Core Insights - Mercado Libre successfully issued USD 750 million in senior unsecured notes due in 2033, marking its first issuance since achieving Investment Grade status [1] - The transaction was met with strong demand, being oversubscribed by 3.6 times with participation from over 150 institutional investors, indicating robust confidence in the company's strategy and execution [1] - Proceeds from the issuance will be allocated for general corporate purposes, reflecting the company's ongoing cash generation capacity [1]

Core Thesis - MercadoLibre, Inc. (MELI) is positioned as a dominant e-commerce and fintech powerhouse in Latin America, benefiting from a diversified ecosystem that includes an online marketplace, payments platform (Mercado Pago), logistics network (Mercado Envíos), and lending arm (Mercado Crédito) [2][4] Group 1: Business Model and Ecosystem - The interconnected nature of MercadoLibre's businesses creates a self-reinforcing flywheel, where sellers utilize Mercado Pago for payments, and Mercado Envíos optimizes delivery using marketplace data, enhancing efficiency and reducing costs [2][3] - Mercado Crédito extends credit to users based on transaction history, which lowers risk and stimulates commerce, thereby driving a virtuous cycle of growth [3][4] - The company's ability to reinvest profits into its ecosystem supports ongoing growth and strengthens its competitive position, making it a long-term compounder in the digital economy of the region [4] Group 2: Market Position and Growth Potential - MercadoLibre's marketplace dominance, combined with integrated financial services and logistics, provides a unique growth platform that enhances user experience and creates new monetization opportunities [4] - The strong network effects and customer engagement across Latin America position MercadoLibre to benefit from both e-commerce and fintech growth in a rapidly expanding market [4] - Despite a stock price depreciation of approximately 19.85% since previous coverage, the bullish thesis remains intact due to the company's integrated ecosystem and growth potential [5]

Company Overview - MercadoLibre operates a comprehensive digital ecosystem in Latin America, connecting consumers and merchants through its marketplace, payments, and logistics platforms [5] - The company offers various services including e-commerce marketplace, digital payments (Mercado Pago), logistics (Mercado Envios), credit (Mercado Credito), investment products (Mercado Fondo), classifieds, advertising, and online storefront solutions [8] - Revenue is generated from transaction fees, payment processing, fintech services, logistics, advertising, and value-added services for merchants and consumers [8] Financial Performance - As of November 12, 2025, MercadoLibre's stock price was $2,103.91, with a market capitalization of $106.66 billion [3][7] - The company reported a total revenue of $26.19 billion and a net income of $2.08 billion for the trailing twelve months (TTM) [3] - The stock has returned 6.4% over the past year, underperforming the S&P 500 by 6.88 percentage points [7] Investment Activity - Black Swift Group, LLC initiated a new position in MercadoLibre during the third quarter, purchasing 3,405 shares valued at $7.96 million, which represents 1.4% of the fund's $567.49 million in reportable equity assets [2][3] - This marks MercadoLibre's first appearance in Black Swift's reported portfolio for the period ending September 30, 2025 [2] - The addition of MercadoLibre indicates Black Swift's growing interest in e-commerce, complementing its significant position in Amazon [6] Market Position and Challenges - MercadoLibre has experienced significant growth, increasing by more than 7,300% since its IPO in 2007, making it one of the more successful Latin American stocks [9] - The company has faced challenges due to increased e-commerce competition from Amazon and Sea Limited, as well as rising credit exposure concerns [10] - MercadoLibre has turned regional challenges into competitive advantages, such as founding fintech Mercado Pago to address cash-based society issues and creating Mercado Envios to tackle logistics challenges [10]

Core Insights - MercadoLibre has demonstrated exceptional stock performance, gaining 7,400% since its IPO in 2007, significantly outperforming the S&P 500 [1][3] - The company operates primarily in Latin America, focusing on e-commerce and fintech, both of which are experiencing rapid growth [4][10] E-commerce Growth - MercadoLibre started as an online marketplace and has expanded into a fintech business, with both segments showing strong growth [4] - In the third quarter, gross merchandise volume increased by 35% year over year, leading to a 49% rise in revenue [5] - Unique active buyers grew by 26% year over year, indicating successful customer acquisition strategies [6] - Management has improved its value proposition by lowering the free shipping threshold in Brazil, resulting in a record number of new active buyers [7] Fintech Expansion - The fintech segment has evolved from a digital wallet to a comprehensive financial services app, catering to an underbanked population [10] - Total payment volume surged by 54% year over year, with monthly active users increasing by 29% [11] - Assets under management rose by 89% year over year, and the credit portfolio expanded by 83% [12] Investment Outlook - While the stock may not replicate the previous 7,400% gains, it is expected to continue outperforming the market, making it a viable investment opportunity [13]

