Core Insights - Investing in growth stocks can significantly enhance wealth for retirement, as companies with above-average growth are often in strong competitive positions, leading to compounding returns for shareholders [1] Group 1: Amazon - Amazon has a 37% share of the U.S. e-commerce market in 2023, benefiting from over 200 million Prime members who contribute to repeat purchases, providing visibility for future sales [5] - The company is recognized for its innovative culture, which encourages risk-taking and continuous improvement, essential for maintaining a competitive edge [6] - Amazon Web Services (AWS) generated $112 billion in revenue over the last year, making it the leading cloud services provider, with significant investments in AI driving growth [7] - Cost reduction efforts have increased operating cash flow, with the stock currently trading at 20 times cash flow, compared to its historical average of 27 times [9] Group 2: MercadoLibre - MercadoLibre's stock has increased by 48% this year, outperforming the S&P 500, and the company is well-positioned to benefit from the tech shift in its region [11] - The e-commerce market in its region is underpenetrated, with 85% of retail sales still offline, and MercadoLibre controls about 5% of retail, serving a population of over 500 million [12] - The company’s gross merchandise volume (GMV) increased by 40% year over year, indicating strong growth despite competition [12] - In fintech, monthly active users grew by 31% year over year, and assets under management increased by 103%, leading to higher engagement and a 75% increase in the total credit portfolio [13][14] Group 3: Shopify - Shopify has established itself as a leading e-commerce platform, with revenue increasing by 27% to $2.36 billion in the first quarter, and a net income of $226 million, reflecting a profit margin of nearly 10% [16] - The company’s gross merchandise volume (GMV) rose by 23% year over year, showcasing its strong market position and pricing power [17] - Shopify is investing in AI technologies, such as Shopify Magic, to enhance its service offerings for merchants, further solidifying its reputation in e-commerce technology [18]

Core Insights - 3G Capital's total market value for Q1 2025 is $348 million, a decrease of 2.48% from the previous quarter's $349 million [1][2] - The firm added 5 new stocks, increased holdings in 6 stocks, reduced holdings in 4 stocks, and completely sold out of 5 stocks during the quarter [1][2] - The top ten holdings account for 91.96% of the total market value [1][2] Holdings Summary - The largest holding is Meta (META.US) with 85,000 shares valued at approximately $48.99 million, representing 14.07% of the portfolio [3][4] - Analog Devices (ADI.US) is the second largest holding with 200,000 shares valued at $40.33 million, making up 11.58% of the portfolio [3][4] - Pinduoduo (PDD.US) ranks third with 300,000 shares valued at $35.51 million, accounting for 10.20% of the portfolio [3][4] - MercadoLibre (MELI.US) is fourth with 16,000 shares valued at approximately $31.21 million, representing 8.96% of the portfolio [3][4] - At the fifth position is Atour (ATAT.US) with 1,050,000 shares valued at about $29.77 million, making up 8.55% of the portfolio [3][4] Trading Activity - The firm initiated positions in BBB Foods (TBBB.US), Intuit (INTU.US), Monday (MNDY.US), Workday (WDAY.US), and Klaviyo (KVYO.US) [5][6] - The firm completely exited positions in BILL Holdings (BILL.US), Uber (UBER.US), Broadcom (AVGO.US), Sprout Social (SPT.US), and Affirm Holdings (AFRM.US) [5][6] - The top buys by percentage change in the portfolio include Carvana (CVNA), Analog Devices (ADI), Amazon (AMZN), BBB Foods (TBBB), and Intuit (INTU) [7] - The top sells by percentage change include BILL Holdings (BILL), Uber (UBER), Broadcom (AVGO), and Pinduoduo (PDD) [6][7]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the short term [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score identifies attractive stocks using ratios like P/E, PEG, and Price/Sales, focusing on stocks that are undervalued [3] Growth Score - The Growth Score evaluates stocks based on projected and historical earnings, sales, and cash flow, targeting companies with sustainable growth [4] Momentum Score - The Momentum Score helps investors capitalize on price trends, using metrics like weekly price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines the three Style Scores, providing a comprehensive rating that highlights stocks with strong value, growth, and momentum characteristics [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify stock selection, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [7][8] - There are over 800 stocks rated 1 or 2, making it essential for investors to filter through these options effectively [8] Stock Example: MercadoLibre (MELI) - MercadoLibre is a leading e-commerce platform in South America, holding a 3 (Hold) Zacks Rank and a VGM Score of B [11] - The company has a Momentum Style Score of A, with shares increasing by 18.7% in the past four weeks, and an upward revision in earnings estimates for fiscal 2025 [12] - MELI's average earnings surprise stands at 22.6%, making it a noteworthy option for investors [12]

