] - MercadoLibre aims to leverage data from its extensive customer base to offer financial products such as loans and insurance, positioning itself as a dominant force in digital banking in the region [4] Digital Engagement in Brazil - Brazil has been identified as a global leader in digital engagement, with the highest number of activity days among consumers in core digital activities such as banking, shopping, and entertainment [5]

Core Viewpoint - MercadoLibre, Inc. (MELI) is experiencing a downtrend, having broken support at the $1,945 level, indicating a potential for further decline [1][4][5]. Group 1: Stock Performance - The stock has been in a downtrend and is likely to continue moving lower after breaking the $1,945 support level [1]. - The $1,945 level was previously a significant support point, indicating strong buy interest [2]. - The recent break of this support suggests that the demand from buyers has diminished, setting the stage for a potential decline [5]. Group 2: Future Support Levels - If the stock continues to trend lower, the next support level is anticipated to be around $1,800, which was a support level in January [6]. - Traders who previously sold at the $1,945 support may look to buy back at the $1,800 level, potentially creating new support if enough buy orders are placed [7].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on MercadoLibre (MELI), and emphasizes the importance of using these recommendations in conjunction with other analytical tools for making investment decisions [1][4]. Brokerage Recommendations - MercadoLibre has an average brokerage recommendation (ABR) of 1.21, indicating a consensus between Strong Buy and Buy, based on recommendations from 17 brokerage firms [2]. - Out of the 17 recommendations, 15 are classified as Strong Buy, which constitutes 88.2% of the total recommendations [2]. Limitations of Brokerage Recommendations - The article highlights that relying solely on brokerage recommendations may not be wise, as studies show limited success in guiding investors towards stocks with the best price increase potential [4]. - Brokerage firms often exhibit a positive bias in their ratings due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [5][9]. Comparison with Zacks Rank - The Zacks Rank, which is based on earnings estimate revisions, is presented as a more reliable indicator of near-term stock price performance compared to ABR [7][10]. - The Zacks Rank is timely and reflects the latest earnings estimates, while ABR may not always be up-to-date [11]. Earnings Estimates for MercadoLibre - The Zacks Consensus Estimate for MercadoLibre's current year earnings has increased by 1.1% over the past month to $47.50, indicating growing optimism among analysts [12]. - The recent change in consensus estimates, along with other factors, has resulted in a Zacks Rank 2 (Buy) for MercadoLibre, suggesting a positive outlook for the stock [13].

Group 1 - The core growth of MercadoLibre is driven by the expansion of its marketplace and the consolidation of its fintech ecosystem, particularly through Mercado Pago, which has evolved from a payments platform [1] Group 2 - Mercado Pago plays a significant role in the company's overall strategy, indicating a strong integration of financial technology within its business model [1]

Core Insights - Mercado Libre is often referred to as the Amazon of Latin America due to its operation in similar categories [1] Company Overview - Mercado Libre operates in e-commerce and related sectors, positioning itself as a leading player in the Latin American market [1] Market Comparison - The company is compared to Amazon, highlighting its significant presence and influence in the region [1]

Group 1 - MercadoLibre experienced significant revenue and gross merchandise volume growth in the fourth fiscal quarter [1] - The growth is supported by strong customer acquisition momentum [1] - The e-Commerce platform is already highly profitable [1]

Core Insights - The S&P 500 has experienced a 2% decline in early 2025, but the market remains volatile with notable winners and losers [1] - Three stocks have significantly outperformed in the first quarter of 2025, with one stock seeing a price increase of 40% [2] Company Performance - Redfin (RDFN) is the best-performing stock, up nearly 40% due to its acquisition by Rocket Companies (RKT), which aims to create an all-in-one real estate platform [3][4] - Rocket Companies originated over $100 billion in loan volume in 2024, indicating strong potential for synergies with Redfin's platform, which attracts about 50 million monthly visitors [4] - MercadoLibre (MELI) has seen a 27% increase in stock price, driven by a strong fourth-quarter earnings report that exceeded expectations [6] - In Q4, MercadoLibre's e-commerce marketplace sold 27% more items, and its payment platform, Mercado Pago, experienced a 33% increase in payment volume [6] - Sea Limited (SE) has gained 23% in 2025, following a remarkable 160% increase in 2024, with all business segments performing better than expected [8][9] - Sea's revenue grew by 39% in Q4, and the company generated $238 million in net income, a significant turnaround from a $112 million loss the previous year [10] Investment Strategy - The company is currently in a wait-and-see mode regarding Redfin, with no immediate plans to sell shares [11] - MercadoLibre remains the largest investment among the three stocks, with plans to continue adding to the position, especially during market fluctuations [13] - Sea Limited is on the watch list for potential future investments due to its impressive turnaround and growth prospects [12]

Core Insights - Louis Stevens is a highly regarded investment analyst with a background as a former U.S. Army engineer officer, holding an MBA and a BA in political science [1] - He has established L.A. Stevens Research, where he manages the LAS Index, a stock basket that has consistently outperformed market indices since its inception [2] Company Overview - L.A. Stevens Research utilizes a proprietary method for selecting stocks, contributing to its strong performance in the investment community [2] - The LAS Index is designed to cater to a diverse audience, including beginners, busy professionals, and experienced fund managers [2]

Company Insights - MercadoLibre (MELI) is currently experiencing solid earnings estimate revisions, indicating a positive outlook from analysts for both short and long-term prospects [3][4]. - Over the past 60 days, earnings estimates for the current quarter have increased from $6.86 per share to $7.82 per share, and for the current year, estimates have risen from $43.76 per share to $47.50 per share [4]. Industry Analysis - The Retail-Wholesale sector, where MercadoLibre operates, has a Zacks Industry Rank of 72 out of 247 industries, suggesting it is well-positioned compared to other segments [2]. - The overall positive trends in the Retail-Wholesale space may benefit companies within the industry, including MercadoLibre, as a rising tide can lift all boats [2].