Group 1: OpenAI Valuation and Industry Context - OpenAI has reached a valuation of $500 billion, making it the largest private company, up from $300 billion a few months ago [1] - This rapid valuation growth is notable as it took Microsoft 40 years to reach a similar valuation, while OpenAI achieved it in just 10 years [2] - OpenAI's founder, Sam Altman, projects a need for 250 gigawatts of electricity by 2033 to power its data centers, which is significantly higher than the largest nuclear power plant's output [2][3] Group 2: Berkshire Hathaway's Acquisition - Berkshire Hathaway is acquiring Occidental Petroleum's petrochemical unit OxyChem for approximately $9.7 billion, which represents about 1% of Berkshire's market cap [4][6] - Berkshire already owned about 27% of Occidental, making this acquisition more of a strategic move rather than a significant cash outflow [5] - The acquisition is seen as beneficial for both Berkshire and Occidental, allowing Occidental to buy back stock and reduce debt [6] Group 3: Government Shutdown Impact - The current government shutdown has not significantly affected the stock market, with the NASDAQ remaining flat and the S&P 500 down only slightly [8] - Historically, the average return of the S&P 500 12 months after a government shutdown is around 12%, indicating that such events may not have long-term negative effects [11] - Companies that rely heavily on government contracts may be more vulnerable to the shutdown's impacts, but the general market sentiment appears to be calm [9][10] Group 4: Fair Isaac Corp (FICO) Developments - Fair Isaac Corp's stock surged 24% following the announcement of a direct license program that allows mortgage originators to calculate and distribute FICO scores directly [11][12] - This move is expected to enhance FICO's margins and competitiveness against credit bureaus like Equifax and Experian, whose stocks fell in response [15] - FICO has historically performed well, with a 2,000% increase in stock value over the past decade, compared to 250% for the S&P 500 [12][13] Group 5: Investment Opportunities - Mercado Libre is highlighted as a potential investment opportunity due to its significant growth potential in Brazil, where it has around 40 million active buyers [18] - Etsy is also noted for its recent partnership with OpenAI to enhance customer engagement through AI-powered shopping features [19] - Curtiss-Wright is identified as a company that could benefit from the renewed interest in nuclear power, supplying essential components for nuclear reactors [21]

MercadoLibre has long been seen as the Amazon of Latin America -- but it's increasingly clear that its story is more complex.When investors think about MercadoLibre (MELI -0.73%), the story has always sounded straightforward: a dominant e-commerce and fintech platform with enormous growth potential in Latin America. The company has been called the "Amazon" of the region, and for years, that comparison worked.But the latest results suggest a more nuanced reality. Growth is still strong, yet profitability is ...

Core Insights - MercadoLibre (MELI) shares have declined 13% over the past three months, underperforming the Zacks Retail-Wholesale sector and the Zacks Internet-Commerce industry's growth of 3.4% and 5.7% respectively [1][9] Financial Performance - MELI's fintech arm, Mercado Pago, saw revenues jump 40% year over year in Q2 2025 to $2.95 billion, while commerce revenue grew 22% [5] - Total payment volume increased 39% to $64.6 billion, and the credit portfolio surged 91% year over year to $9.3 billion, raising concerns about asset quality [5][6] - Non-performing loans over 90 days remained high at 18.5%, and net interest margin after losses fell to 23% from 31.1% year over year [6] Competitive Landscape - Rising competition from Amazon, Sea Limited, and eBay is testing MELI's leadership in Latin America [10][12] - Amazon is expanding its logistics and delivery network, while Sea Limited's Shopee platform is gaining traction through discounts and gamified engagement [10][11] - eBay's expansion of its cross-border marketplace is drawing merchants away from MELI, intensifying competition [12] Geographic Concentration - MELI earns over 90% of its revenues from Brazil, Argentina, and Mexico, making it vulnerable to regional volatility and currency shocks [9][13] - In Brazil, FX-neutral gross merchandise volume grew 29% year over year in Q2 2025, while revenues for Q3 2025 are estimated at $3.62 billion, up 17.4% year over year [14] - Argentina's economic struggles led to a $117 million foreign-exchange loss in Q2 2025, impacting profitability [15] Valuation and Outlook - MELI's forward P/E stands at 36.63X, significantly above the industry average of 24.74X and the broader Retail-Wholesale sector's 24.9X, indicating a premium valuation [9][16] - The Zacks Consensus Estimate for Q3 2025 earnings is pegged at $9.88 per share, reflecting a year-over-year growth of 26.18% [19] - Despite top-line growth, profitability pressures and an overstretched valuation make the stock unattractive at current levels, justifying a Zacks Rank 4 (Sell) [21]

