Core Viewpoint - MercadoLibre Inc. (NASDAQ:MELI) has shown mixed short-term performance with a 5.86% decline over the past month, but a 9.82% increase over the past year, prompting long-term shareholders to consider the company's price-to-earnings (P/E) ratio [1] Group 1: P/E Ratio Analysis - The P/E ratio is a critical metric for evaluating a company's current share price relative to its earnings per share (EPS), helping long-term investors assess performance against historical data and industry benchmarks [3] - A higher P/E ratio suggests that investors expect better future performance, which may indicate overvaluation, but it can also reflect optimism about future growth and rising dividends [3] - MercadoLibre's P/E ratio stands at 49.33, which is significantly lower than the Broadline Retail industry's aggregate P/E ratio of 90.82, potentially indicating that the stock is undervalued or may perform worse than its peers [4] Group 2: Limitations of P/E Ratio - While a lower P/E ratio can suggest undervaluation, it may also imply that shareholders do not anticipate future growth, highlighting the need for a comprehensive analysis [6] - The P/E ratio should not be used in isolation; other financial metrics and qualitative factors, such as industry trends and business cycles, are essential for informed investment decisions [7]

Core Insights - MercadoLibre is recognized as a leading e-commerce and fintech platform in Latin America, often compared to Amazon, with significant growth potential [1][2] Group 1: Growth Performance - In Q3 2025, MercadoLibre's net revenue increased by 39% year over year, reaching $7.4 billion, driven by nearly 35% growth in gross merchandise value (GMV) on a foreign-exchange-neutral basis [4] - The platform serves 77 million unique buyers quarterly, marking a 26% increase from the previous year [4] - Mercado Pago's credit portfolio grew by 83% year over year to $11.0 billion, with a 90-day non-performing loan (NPL) rate improving from 7.8% to 6.8% [5] - Monthly active users of Mercado Pago reached 72 million, with increased usage for everyday payments, savings, and credit [5] - The integration of marketplace, logistics, and payments enhances user engagement and raises switching costs for buyers and sellers [6] Group 2: Profitability Challenges - MercadoLibre's operating margin peaked at 13.5% in Q4 2024 but declined to 9.8% in Q3 2025 [7] - The decline in margins is primarily attributed to increased shipping costs, as the company reduced its free-shipping threshold from 79 reais to 19 reais to boost volumes amid rising competition [8] - Sustained elevated shipping subsidies may be necessary to maintain market position as competitors aggressively compete on price and delivery speed [10]

Group 1 - Wedbush has lowered its price target for MercadoLibre, Inc. from $2,800 to $2,700 while maintaining an Outperform rating on the stock [1][2] - The firm identifies MercadoLibre as a top choice, focusing on competitive dynamics and demand patterns in its primary markets [2] - Increased expenses are anticipated in 2026 due to higher sales and marketing costs and logistical investments [2] Group 2 - MercadoLibre signed a business deal with Agility Robotics to integrate the Digit humanoid robot into its San Antonio, Texas plant, initially focusing on commerce fulfillment tasks [3] - The collaboration aims to explore further applications of AI-powered humanoid robots in logistics operations across MercadoLibre's warehouse system in Latin America [3] Group 3 - MercadoLibre is the largest e-commerce marketplace in Latin America, boasting around 150 million active users and over 600 million active listings [4] - While MercadoLibre shows investment potential, certain AI stocks are considered to offer greater upside potential with less downside risk [4]

Group 1: Market Overview - The S&P 500 has experienced a nearly 18% increase in 2025 and an approximately 80% rise over the past three years, highlighting the attractiveness of investing in this index [1][2] Group 2: Company Highlights - **SoFi Technologies**: A digital bank with a rapid customer acquisition rate, achieving a 38% year-over-year revenue growth in Q3 2025. The stock has risen 79% this year, indicating strong potential for future growth [4][5] - **MercadoLibre**: The leading e-commerce platform in Latin America, with a 49% year-over-year sales increase (currency neutral) in Q3. The company is diversifying its offerings with fintech services, positioning itself for significant growth [7][8] - **On Holding**: A fast-growing activewear brand that competes with major players like Nike and Lululemon. It has high gross margins and a resilient consumer base, suggesting strong expansion potential [9][10] - **Lemonade**: An innovative insurance company leveraging AI and machine learning, with a stock increase of nearly 450% over the past three years. It aims for profitability on an adjusted EBITDA basis by 2026 [13][14] - **Taiwan Semiconductor**: A key player in AI chip manufacturing, benefiting from increased demand as hyperscalers ramp up AI spending. The company is well-positioned for continued growth across various tech applications [15][16]

