JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP. He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks. He focuses on identifying growth investing opportunities that present the most attracti ...

Core Insights - Loomis Sayles Global Growth Fund achieved a return of 16.61% in Q2 2025, outperforming the MSCI ACWI Index Net which returned 11.53% [1] - The fund focuses on investing in high-quality businesses with sustainable competitive advantages, particularly those trading at significant discounts to intrinsic value [1] Company Overview: MercadoLibre, Inc. - MercadoLibre, Inc. is the largest online commerce platform in Latin America, offering a comprehensive ecosystem of six integrated e-commerce services [3] - The company reported that commerce and related services accounted for approximately 59% of net revenue, while payments and fintech solutions made up about 41% [3] - As of September 29, 2025, MercadoLibre's stock closed at $2,501.31 per share, with a market capitalization of $126.81 billion [2] Market Position and Growth Potential - MercadoLibre operates in 18 countries, covering a significant portion of Latin American GDP, and has 218 million active users, representing over 45% of the region's estimated 480 million total internet users [3] - The company is well-positioned for sustained growth over the next decade, driven by increasing internet access, credit availability, and ongoing investments to enhance online transaction convenience [3]

Core Insights - MercadoLibre, Inc. (NASDAQ:MELI) is recognized as one of the 12 stocks with consistent growth potential, launching a new B2B unit following strong Q2 results [1][2]. Financial Performance - In Q2 2025, MercadoLibre reported a 30% year-over-year revenue increase, totaling $825 million in income from operations [2]. - The company successfully attracted new users and increased engagement by lowering the free shipping threshold in Brazil [2]. Business Expansion - The launch of a new business-to-business (B2B) unit on September 22, 2025, aims to capture the expanding Latin American market, covering key countries such as Brazil, Argentina, Mexico, and Chile [3]. - The B2B e-commerce market is significantly larger, being four times the size of the global B2C e-commerce market in terms of volume sold [3]. Market Position - MercadoLibre has demonstrated dominant growth in Latin American e-commerce and fintech, achieving an impressive 10-year performance increase of 2269.18% [4]. - Founded in 1999, the company operates a comprehensive ecosystem that includes a marketplace, logistics network, and financial services platform through Mercado Envios and Mercado Pago [4].

Company Performance - MercadoLibre's stock closed at $2,501.31, reflecting a +1.33% change from the previous day's closing price, outperforming the S&P 500's daily gain of 0.26% [1] - Over the past month, shares of MercadoLibre have decreased by 0.18%, underperforming the Retail-Wholesale sector's gain of 0.76% and the S&P 500's gain of 2.87% [2] Earnings Expectations - The upcoming earnings report is anticipated to show an EPS of $9.88, representing a 26.18% increase from the same quarter last year, with projected net sales of $7.17 billion, up 35.05% year-over-year [3] - For the full year, earnings are expected to be $44.43 per share and revenue is projected at $27.78 billion, indicating increases of +17.88% and +33.72% respectively from the previous year [4] Analyst Sentiment - Recent revisions to analyst forecasts for MercadoLibre are crucial as they reflect changing business trends, with upward revisions indicating positive sentiment towards the company's operations and profit generation capabilities [5] - The Zacks Rank system currently rates MercadoLibre at 4 (Sell), with no changes in the consensus EPS estimate over the past month [7] Valuation Metrics - MercadoLibre's Forward P/E ratio stands at 55.56, which is significantly higher than the industry average of 22.36, while its PEG ratio is 1.61 compared to the Internet - Commerce industry's average PEG ratio of 1.47 [8] Industry Context - The Internet - Commerce industry, part of the Retail-Wholesale sector, holds a Zacks Industry Rank of 71, placing it in the top 29% of over 250 industries, indicating strong performance potential [9]

Core Insights - The article provides a market analysis focusing on major indices such as Nasdaq 100 and S&P 500, as well as specific companies like MercadoLibre Inc and Telecom Argentina SA ADR [1] Group 1: Market Indices - Nasdaq 100 and S&P 500 are highlighted as key indicators of market performance, reflecting overall investor sentiment and economic conditions [1] Group 2: Company Analysis - MercadoLibre Inc is discussed in terms of its growth potential and market position within the e-commerce sector, indicating strong performance metrics [1] - Telecom Argentina SA ADR is analyzed regarding its operational challenges and market dynamics, which may impact its future performance [1]

