Robert Way My Coverage & Thesis Update Back in May 2024, I initiated coverage of MercadoLibre, Inc. (NASDAQ:MELI) stock with a "Buy" rating, calling it "a growth beast at a reasonable price". My argumentation was mainly based on the firm's significant growth I saw in its fintech division, with a credit portfolio exceeding $4.4 million and the issuance of 1.5 million credit cards at the time. I expected a continued contraction of MELI's key valuation multiples amid rising earnings of the business, which ...

MercadoLibre (MELI) has shown impressive resilience and growth, with its share price increasing 25.7% in the past month. This stellar performance underscores investor confidence in the company's strong fundamentals despite broader economic uncertainties.MELI’s gain not only compared favorably with the Zacks Internet-Commerce industry’s decline of 1.6% over the same period but also outpaced the broader Zacks Retail-Wholesale sector and the S&P 500’s returns of 2.6% and 2.7%, respectively.The outperformance c ...

Is it time to get on the bandwagon with these three hot stocks?No one can deny it -- the stock market is on fire. As of this writing, the S&P 500 has closed at an all-time high on 38 occasions this year and is up more than 18% year to date. So, it's no surprise that there are lots of stocks making new 52-week highs. But that doesn't mean it's too late to invest in some excellent stocks. Let's examine three in more depth. WalmartFirst up is Walmart (WMT 0.44%). Up 40% year to date and 42% over the last 12 mo ...

MercadoLibre has filed a complaint with Argentina’s competition regulator, alleging that Argentine banks are using an anti-competitive tactic against the company’s FinTech arm, Mercado Pago.In its legal complaint filed with the country’s National Commission in Defense of Competition, MercadoLibre accused the banks of “illegally concentrating” under one payments platform, Bloomberg reported Monday (Aug. 26).“The 36 banks that are part of the MODO wallet make up a cartel to avoid competing between its own dig ...

Stanley Druckenmiller, a renowned investor with a stellar track record, has made headlines with his family office, Duquesne, selling its position in NVIDIA NASDAQ: NVDA after accurately predicting the AI boom and NVDA's subsequent surge. Druckenmiller first invested in NVIDIA in the fourth quarter of 2022, showcasing his keen market insight. He attributes his success not to intelligence but to disciplined investing, a principle that has served him well.His recent market moves are closely watched, and thanks ...

Investment Thesis - MercadoLibre's stock (NASDAQ:MELI) has seen a 20.5% price increase since early May, outperforming the U.S. stock market's 8% return during the same period [2] - The company reported impressive Q2 earnings, with significant growth across key metrics, indicating strong growth momentum [3][7] - The stock remains attractively valued according to valuation analysis, leading to a "Strong Buy" rating [2] Recent Developments - On August 1, MELI released its quarterly earnings, surpassing consensus revenue and EPS estimates, with revenue growth accelerating by 49% YoY [3] - Adjusted EPS more than doubled from $5.16 to $10.48 [3][4] Latest Quarter's Earnings - Q2 2024 earnings report highlights: - EPS Normalized Actual: $10.48 (Beat by $2.14) - Revenue Actual: $5.07 billion (Beat by $389.51 million) [4] Financial Performance - Cash from operations grew YoY from $1,412 million to $1,882 million, with levered free cash flow reaching approximately $850 million, doubling from the previous year [5] - The balance sheet improved significantly, with a cash pile of $6.9 billion and net cash position rising from $945 million to $1,467 million [5] Growth Metrics - MELI demonstrated strong growth across all products and services, with Commerce and Fintech both showing robust performance [7] - In Commerce, Brazil and Mexico saw over 30% YoY growth in gross merchandise value (GMV), with items sold increasing by 29% and unique buyers by 19% [8] - Fintech's monthly active users grew by 37% YoY, reaching 52 million, and assets under management increased by 86% YoY [10] Market Position - MELI's operations span major Latin American economies, reducing geographic concentration risks, with Brazil's e-commerce market expected to grow at a 14.3% CAGR by 2026 and Mexico's at 12.4% CAGR [12] - The Latin American fintech market is projected to grow at a 29% CAGR by 2030, providing a favorable environment for MELI's growth [12] Profitability - The company improved its net income margin YoY, driven by an increase in the Commerce take rate from 18.4% to 23.5% [13] Valuation Update - MELI's stock has rallied by 59% over the last twelve months, significantly outperforming the broader U.S. stock market [14] - Current valuation ratios indicate that MELI is attractively valued compared to historical averages [14] DCF Analysis - A discounted cash flow (DCF) model suggests a fair value of $185 billion for MELI, indicating an 85% upside potential compared to its current market cap [17]

These stocks could help you build a millionaire-maker portfolio.Cathie Wood is known for her focus on disruptive technology. Her company, Ark Invest, invests in high-growth tech stocks for its exchange-traded funds (ETF), each of which has a specific focus.Not surprisingly, Ark's stocks tend to do better in bull markets but often come with a lot of risk. In general, buying an ETF gives you exposure to a group of stocks and reduces your overall risk. But when most of the stocks are risky, that isn't necessar ...

The stocks have jumped on their earnings report. Here's why they could keep rallying.August has been a rocky month for investors thus far, with a sell-off induced by economic fears and a tough earnings season for a number of popular AI stocks.However, some stocks have passed the earnings test with flying colors and look poised for further gains. Without further ado, keep reading to see these three stocks that look like screaming buys today. 1. MercadoLibreOne of the strongest stocks in the e-commerce sector ...

Stock rises after the signal. The TradePulse Power inflow Signal was triggered at 10:35 am ET.Today, MercadoLibre Inc, (MELI) experienced a Power Inflow, a crucial event for investors who use order flow analytics in their investment strategies. This Power Inflow shifts from a net selling or distribution phase to a net buying or accumulation environment, illustrating a significant inflow that exceeds outflow. Such a change is commonly viewed as a sign of heightened investor confidence and a short-term uptren ...

Great companies are found in every type of market landscape.When it comes to investing in the right companies for your portfolio, you need to ensure you select businesses that you understand and have the competitive advantages, financials, and leadership to drive lasting growth.If you're looking for growth stocks that have what it takes to perform well for investors not just now but over the next five years and beyond, there are multiple contenders to consider. Here are two that look like excellent addition ...