Core Viewpoint - MercadoLibre (MELI) has shown exceptional performance, with a $10,000 investment growing to $176,000 over the past decade, indicating significant growth potential despite current valuations [1]. Group 1: Company Performance - MercadoLibre's competitive advantage is expanding as it diversifies beyond e-commerce into fintech services, creating a financial super app in a rapidly growing market [3]. - The company reported a 35% year-over-year growth in gross merchandise volume on a currency-neutral basis, leading to a 49% year-over-year revenue growth [5]. - The stock is currently trading at a price-to-sales multiple of 3.8, significantly lower than its 10-year average of 9.8, suggesting solid value for investors [6]. Group 2: Future Growth Potential - Analysts project an annualized revenue growth rate of 21% through 2029, with potential earnings growth of around 38% due to expanding margins [6]. - The ongoing growth trajectory of MercadoLibre positions it as a strong candidate for wealth-building returns for shareholders over the next decade [6].

分组1: MercadoLibre Performance - In Q3 2025, MercadoLibre's net revenue increased by 39% year over year to $7.4 billion, marking the 27th consecutive quarter of over 30% year-over-year growth [2] - The lowered free shipping threshold in Brazil resulted in a 42% year-over-year increase in items sold and a 29% rise in unique buyers in Brazil [1][2] - The company generated approximately $718 million in adjusted free cash flow in the first nine months of 2025 [1] 分组2: Market Position and Strategy - Brazil is the largest market for MercadoLibre, accounting for over half of its total revenues, and the company is focusing on long-term value creation through investments in logistics and free shipping [2] - MercadoLibre has been cash-flow positive since 2007, allowing it to fund its expansion without excessive reliance on external capital [3] - The company handles 95% of its own deliveries through its Mercado Envíos network, providing a competitive advantage in logistics [5] 分组3: Financial Services and Growth Opportunities - The Mercado Pago division has a total credit portfolio of $11 billion as of Q3 2025, reflecting an 83% increase from the previous year, with significant payment volume coming from outside the e-commerce platform [4] - New ventures like digital advertising are expected to enhance overall profitability by leveraging user data [3]

Group 1: Nvidia - Nvidia is the world's largest company by market cap and is experiencing rapid growth, particularly in the AI sector, with expectations of significant capital expenditures in data centers reaching $3 trillion to $4 trillion by 2030, up from $600 billion in 2025 [3][5] - The stock trades at 24 times 2026's earnings, which is considered reasonable given its expected multi-year growth [5][6] - Nvidia's GPUs are in high demand, leading to a sold-out status for cloud GPUs, allowing the company to take orders years in advance [5] Group 2: The Trade Desk - The Trade Desk has faced a challenging year, being the worst-performing company in the S&P 500 for 2025, down approximately 70% [6][8] - Despite a revenue increase of 18% year-over-year in Q3, the company is experiencing slowing growth due to rising competition and issues with its new AI-powered platform, Kokai [8][10] - The stock is currently undervalued, trading at less than 18 times 2026's earnings, presenting a potential for a solid comeback in 2026 [10] Group 3: MercadoLibre - MercadoLibre has shown a 17% increase for the year, which is considered disappointing compared to its historical performance [11][12] - The company is a leading e-commerce and fintech platform in Latin America, combining features of Amazon and PayPal, and is positioned for significant growth in the region [12][15] - The stock is trading at just 15 times free cash flow, making it an attractive buy, especially as it is down over 20% from its all-time high [15]

Core Viewpoint - MercadoLibre (NASDAQ: MELI) is rated as a Buy, with an expected upside of 24% over the next 12 months based on a residual income model [1] Investment Approach - The investment strategies employed include GARP (Growth at a Reasonable Price), Value, and Growth [1] - The analysis closely monitors insider buying and stock buybacks [1] - Technical analysis tools such as Elliott Wave, EMA crossovers, and chart patterns are also utilized [1]

Billionaire Stanley Druckenmiller is pouring millions of dollars into a growth stock listed as a “buy” by some of America’s biggest banks and investment firms.A new 13F filing from Druckenmiller’s Duquesne Family Office reveals the firm bought 4,619 shares of MercadoLibre (MELI) in Q3 2025. The purchase amounts to about $11.09 million and continues a buying spree that began in Q2 2024 amounting to about $101 million and 58,344 shares.MercadoLibre is Latin America’s leading e-commerce and fintech platform, t ...

Scott, let's start with your top picks heading into the year. >> Sure. Thanks for having me.The the four names that we've identified as top picks for the year, Amazon, Meta, Mardo, Libre, and uh Door Dash. We have more overweight ratings than those, but those four really stand out. >> And and talk to us a little bit about why.I mean when you're talking about Meta uh and and others what's the what are the driving forces going into 2026. >> So you have um in in each case you know period of underperformance re ...