Performance Overview - Baron FinTech Fund rose 9.26% in the quarter ended June 30, 2025, underperforming the FactSet Global FinTech Index which gained 13.82% [3][4] - Since inception, the Fund has achieved a 12.53% annualized return compared to 4.55% for the Benchmark [3][4] Market Conditions - U.S. equity markets experienced gains amid volatility, influenced by President Trump's tariff announcements and subsequent negotiations [5] - The "Magnificent Seven" stocks led the S&P 500 Index gains, appreciating over 20% during the quarter [6] Fund Performance Analysis - Underperformance against the Benchmark was attributed to stock selection in Information Services, Payments, and Tech-Enabled Financials [7] - The Fund's high exposure to Financials, which lagged the broader Index by over 5%, also contributed to underperformance [7] Sector Performance - Information Services faced widespread weakness, particularly from Fair Isaac Corporation and Verisk Analytics due to regulatory pressures and market rotation [8] - Payments sector was negatively impacted by Fiserv's weaker-than-expected earnings and slowing payment volumes [9] - Tech-Enabled Financials saw declines in insurance holdings, reflecting a market shift away from defensive sectors [10] Top Contributors - Robinhood Markets was the largest contributor, benefiting from increased trading activity and new crypto-related products [11][13] - MercadoLibre reported strong results with revenue up 37% and total payment volume up 72% [12][14] - Intuit's shares rose after better-than-expected quarterly results, with revenue growing 15% [15] Top Detractors - Fiserv detracted from performance due to concerns over Clover's payment volume growth [16] - The Progressive Corporation faced investor concerns about premium growth moderation despite strong performance metrics [17] - Clearwater Analytics saw a decline in shares despite solid earnings, as investors sought assurance on integration of recent acquisitions [18] Portfolio Structure - As of June 30, 2025, the Fund held 46 positions, with the top 10 holdings representing 40.9% of net assets [20] - The Fund's investments are segmented into seven themes, with Tech-Enabled Financials at 28.0% and Information Services at 20.9% [21] Recent Activity - The Fund made a new investment in Ategrity Specialty Insurance, focusing on the less competitive E&S market [26][28] - Increased positions in The Charles Schwab Corporation and CME Group were noted due to improving fundamentals and market conditions [29][30] Outlook - The economic outlook has improved, with positive trade developments and stable consumer finance trends supporting the Fund's holdings [33] - The Fund remains focused on investing in competitively advantaged growth companies within the fintech sector [34]

Core Perspective - Investors are increasingly interested in overseas stocks, particularly as the S&P 500 and NASDAQ 100 are near all-time high valuations [1] Group 1: Emerging Market Opportunities - Analysts at Goldman Sachs maintain a bullish outlook on emerging equities, anticipating continued outperformance as global central banks may enter a multi-year easing cycle [2] - A declining dollar index is expected to support overseas valuations [2] - Investors are encouraged to create a watchlist of strong technology companies in emerging markets, such as NIO Inc., MercadoLibre Inc., and Telecom Argentina, which are currently under the radar of major players [3] Group 2: NIO Inc. Analysis - NIO reported a 25% increase in vehicle deliveries, rising from 57,373 units in Q2 2024 to 72,056 units in Q2 2025, indicating growing consumer demand [5] - Despite not yet achieving net profitability, the momentum in deliveries suggests potential for future profitability [6] - NIO's price-to-book (P/B) ratio stands at 18.6x, significantly higher than the auto sector's average of 2.9x, reflecting investor confidence in its future potential [7] Group 3: MercadoLibre Insights - MercadoLibre is the leading e-commerce platform in South America, benefiting from a growing middle class and increasing disposable income in countries like Brazil and Argentina [8][9] - The company is projected to deliver an EPS of $13.79 for Q4 2025, representing a 34% increase from the current EPS of $10.31 [10] - Analysts have set a price target of $2,900 for MercadoLibre, indicating a potential upside of 16% compared to the current consensus price of $2,828.33 [11] Group 4: Telecom Argentina Overview - Telecom Argentina serves 34.6 million active users, covering 74% of the country's population, positioning it as a near-monopoly in the telecommunications sector [14] - The company is expected to benefit from the growth of 5G and fiber technology, which will enhance productivity and profits [13] - Analysts have set a target price of $10.23 for Telecom Argentina, suggesting a 36.2% upside from current levels [16]

