Core Viewpoint - MercadoLibre, Inc. (MELI) is experiencing a downtrend, having broken support at the $1,945 level, indicating a potential for further decline [1][4][5]. Group 1: Stock Performance - The stock has been in a downtrend and is likely to continue moving lower after breaking the $1,945 support level [1]. - The $1,945 level was previously a significant support point, indicating strong buy interest [2]. - The recent break of this support suggests that the demand from buyers has diminished, setting the stage for a potential decline [5]. Group 2: Future Support Levels - If the stock continues to trend lower, the next support level is anticipated to be around $1,800, which was a support level in January [6]. - Traders who previously sold at the $1,945 support may look to buy back at the $1,800 level, potentially creating new support if enough buy orders are placed [7].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on MercadoLibre (MELI), and emphasizes the importance of using these recommendations in conjunction with other analytical tools for making investment decisions [1][4]. Brokerage Recommendations - MercadoLibre has an average brokerage recommendation (ABR) of 1.21, indicating a consensus between Strong Buy and Buy, based on recommendations from 17 brokerage firms [2]. - Out of the 17 recommendations, 15 are classified as Strong Buy, which constitutes 88.2% of the total recommendations [2]. Limitations of Brokerage Recommendations - The article highlights that relying solely on brokerage recommendations may not be wise, as studies show limited success in guiding investors towards stocks with the best price increase potential [4]. - Brokerage firms often exhibit a positive bias in their ratings due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [5][9]. Comparison with Zacks Rank - The Zacks Rank, which is based on earnings estimate revisions, is presented as a more reliable indicator of near-term stock price performance compared to ABR [7][10]. - The Zacks Rank is timely and reflects the latest earnings estimates, while ABR may not always be up-to-date [11]. Earnings Estimates for MercadoLibre - The Zacks Consensus Estimate for MercadoLibre's current year earnings has increased by 1.1% over the past month to $47.50, indicating growing optimism among analysts [12]. - The recent change in consensus estimates, along with other factors, has resulted in a Zacks Rank 2 (Buy) for MercadoLibre, suggesting a positive outlook for the stock [13].

Group 1 - The core growth of MercadoLibre is driven by the expansion of its marketplace and the consolidation of its fintech ecosystem, particularly through Mercado Pago, which has evolved from a payments platform [1] Group 2 - Mercado Pago plays a significant role in the company's overall strategy, indicating a strong integration of financial technology within its business model [1]

Core Insights - Mercado Libre is often referred to as the Amazon of Latin America due to its operation in similar categories [1] Company Overview - Mercado Libre operates in e-commerce and related sectors, positioning itself as a leading player in the Latin American market [1] Market Comparison - The company is compared to Amazon, highlighting its significant presence and influence in the region [1]

Group 1 - MercadoLibre experienced significant revenue and gross merchandise volume growth in the fourth fiscal quarter [1] - The growth is supported by strong customer acquisition momentum [1] - The e-Commerce platform is already highly profitable [1]

Core Insights - The S&P 500 has experienced a 2% decline in early 2025, but the market remains volatile with notable winners and losers [1] - Three stocks have significantly outperformed in the first quarter of 2025, with one stock seeing a price increase of 40% [2] Company Performance - Redfin (RDFN) is the best-performing stock, up nearly 40% due to its acquisition by Rocket Companies (RKT), which aims to create an all-in-one real estate platform [3][4] - Rocket Companies originated over $100 billion in loan volume in 2024, indicating strong potential for synergies with Redfin's platform, which attracts about 50 million monthly visitors [4] - MercadoLibre (MELI) has seen a 27% increase in stock price, driven by a strong fourth-quarter earnings report that exceeded expectations [6] - In Q4, MercadoLibre's e-commerce marketplace sold 27% more items, and its payment platform, Mercado Pago, experienced a 33% increase in payment volume [6] - Sea Limited (SE) has gained 23% in 2025, following a remarkable 160% increase in 2024, with all business segments performing better than expected [8][9] - Sea's revenue grew by 39% in Q4, and the company generated $238 million in net income, a significant turnaround from a $112 million loss the previous year [10] Investment Strategy - The company is currently in a wait-and-see mode regarding Redfin, with no immediate plans to sell shares [11] - MercadoLibre remains the largest investment among the three stocks, with plans to continue adding to the position, especially during market fluctuations [13] - Sea Limited is on the watch list for potential future investments due to its impressive turnaround and growth prospects [12]

Core Insights - Louis Stevens is a highly regarded investment analyst with a background as a former U.S. Army engineer officer, holding an MBA and a BA in political science [1] - He has established L.A. Stevens Research, where he manages the LAS Index, a stock basket that has consistently outperformed market indices since its inception [2] Company Overview - L.A. Stevens Research utilizes a proprietary method for selecting stocks, contributing to its strong performance in the investment community [2] - The LAS Index is designed to cater to a diverse audience, including beginners, busy professionals, and experienced fund managers [2]

