Lakehouse Capital, a Sydney-based investment manager, released its “Lakehouse Global Growth Fund” annual investor letter. A copy of the letter can be downloaded here. The year was strong for the fund despite volatility, backed by the new US administration. The fund returned 33.4% net of fees and expenses compared to 18.4% for its benchmark. Since its inception in December 2017, the Fund has returned 254.4% compared to 139.9% for its benchmark, the MSCI All Country World Index, Net Total Returns (AUD). In ad ...

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]

Brown Capital Management, an investment management company, released its “The Brown Capital Management International All-Company Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter started with Liberation Day on April 2, which resulted in a global stock market sell-off. Later, the stock market rallied following a 90-day tariff reprieve. In this environment, international stocks in particular skyrocketed, with the MSCI ACWI ex US index up 12.30% and ...

Group 1 - Financial giants have shown a bearish sentiment towards MercadoLibre, with 45% of traders exhibiting bearish tendencies compared to 27% bullish [1] - A total of 22 unusual trades were identified, with 7 puts valued at $940,837 and 15 calls valued at $790,535 [1] - The average open interest for MercadoLibre options is 94.45, with total volume reaching 165.00, indicating significant trading activity [3] Group 2 - Whales have targeted a price range for MercadoLibre between $2080.0 and $2800.0 over the last 3 months [2] - The current trading price of MercadoLibre is $2474.45, reflecting a decrease of 1.45% [14] - An industry analyst has set an average target price of $2900.0 for MercadoLibre [11] Group 3 - MercadoLibre operates the largest e-commerce marketplace in Latin America, with over 218 million active users and 1 million active sellers [10] - The company generates revenue from various sources, including final value fees, advertising royalties, payment processing, and interest income from lending [11] - Anticipated earnings release for MercadoLibre is in 41 days [14]

Core Insights - MercadoLibre, Inc. is a leading e-commerce company in Latin America, often compared to Amazon due to its significant role in the region's online retail market [1] - Deepak Mathivanan from Cantor Fitzgerald set a price target of $2,900 for MELI, suggesting a potential upside of 16.26% from its current trading price of $2,494.35 [1][5] Company Performance - MercadoLibre's stock is currently priced at $2,494.35, reflecting a 1.37% increase or $33.69, with fluctuations between $2,433.49 and $2,516.65 on the day [3] - Over the past year, the stock reached a high of $2,645.22 and a low of $1,646, indicating significant volatility [3] - The company's market capitalization is approximately $126.46 billion, a fraction of Amazon's market cap [4][5] - The trading volume for the day is 267,652 shares on the NASDAQ exchange, showing active investor interest [4] Comparative Analysis - Amazon has a market capitalization of nearly $2.5 trillion, and despite its longer market presence and higher total returns, MercadoLibre has shown stronger performance during the period both stocks have been traded [2]

Group 1 - The article provides a market analysis focusing on three companies: MercadoLibre Inc, Alibaba Group Holdings Ltd ADR, and Nu Holdings Ltd [1] - It highlights the performance trends and market positioning of these companies within the e-commerce and fintech sectors [1] - The analysis includes financial metrics and growth rates, indicating potential investment opportunities in these companies [1] Group 2 - MercadoLibre Inc is noted for its strong growth in Latin America, with significant increases in user engagement and transaction volumes [1] - Alibaba Group Holdings Ltd ADR is discussed in the context of its recovery strategies post-regulatory challenges, emphasizing its market dominance in China [1] - Nu Holdings Ltd is highlighted for its innovative approach in the fintech space, attracting a growing customer base in Brazil [1]

Core Insights - Mercado Libre has launched a new B2B unit in Argentina, Brazil, Chile, and Mexico, expanding its business beyond the traditional consumer market [1][2] - The company has over 4 million users enabled for wholesale purchases, indicating significant user engagement in this new segment [2] - In Q2, Mercado Libre reported a 34% year-over-year revenue increase, reaching $6.8 billion, with strong growth in both its commerce and FinTech sectors [3] Business Expansion - The new B2B unit is part of a broader strategy to enhance the company's offerings in eCommerce and digital financial services across 18 countries [2][3] - The company is actively pursuing disciplined investments and execution to strengthen its leadership in eCommerce, FinTech, and digital advertising in Latin America [4] Financial Performance - Mercado Libre's revenue growth reflects strong momentum in its business operations, with double-digit growth reported in the second quarter [3] - The company has expanded its free shipping program in Brazil and launched high-impact marketing campaigns for its FinTech unit, Mercado Pago [4] Regulatory Environment - Mexico's antitrust watchdog Cofece has identified that Mercado Libre and Amazon create barriers to competition for sellers but will not impose corrective measures due to uncertainty about consumer benefits [6]

Core Insights - The article emphasizes the importance of value investing in companies with solid long-term potential, highlighting a strategic approach for individual investors [1]. Group 1 - The individual investor has over five years of experience in personal investing and holds a PhD in Economics, indicating a strong educational background [1]. - The investment strategy focuses on identifying value companies, which suggests a preference for stocks that are undervalued relative to their intrinsic worth [1]. - The investor shares knowledge and analysis to support the community of individual investors, reflecting a commitment to educating others in the investment space [1].

Key Points MercadoLibre and Netflix have significantly beaten the market so far this year. Both should benefit from their respective leadership positions in rapidly growing markets. 10 stocks we like better than MercadoLibre › Even amid the volatility caused by President Donald Trump's aggressive trade policies, broader equities are doing pretty well this year, and some companies have performed even better. That's the case with MercadoLibre (NASDAQ: MELI) and Netflix (NASDAQ: NFLX): The former is u ...

MercadoLibre, Inc. (NASDAQ:MELI) is one of the 10 Best NASDAQ Stocks to Buy For Long Term. On September 12, Reuters reported that Mexico’s antitrust watchdog, Cofece, conducted an investigation into the country’s e-commerce market and found that sellers on MercadoLibre, Inc. (NASDAQ:MELI) faced barriers to competition. However, Cofece’s commission could not reach a consensus to take corrective actions against MercadoLibre, Inc. (NASDAQ:MELI). The watchdog decided not to impose sanctions because of uncerta ...