Core Viewpoint - Baron Fifth Avenue Growth Fund's performance in Q3 2025 lagged behind major indices, with a gain of 5.7% compared to 10.5% for the Russell 1000 Growth Index and 8.1% for the S&P 500 Index [1] Fund Performance - The fund's year-to-date (YTD) performance is up 14.4%, while the Russell 1000 Growth Index and S&P 500 Index are up 17.2% and 14.8%, respectively [1] Key Holdings - MercadoLibre, Inc. (NASDAQ:MELI) is highlighted as a significant stock in the fund's portfolio, despite a one-month return of -10.46% and a 52-week gain of 7.00% [2] - As of December 01, 2025, MercadoLibre's stock closed at $2,064.55, with a market capitalization of $104.667 billion [2] MercadoLibre Performance Analysis - MercadoLibre's shares declined by 10.6% due to macroeconomic and competitive pressures, despite strong quarterly results: GMV increased by 21% year-on-year, total payments volume rose by 39%, and revenues grew by 34% [3] - The decline in MercadoLibre's stock is attributed to a sell-off in Argentine assets, which significantly impacts its revenue, as Argentina accounts for approximately 20% of total revenues and 40% of direct group contribution [3] - The company faces intensified competition from Amazon, which has introduced new promotional rates for sellers in Brazil [3] - Despite these challenges, the company is viewed as well-positioned to capture growth in Latin America's e-commerce and fintech markets due to its scale, brand trust, and ecosystem [3] Hedge Fund Interest - MercadoLibre, Inc. was held by 109 hedge fund portfolios at the end of Q3 2025, a decrease from 116 in the previous quarter [4] - The company reported a 39% year-on-year growth in Q3 2025, but some analysts suggest that certain AI stocks may offer greater upside potential with less downside risk [4]

Core Insights - The podcast discusses the emotional pitfalls of selling stocks too soon, emphasizing that selling good companies prematurely can lead to significant missed opportunities for gains [2][4][12] - Historical examples, such as Netflix and Sea Limited, illustrate how selling decisions based on short-term performance can result in substantial long-term losses [3][5][10] - A framework for evaluating when to sell stocks is proposed, focusing on business fundamentals rather than emotional reactions to market fluctuations [12][14] Emotional Temptations of Selling - Investors often succumb to emotional impulses driven by fear and greed, leading to premature selling of stocks that may recover or grow significantly [2][3] - The pain of perceived losses is more intense than the pleasure of gains, influencing investors to sell stocks that are declining or have appreciated significantly [2][3] Historical Examples of Selling Mistakes - David Gardner's sale of Netflix in 2003 for valuation reasons resulted in a missed opportunity for 26,000% gains had he held onto the stock [3] - Sea Limited was sold in November 2023, missing out on 223% gains, despite logical reasons for selling at the time [5][10] Framework for Selling Decisions - A structured approach to selling stocks is recommended, including evaluating whether the decision is based on business fundamentals, macroeconomic factors, or valuation concerns [12][13] - Key questions to consider include whether the stock has reached a financial milestone or if the business is still aligned with the investor's thesis [12][13][14] Importance of Patience and Long-Term Perspective - Holding onto stocks that have the potential for significant growth can outweigh the risks of short-term volatility [10][11] - The concept of asymmetric returns highlights that the potential upside of successful investments can far exceed the downside risk [9][10] Lessons from Past Sales - The podcast emphasizes the importance of reflecting on past selling decisions to avoid repeating mistakes and to recognize the potential for recovery in previously sold stocks [6][16] - Building a habit of reviewing earnings reports and company fundamentals can help investors resist the urge to sell based on market noise [15][16]

Group 1: MercadoLibre - MercadoLibre is the leading player in the Latin American e-commerce and fintech markets, with a compound annual growth rate exceeding 30% over the past five and ten years [2] - The stock has recently declined approximately 20% from its all-time high due to increased competition from Amazon in Latin America [3] - E-commerce penetration in Latin America is still in the mid-teens as a percentage of total retail sales, indicating significant growth potential [5] Group 2: TransMedics Group - TransMedics Group is innovating the organ transplantation market with its Organ Care System (OCS), which keeps donor organs alive during transport, addressing issues associated with traditional cold storage methods [6][7] - OCS technology allows for over 80% of donor hearts and lungs to be usable, significantly increasing transplant rates compared to cold storage [9] - The company is expanding into Italy in 2026 and developing a version of OCS for kidneys, which could transform the kidney transplant landscape [11] Group 3: Vertex Pharmaceuticals - Vertex Pharmaceuticals holds a dominant position in the cystic fibrosis market with the only approved therapies targeting the disease's underlying cause [12] - The company is also exploring opportunities in other therapeutic areas, including a non-opioid pain drug that is expected to be a blockbuster [13] - Vertex is advancing its pipeline with plans for regulatory submissions for treatments targeting IgA nephropathy and severe Type 1 diabetes, which could address significant patient populations [15][16]

