Pricing power is one of the best qualities to look for in a business. It means a company's product is so valuable to customers that it can raise prices without losing demand. Over time, that kind of leverage helps companies stay profitable during rough economic patches. Two consumer-facing leaders showing that kind of strength today are MercadoLibre (NASDAQ: MELI) and Chipotle Mexican Grill (NYSE: CMG). Here's why. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 1 ...

Group 1 - MercadoLibre (MELI) presents an investment opportunity despite recent performance volatility, primarily influenced by the market environment [1] - The company has continued to advance significantly, indicating resilience and potential for growth [1] Group 2 - The analyst has extensive experience in researching various industries, including commodities and technology, which may provide valuable insights into investment opportunities [1] - The focus has shifted to a value investing-oriented platform, highlighting a commitment to thorough company analysis [1]

Group 1 - NVDA was picked at $8.78 in 2020, resulting in a nearly 1300% return on that trade [1] - The Long Term Growth Portfolio has increased by nearly 194% since 2018, driven by a disciplined strategy and risk-aware execution [1] Group 2 - MercadoLibre (MELI) is recognized as a high-quality business with strong competitive advantages and excellent financial performance [2] - The management team of MercadoLibre is considered the best in Latin America, with significant growth potential in the coming years [2] Group 3 - Andres Cardenal, CFA, has over 25 years of experience in investment research and strategy development, focusing on growth and tech stocks [3] - The Data Driven Investor provides evidence-based insights, including options ideas for short-term income, quantitative stock strategies, macro analysis, and tactical ETF strategies [3]

Group 1: Market Overview - Global equity markets showed strong performance in Q4 2025, supported by easing inflation and positive economic data [1] - The Hardman Johnston Global Equity Strategy achieved a return of 2.91%, while the MSCI AC World Net Index gained 3.29% [1] - The Financials and Consumer Staples sectors contributed positively to the strategy's performance, whereas the Industrials and Consumer Discretionary sectors detracted from it [1] Group 2: Company Focus - MercadoLibre, Inc. - MercadoLibre, Inc. (NASDAQ:MELI) was identified as a significant detractor in the fourth quarter, with shares trading between $1,723.90 and $2,645.22 over the past year [2] - As of January 26, 2026, MercadoLibre's stock closed at $2,212.62, reflecting a one-month return of 9.49% but a three-month decline of 3.38% [2] - The company has a market capitalization of $112.174 billion [2] Group 3: Competitive Landscape - Increased competitive pressure from Amazon has impacted MercadoLibre's performance, particularly in the Consumer Discretionary sector [3] - Amazon's new initiatives, including promotions on fulfillment fees and reduced commissions for new merchants, pose challenges to MercadoLibre [3] - Despite the competition, MercadoLibre's strong logistics network and ecosystem advantages are expected to maintain its leadership position in Brazilian e-commerce [3] Group 4: Strategic Investments - MercadoLibre is committed to reinvesting in its core offerings, which includes lowering free shipping thresholds and expanding its credit card portfolio [3] - These investments are anticipated to weigh on near-term margins but have historically strengthened the company's competitive position [3]

Company Overview - MercadoLibre operates a leading e-commerce and fintech platform in Latin America, integrating online marketplaces, digital payments, and logistics solutions [6] - The company has a market capitalization of $108.35 billion, with a revenue of $26.19 billion and a net income of $2.08 billion [4] - As of January 23, 2026, the share price was $2,137.29, reflecting a 16.9% increase over the past year, outperforming the S&P 500 by 3.85 percentage points [7] Recent Developments - On January 26, 2026, Generali Powszechne Towarzystwo Emerytalne disclosed an increase in its stake in MercadoLibre by 5,030 shares, valued at approximately $10.57 million [2] - This transaction raised Generali's total position in MercadoLibre to 5.2% of its reportable 13F assets under management [7] - The fund's MercadoLibre position increased in value by $6.88 million due to additional purchases and share price changes [2] Financial Performance - MercadoLibre's revenue for the first nine months of 2025 was $20 billion, representing a 37% growth compared to the previous year [11] - The company's P/E ratio has fallen to 53, which is considered relatively low compared to Amazon's historical valuations [11] - Despite concerns about increasing competition in e-commerce, MercadoLibre has maintained rapid revenue growth and operational resilience [10][11] Competitive Landscape - MercadoLibre faces competition from major players like Amazon, which has raised concerns among investors regarding its growth rate [7] - The company has successfully navigated political and economic challenges in the region, turning them into business opportunities [10] - Its diversified ecosystem supports sustained growth across multiple high-potential markets [6]