Company Insights - MercadoLibre (MELI) is currently experiencing solid earnings estimate revisions, indicating a positive outlook from analysts for both short and long-term prospects [3][4]. - Over the past 60 days, earnings estimates for the current quarter have increased from $6.86 per share to $7.82 per share, and for the current year, estimates have risen from $43.76 per share to $47.50 per share [4]. Industry Analysis - The Retail-Wholesale sector, where MercadoLibre operates, has a Zacks Industry Rank of 72 out of 247 industries, suggesting it is well-positioned compared to other segments [2]. - The overall positive trends in the Retail-Wholesale space may benefit companies within the industry, including MercadoLibre, as a rising tide can lift all boats [2].

Core Insights - MercadoLibre (MELI) shares have returned 32.9% over the past 12 months, outperforming the Zacks Retail-Wholesale sector and the Zacks Internet-Commerce industry's growth of 11% and 19.3% respectively [1] - The company has achieved significant milestones in 2024, surpassing 100 million unique buyers and reaching 60 million fintech monthly active users for the first time [2] Investment Plans - MercadoLibre plans to invest $3.4 billion in Mexico in 2025, a 38% increase from the previous year, to enhance technology, logistics, and fintech operations [5] - This investment is expected to strengthen the company's top line by driving higher transaction volumes and improving delivery efficiency [6] Competitive Strategies - MercadoLibre faces rising competition from Amazon and Walmart in Latin America, particularly in Mexico [7] - To counter competition, the company is investing in innovation, enhancing user interface, expanding free shipping, and optimizing inventory supply [8] - The company is also strengthening its advertising business to improve monetization and product visibility [9] Fintech Performance - In 2024, MELI's credit portfolio expanded 74% year-over-year to $6.6 billion, with the credit card segment growing 118% [10] - Assets under management grew 129% to $10.6 billion, driven by the success of the company's yielding account [10] - The company is actively managing credit risk amid rising interest rates and macroeconomic uncertainties [11] Earnings Estimates - The Zacks Consensus Estimate for Q1 2025 earnings is $7.82 per share, revised upward by 13.9%, indicating 15.34% year-over-year growth [12] - The consensus for 2025 earnings is $47.50 per share, up 8%, suggesting 26.03% year-over-year growth [12] Stock Performance - MELI's shares are trading above the 50-day and 200-day moving averages, indicating a potential continuation of the upward trend [13] - The forward 12-month Price/Sales ratio of 3.85 exceeds the Zacks Internet-Commerce industry average of 2.09, reflecting investor confidence in the company's growth potential [15] Future Growth Prospects - The company plans to double its fulfillment centers in Brazil by the end of 2025 and increase same-day delivery capabilities by 40% [17] - MELI is targeting lower-risk customers with larger credit lines to expand market reach, indicating strong long-term growth prospects [17]

Group 1: Market Overview - The S&P 500 is currently down in 2025, presenting a potential buying opportunity as economic uncertainty drives investor fear [1] - Despite market conditions, many companies are performing well and have significant growth opportunities [1] Group 2: MercadoLibre - MercadoLibre stock has increased by 41% over the past year and is the only stock on the list that is up in 2025 [3] - The company operates an e-commerce platform in Latin America, which is still underpenetrated at about 13% compared to 24% in the U.S., benefiting from a growing customer base [4] - Revenue for MercadoLibre increased by 96% year over year in Q4 2024, with gross merchandise volume (GMV) up 56% [4] - The company has developed a fintech infrastructure that supports digital payments, with total payment volume increasing by 49% year over year in Q4 [6] - MercadoLibre is the leading fintech company in three of its four largest markets by monthly active users [6] - The company is positioned for significant growth as it drives a digital revolution in its region [7] Group 3: Shopify - Shopify stock has risen by 25% over the past year, with strong growth and increasing profitability [8] - The company has expanded beyond e-commerce websites to become a full commerce platform, with most sales now coming from payment processing [9] - International sales grew by 33% year over year in 2024, accounting for 30% of total revenue [10] - Shopify has reported seven consecutive quarters of revenue growth of at least 25%, with a free-cash-flow margin reaching 22% in Q4 [11] - The company has substantial long-term opportunities and is rolling out more services in international markets [10][11] Group 4: On Holding - On Holding stock has increased by 45% over the past year, recognized for its unique sneaker soles and growing brand presence [12] - The company reported a 41% year-over-year revenue increase in Q4 2024, driven by a 48% rise in direct-to-consumer sales [14] - On's gross margin expanded from 60.4% to 62.1% year over year in Q4, with net income increasing by 435% [14] - The management has a four-pillar strategy focused on brand awareness, omnichannel strategy, product assortment expansion, and operational efficiency [15]