Group 1 - Lakehouse Global Growth Fund achieved a net return of 33.4% for the year, outperforming its benchmark which returned 18.4% [1] - Since its inception in December 2017, the Fund has delivered a total return of 254.4%, significantly higher than the benchmark's 139.9% [1] Group 2 - MercadoLibre, Inc. (NASDAQ:MELI) is highlighted as a key holding in the Lakehouse Global Growth Fund, with a one-month return of 0.81% and a 52-week gain of 20.71% [2] - As of September 25, 2025, MercadoLibre's stock closed at $2,492.25, with a market capitalization of $126.351 billion [2] Group 3 - MercadoLibre reported a 38% year-on-year growth in net revenues, reaching US$22.4 billion, with operating margins at 12.9% [3] - The company gained market share in key regions including Brazil, Argentina, and Mexico, with unique active buyers increasing by 25% year-on-year to 67 million [3] - The growth rate in active buyers has accelerated, reaching its highest level since early 2021 [3]

Core Insights - MercadoLibre (MELI) is facing challenges in sustaining its aggressive credit expansion strategy, with signs that rapid lending growth may negatively impact profitability in upcoming quarters [1][4] Group 1: Credit Portfolio and Profitability - The total credit portfolio increased by 91% year over year to $9.3 billion in Q2 2025, but the Net Interest Margin After Losses decreased to 23% from 31.1% a year ago, indicating potential erosion of returns [1][8] - The credit card segment grew 118% year over year to $4 billion, now representing 43% of the total portfolio, up from 37% last year; however, credit cards have lower margins and only recently reached breakeven [2][4] - Provisions for doubtful accounts rose by 57% year over year to $690 million, suggesting that underwriting discipline will be tested as the company expands in volatile markets [2][3] Group 2: Earnings and Economic Environment - Net income for Q2 slipped 1.6% year over year to $523 million, as credit costs offset growth in commerce and payments [3] - Economic uncertainty in Argentina, following corruption charges against President Javier Milei, and Brazil's history of delayed credit card payments add to the challenges for MELI [3][4] Group 3: Competitive Landscape - Regional fintech competition is intensifying, with Sea Limited and Nu Holdings navigating margin pressures; Nu Holdings has maintained stronger credit discipline compared to MELI's aggressive credit card growth strategy [5] - Sustainable lending growth is suggested to depend on balanced risk management, highlighting vulnerabilities in MELI's current approach [5] Group 4: Stock Performance and Valuation - MELI shares have increased by 46.5% year-to-date, outperforming the Zacks Internet–Commerce industry and the Zacks Retail-Wholesale sector, which rose by 12.2% and 8.6%, respectively [6] - The stock is currently trading at a forward 12-month Price/Sales ratio of 3.8X, compared to the industry's 2.26X, indicating a higher valuation [10] - The Zacks Consensus Estimate for 2025 earnings is $44.43 per share, reflecting a 17.88% year-over-year growth, with a Zacks Rank of 4 (Sell) [13]

Core Insights - Brown Capital Management's second quarter 2025 investor letter highlights a significant rally in international stocks, particularly following a 90-day tariff reprieve, with the MSCI ACWI ex US index up 12.30% and the MSCI EAFE index up 12.07% [1] - The strategy outperformed both international equity indexes during this quarter [1] Company Highlights - MercadoLibre, Inc. (NASDAQ:MELI) is identified as a key stock, with a one-month return of 0.81% and a 52-week gain of 20.71%, closing at $2,492.25 per share on September 25, 2025, with a market capitalization of $126.351 billion [2] - MercadoLibre operates as a leading e-commerce platform in Latin America, akin to Amazon, and offers payment and credit services similar to PayPal [3] - The company has a significant market presence in Brazil, Mexico, and Argentina, with about half of its business in Brazil and just under a quarter in each of Mexico and Argentina [3] - MercadoLibre benefits from low e-commerce penetration in Latin America, presenting growth opportunities [3] - The company ships approximately half of its orders with same-day or next-day delivery to over 67 million unique active buyers, creating substantial barriers to entry for competitors [3] - MercadoLibre's fintech services are also highlighted, with 64 million monthly active users utilizing its payment-processing services, credit cards, loans, and savings accounts [3]