Core Insights - MercadoLibre, Inc. (NASDAQ:MELI) is recognized as one of the best consumer cyclical stocks, being a leading eCommerce firm in Latin America with 94 million unique buyers on its platform [1] Analyst Recommendations - As of November 28th, 18 out of 26 analysts recommend MercadoLibre, Inc. shares as a Buy, with 5 Strong Buy and 3 Hold ratings, and an average price target of $2,847 [2] Recent Analyst Coverage - UBS maintained a Buy rating for MercadoLibre, Inc. on November 24th but reduced the price target from $3,000 to $2,900, previously set on October 22nd and June 2nd, indicating a focus on the firm's ability to sustain margins and growth amid competition [3] Earnings Performance - MercadoLibre's third-quarter earnings reported a net income of $421 million, which fell short of analyst estimates of $481 million [4] AI Integration - The CEO of MercadoLibre expressed excitement about the potential of agentic AI to enhance discovery, service, and productivity, highlighting the launch of a seller assistant and an AI assistant for fintech services [4]

Core Viewpoint - The U.S. stock market is currently trading at a premium P/E ratio compared to global markets, making some overseas stocks, like MercadoLibre, attractive investment opportunities due to their potential for growth [2][3]. Company Overview - MercadoLibre operates as a leading e-commerce platform and financial services provider in Latin America, with a current market cap of $100 billion and a significant presence in countries such as Mexico, Brazil, and Argentina [3][4]. - The company has a history of impressive revenue growth, with total revenue increasing by 49% in constant currency last quarter and nearly 4,000% cumulatively over the past decade [5][6]. Financial Performance - The company has layered financial services through its Mercado Pago subsidiary, which boasts 72 million monthly active users and achieved a 65% year-over-year revenue growth last quarter [5]. - MercadoLibre's trailing earnings before interest and taxes are just over $3 billion, leading to a trailing earnings multiple between 30 and 35 based on its current market cap [9]. Market Potential - E-commerce penetration in Latin America remains low compared to other regions, presenting significant growth opportunities as internet adoption and economic conditions improve [6][7]. - The economic recovery in Argentina, one of MercadoLibre's largest markets, could further enhance growth prospects if ongoing reforms continue to yield positive results [7]. Future Projections - If MercadoLibre achieves $100 billion in revenue with a 20% profit margin in ten years, it could generate $20 billion in earnings, justifying a market cap of $500 billion based on a forward earnings multiple of 25 [11].

Core Viewpoint - The article emphasizes the importance of portfolio diversification and highlights five growth stocks that present significant short-term and long-term investment opportunities beyond artificial intelligence stocks [2]. Group 1: MercadoLibre - MercadoLibre operates an online marketplace across 18 Latin American countries, benefiting from the region's growing e-commerce adoption [3]. - The company reported a 49% year-over-year revenue increase (currency neutral) in Q3 2025, with gross merchandise volume (GMV) rising by 35% [4]. - MercadoLibre is expanding its fintech services, gaining new users rapidly and increasing its credit portfolio, indicating strong growth potential [4][5]. Group 2: Dutch Bros - Dutch Bros operates over 1,000 stores in the U.S. and plans to expand significantly, aiming for 7,000 stores in the future [9]. - The company achieved a 25% year-over-year sales increase in Q3 2025, with comparable sales up by 5.7% and earnings per share rising from $0.11 to $0.14 [9]. - Dutch Bros focuses on speed and friendly service, with a business model primarily consisting of drive-thru locations and mobile ordering [8]. Group 3: On Holding - On has established a premium athletic wear brand, particularly known for its Cloudtec footwear, and is experiencing robust growth despite a challenging market [12][13]. - The company reported a 35% year-over-year revenue increase (currency neutral) in Q3 2025, with a gross margin of 60.6% and a 290% increase in net income [13]. - On is expanding its brand presence through both direct-to-consumer and wholesale channels, indicating potential for significant investor gains [13]. Group 4: Nu Holdings - Nu is a digital bank based in Brazil, serving over 60% of the adult population and expanding into new regions like Mexico and Colombia [14][15]. - The company reported a 39% year-over-year increase in revenue and net income in Q3 2025, with average revenue per active user rising from $11 to $12 [15]. - Nu is pursuing long-term expansion plans, including applying for a bank charter in the U.S., which presents substantial growth opportunities [15]. Group 5: Amazon - Amazon is the largest e-commerce company in the U.S., with a significant market share of around 40%, and is continuously launching new services [17]. - The company’s Amazon Web Services (AWS) is the largest cloud computing provider globally, playing a crucial role in its growth, particularly in AI [18]. - Management sees explosive growth opportunities in AI, indicating that Amazon could be a major long-term winner in this space [18].