Core Insights - The social commerce market in Latin America is projected to grow by 20.1% annually, reaching approximately USD 14.62 billion in 2025, following a robust growth period from 2021 to 2024 with a CAGR of 27.0% [2][10] - By the end of 2030, the market is expected to expand to around USD 27.92 billion, indicating a continued growth trajectory with a forecasted CAGR of 13.8% from 2025 to 2030 [2][10] Market Dynamics - The report provides a comprehensive analysis of social commerce in Latin America, including over 50 KPIs that cover market size, forecasts, and share statistics across various retail categories [3][4] - Increased internet and smartphone penetration has significantly boosted social commerce activities, with consumers increasingly purchasing products directly through social media platforms [10][11] Technological Integration - The integration of fintech solutions is enhancing social commerce transactions, exemplified by Brazil's Pix payment system, which has gained popularity for its instant and free transaction settlements [8][10] - E-commerce platforms are incorporating social commerce features to improve user engagement, with Mercado Libre leading the way in this integration [8][11] Influencer Marketing - Influencer marketing is a key driver of social commerce growth, as brands collaborate with local influencers to promote products through social media, leveraging the trust consumers place in these influencers [13][14] - The effectiveness of influencer marketing is expected to increase as social media usage rises, prompting more brands to invest in these partnerships [13][14] Competitive Landscape - MercadoLibre has established itself as a dominant player in the region's e-commerce and fintech sectors, integrating social commerce functionalities to enhance user engagement and market reach [11][12] - Regulatory changes, such as Brazil's mandate for Apple to lift restrictions on in-app payment methods, are fostering a more competitive environment in the digital goods and services market [14] Future Outlook - Companies are anticipated to adopt AI and machine learning technologies to enhance user experiences and operational efficiency, with MercadoLibre already utilizing these technologies to support sellers [14] - The convergence of e-commerce and social media is expected to strengthen, with platforms like Mercado Libre enhancing integrated shopping experiences to capture a larger market share [8][10]

A company named MercadoLibre (MELI 0.52%) is the largest e-commerce platform in Latin America, doing business in major economies such as Argentina, Brazil, Mexico, and Colombia. But it's far more than just an e- commerce company. It's an interesting combination of business segments and these parts work together to form a powerful growth engine. In 2024, MercadoLibre grew its total net revenue by a little more than 37% to $20.8 billion. Growth at this scale is impressive. And the company also did it in style ...

Core Viewpoint - The fintech market is projected to grow significantly, with MercadoLibre (MELI) and Block (XYZ) positioned to capitalize on this growth, although they face different challenges and opportunities [2][20]. Group 1: MercadoLibre (MELI) - MercadoLibre's fintech arm, Mercado Pago, reported over 64 million monthly active users, growing at more than 30% year over year, indicating strong user acquisition and engagement [3]. - The company's credit portfolio expanded by 75% year over year, with Brazil experiencing record low credit card first payment defaults due to improved scoring models [4]. - Mercado Pago has enhanced its integration within the MercadoLibre ecosystem, undergoing a rebranding to provide a more specialized digital banking experience [5]. - To strengthen its deposit base, Mercado Pago offered an attractive 120% of Brazil's CDI rate through loyalty-linked programs, boosting awareness and positioning as a leading digital bank [6]. - The Zacks Consensus Estimate for MELI's 2025 earnings is $47.92 per share, indicating a 27.14% year-over-year increase, with revenues expected to grow by 27.67% to $26.53 billion [17]. Group 2: Block (XYZ) - Block's Cash App showed a 10% year-over-year increase in gross profit, with gross profit per monthly transacting active user reaching $81 [7]. - The company received FDIC approval for its in-house bank, Square Financial Services, to issue consumer loans, which is expected to enhance unit economics [7]. - Despite these strengths, Cash App's gross profit fell short of internal expectations due to weaker inflows and discretionary spending, leading to a revised full-year guidance of 12% gross profit growth for 2025, approximately $9.96 billion [9]. - The Zacks Consensus Estimate for XYZ's 2025 earnings is $2.72 per share, reflecting a 19.29% year-over-year decrease, with revenues projected to grow by only 3.54% to $24.98 billion [18]. Group 3: Price Performance and Valuation - Year-to-date, MELI shares have increased by 47.2%, while XYZ shares have decreased by 35.3%, with MELI benefiting from strong earnings reports [11]. - In terms of Price/Cash Flow, Block shares trade at 25.87X, compared to MELI's 17.07X, making MELI more attractive as a high-growth stock [14].