Core Insights - Latin American stocks have experienced a significant rally over the past 12 months, with the iShares Latin America 40 ETF (ILF) increasing by 64% year-over-year, outperforming other markets [1] Group 1: Market Performance - The iShares Latin America 40 ETF (ILF) has shown a remarkable performance, rising 64% from a year ago [1]

Core Viewpoint - The recent operations by the Trump administration in Venezuela have significantly impacted the global geopolitical landscape, leading to potential changes in U.S. interventionist policies in Latin America [1]. Group 1: Geopolitical Impact - The Trump administration's actions in Venezuela are stirring the geopolitical order globally [1]. - Companies in Latin America are facing the possibility of increased interventionist policies from the United States [1]. Group 2: Industry Insights - Gary Alexander has extensive experience in covering technology companies on Wall Street and working in Silicon Valley, contributing to his insights on industry trends [1]. - He has been a contributor to Seeking Alpha since 2017 and has been quoted in various web publications, indicating his influence in the investment community [1].

Core Insights - MercadoLibre is positioned to dominate the e-commerce and fintech landscape in Latin America, drawing comparisons to Amazon's growth trajectory in North America [1] - Amazon remains unmatched in global e-commerce size and scale, with diversified revenue streams including AWS and advertising [2] - MercadoLibre is experiencing significant growth, particularly in its fintech arm, Mercado Pago, which has seen a 29% year-over-year increase in monthly active users and an 83% growth in its credit portfolio [5] Company Performance - Amazon's stock has underperformed the S&P 500 over the past year and five years, indicating a potential shift from a growth stock to a value stock as the business matures [3] - MercadoLibre's market capitalization stands at $105 billion, with a current price of $2076.83 and a gross margin of 45.14% [4] - Mercado Pago's user base has reached 72 million monthly active users, reflecting the region's increasing adoption of digital banking and e-commerce technology [5] Market Trends - Latin America is identified as the fastest-growing e-commerce market globally, leading to an increase in digital payment methods among consumers [7] - MercadoLibre has maintained 27 consecutive quarters of growth above 30% year-over-year, highlighting its strong market position [6]

Group 1: Realty Income - Realty Income, a real estate investment trust (REIT), has not recovered from the pandemic sell-off and is currently trading at a near 25% discount from its all-time high [2][4] - The company has approximately 15,500 single-tenant commercial properties with an occupancy rate of nearly 99%, and it continues to expand through acquisitions and development [4] - Realty Income's monthly dividend has increased annually since 1994, currently at $3.24 per share, resulting in a dividend yield of 5.3% [5] - The stock trades at 14 times its funds from operations (FFO) income of $4.20 per share, indicating potential value [5] - Falling interest rates may reduce interest expenses, allowing for more capital to be invested in expansion, which could attract more investors [6] Group 2: MercadoLibre - MercadoLibre has historically provided significant returns through its e-commerce, fintech, and logistics services in Latin America, even during economic turmoil [7] - Recently, the stock has faced challenges due to increased e-commerce competition and a 58% rise in provisions for doubtful accounts, leading to a 20% discount from its 52-week high [8][9] - Despite these challenges, revenue grew by 37% in the first three quarters of 2025, with potential economic improvements in Argentina and Venezuela further supporting growth [10] - The company's P/E ratio stands at 52, significantly higher than the S&P 500 average of 31, suggesting that a recovery in stock price is plausible as revenue growth may accelerate [11]

Core Viewpoint - MercadoLibre, Inc. (NASDAQ:MELI) is currently viewed as one of the best stocks to buy, with a strong analyst sentiment supporting its growth potential driven by AI advancements and platform efficiencies [1][2]. Analyst Sentiment - Over 90% of analysts are bullish on MercadoLibre, setting a consensus price target of $2,800, indicating an upside potential of 28.50% [2]. - Cantor Fitzgerald highlighted that the global internet stocks, including MercadoLibre, are entering a golden age of AI synergy, with the sector outperforming the Nasdaq by approximately nine points in 2025 [3]. - Wedbush has reduced its price target for MercadoLibre from $2,800 to $2,700 while maintaining an 'Outperform' rating, citing increased spending in logistics and marketing for 2026 [4]. Company Overview - MercadoLibre operates as Latin America's leading e-commerce and fintech ecosystem, facilitating digital commerce, payments, logistics, and credit across multiple countries [5]. Market Trends - The investment landscape is shifting towards AI-enabled efficiencies, with MercadoLibre identified as a key player capable of accelerating revenue growth through these advancements [3].