Market Capitalization Changes - Tesla's market capitalization increased by 6.75% to $1,025.4 billion [3] - TSMC's market capitalization rose by 5.93% to $969.7 billion [3] - Tencent's market capitalization grew by 4.66% to $609.8 billion [3] - Netflix's market capitalization decreased by 2.65% to $472.3 billion [3] - Oracle's market capitalization increased by 4.58% to $440.8 billion [3] Notable Performers - Shopify saw a significant increase of 13.7% in market capitalization, reaching $136.2 billion [4] - AppLovin experienced a remarkable rise of 89% to $1.177 billion [4] - AMD's market capitalization increased by 5.13% to $175.3 billion [5] - Uber's market capitalization rose by 6.39% to $184.2 billion [5] Decliners - Pinduoduo's market capitalization fell by 6.14% to $165.2 billion [4] - Xiaomi's market capitalization decreased by 2.11% to $163.4 billion [4] - Spotify's market capitalization declined by 4.23% to $127.3 billion [4] Other Companies of Interest - Adobe's market capitalization increased by 3.3% to $168.7 billion [4] - Qualcomm's market capitalization rose by 4.78% to $167.0 billion [4] - Intel's market capitalization increased by 3.55% to $96.7 billion [5] - Airbnb's market capitalization grew by 5.64% to $828 million [5]

Company Performance - MercadoLibre has shown impressive performance with a revenue increase of 64% and gross merchandise volume growth of 40% [5] - Unique buyers increased by 25% year over year, contributing to the growth in gross merchandise volume [4] - The operating margin expanded from 12.2% to 12.9%, indicating improved profitability [5] Market Opportunities - The company holds only 5% of the total retail market in Latin America, suggesting significant growth potential as e-commerce penetration increases [9] - The offline retail market still dominates at 85%, providing a large opportunity for MercadoLibre to capture more market share [9] - The fintech sector is also expanding, with assets under management increasing by 103%, indicating strong engagement in financial services [8] Strategic Initiatives - MercadoLibre has launched the Mercado Play App, which offers 15,000 hours of free content and is expected to drive growth in advertising revenue [10] - The company is focusing on groceries, which increased by 65% year over year, enhancing customer retention and repeat purchases [6] - Management is exploring deeper involvement in streaming and full banking services, with plans for a bank charter in Mexico [12] Stock Valuation - Following the strong first-quarter results, MercadoLibre's stock has risen 42% in 2025, outperforming the broader market [13] - The stock trades at a forward P/E ratio of 36 and a price-to-free cash flow ratio of 17, which are considered reasonable for a high-growth stock [13] - The company has a proven track record, substantial cash reserves, and increasing profits, making it an attractive investment option [14]

Core Viewpoint - Analysts from Goldman Sachs have adopted a bullish stance on MercadoLibre, indicating potential growth opportunities in the e-commerce sector, particularly in the context of trade tariffs affecting other companies like Alibaba and Amazon [2][3][10]. Company Overview - MercadoLibre Inc. (NASDAQ: MELI) is a leading player in the Latin American e-commerce market, benefiting from its strong position amid trade tariff uncertainties [3][6]. - The company reported over 100 million annual unique buyers, which serves as a significant foundation for financial growth [8]. Financial Performance - MercadoLibre's gross market value (GMV) grew by 8% over the past 12 months, reaching $14.5 billion for Q4 2024 [9]. - The company reported quarterly revenue of $6.1 billion, marking a 37% increase compared to the previous year, indicating strong growth potential [9]. - Analysts forecast a 12-month stock price target of $2,504.67, suggesting a 2.13% upside from the current price of $2,452.53 [10]. Analyst Ratings and Predictions - Goldman Sachs has reiterated a Buy target with a valuation of $2,750 for MercadoLibre, reflecting confidence in the company's future performance [10]. - Barclays analysts have also issued an Overweight rating with a higher valuation of $3,100 per share, indicating a potential 30% upside from current prices [11][12]. - Analysts predict earnings per share (EPS) could reach $10.15 for Q3 2025, a 30% increase from the current EPS of $7.82, aligning with the optimistic outlook from both Goldman and Barclays [12].

Core Insights - MercadoLibre has experienced a significant stock increase of 42% in the early months of 2025, making it the largest stock position in the portfolio of the analyst [1] - The company has shown strong performance due to two consecutive excellent earnings reports, reversing previous concerns about profitability [3][4] Financial Performance - The fourth-quarter report highlighted impressive revenue growth during the holiday season, alleviating margin concerns [4] - In the first quarter of 2025, the e-commerce marketplace sold 28% more items year-over-year, while total payment volume (TPV) increased by 43% [5] - The credit portfolio grew by 75% to $7.8 billion, and operating margin expanded by 70 basis points compared to the first quarter of 2024 [5][6] Future Growth Catalysts - The e-commerce marketplace and Mercado Pago payment platform are still in early stages of growth in key markets, indicating potential for further expansion [7] - The credit card segment presents a significant opportunity, with current adoption rates in Brazil being low despite recent growth [8] - The MELI+ subscription service and advertising revenue are also identified as areas for potential high-margin growth, with ad revenue increasing by 50% year-over-year [8] Valuation Perspective - Despite the stock's recent rise, it is considered a better value today compared to previous years, with improved profitability and lower P/E ratios [7][10] - Key growth rates are accelerating, with total payment volume growth in the first quarter of 2024 being 35%, which is now eight percentage points slower than the current rate [9]