Core Viewpoint - US stocks have experienced significant growth, leading to a strong third quarter, prompting investors to explore opportunities in international and emerging markets, which have shown a rebound, particularly in technology sectors [1][2]. Emerging Markets Overview - Emerging markets, particularly in technology, are gaining investor interest after a long period of underperformance compared to the US market [4][19]. - The EMQQ ETF, which tracks emerging market technology companies, has risen approximately 34% this year, indicating a shift in investor focus [1][19]. Latin America Insights - Latin America is highlighted as a key area of growth, with companies like Marcato Libre and New Bank leading the charge [5][8]. - Marcato Libre is recognized as the largest and best-performing company in Latin America, likened to Amazon for its extensive e-commerce and financial services [8][9]. Consumer Growth in Emerging Markets - The rise of 6.5 billion new consumers in emerging markets, particularly through the adoption of affordable smartphones and internet access, is seen as a major growth driver [6][7]. - Latin America's population of 650 million is noted for its relatively higher GDP compared to other emerging regions, positioning it as a more developed market [7]. Political and Governance Considerations - Despite political instability in regions like Argentina and Brazil, the rapid adoption of technology and online services is expected to mitigate some risks associated with governance issues [10][11]. - Emerging market internet companies are viewed as having higher corporate governance standards, which may provide a safer investment avenue compared to traditional emerging market indexes [12][13]. India as a Growth Opportunity - India is identified as a significant opportunity within emerging markets, boasting the largest population and favorable demographics that drive consumption [14][16]. - The digitization of India's financial system and the availability of low-cost smartphones are seen as catalysts for growth in internet companies [15][16]. Future Outlook - There is a strong belief in continued growth in the emerging markets internet sector over the next 3 to 5 years, with increasing investor interest noted [18][19]. - Despite a historical underperformance, the momentum for emerging markets is expected to persist, with a notable increase in ETF flows this year [20][21]. Chinese Market Dynamics - Chinese internet companies have experienced volatility but are recognized for their profitability and advancements in AI, suggesting potential for future growth despite past challenges [24][25].

Investors can't make good investment decisions by only looking at a stock's price.When some investors look at shares of MercadoLibre (MELI -3.18%) trading at close to $2,200, they see an expensive stock. But I see one of the best bargains on the entire stock market for long-term investors.One of the very first lessons an investor must learn is that the price per share doesn't matter without crucial context: How many shares are there?Imagine with me for a moment that there were only 10 shares of MercadoLibre ...

Core Insights - Mercadolibre (MELI) has become a focal point amid recent market volatility, with its stock price dropping by 3.29% on October 3 [1] - The decline in Mercadolibre's stock price is influenced by eBay's announcement to sell 5.5 million shares, expected to raise over $1 billion, which increases market supply pressure [1] - Despite recent fluctuations, Mercadolibre's stock has risen by 39.96% since the beginning of the year, prompting investors to reassess the stock's value [1] Market Dynamics - eBay's share sale eliminates any potential acquisition premium, contributing significantly to the stock price decline [1] - The strong upward trend in Mercadolibre's stock typically leads to natural price corrections as investors reevaluate the company's value [1] - Broader economic data, industry trends, and global events continue to impact stock price volatility [1] Investor Considerations - Investors are advised to remain calm in the face of short-term market instability caused by the recent share sale [1] - The stock price correction may not indicate a deterioration in the company's fundamentals but rather a reassessment of its intrinsic value [1] - Monitoring the company's financial reports and industry dynamics is essential for identifying potential positive factors [1]

Core Insights - MercadoLibre is experiencing a 10% decline in stock value due to increased competition from Amazon in Brazil, its largest market [1][2] - Amazon's aggressive strategy includes waiving logistics fees and take rates for new Brazilian merchants during the holiday season [2] - Despite the competition, MercadoLibre's strong logistical network and diverse fintech solutions position it well in the market [4][5] Competitive Landscape - Amazon is expanding aggressively in Brazil, but it is still considered an underdog compared to its dominance in the U.S. [3] - MercadoLibre has a robust ecosystem that includes e-commerce and fintech, making it difficult for competitors to disrupt its business [4][5] - Other competitors like Walmart, Costco, Sea Limited's Shopee, and Chinese companies such as Shein and PDD Holding's Temu are also entering the Latin American market [6][7] Market Potential - Latin America is viewed as a promising growth area for e-commerce, indicating that competition will continue to intensify [5] - MercadoLibre has shown significant growth over the past decade, being described as a "24-bagger," highlighting its potential for future growth [5]

Core Points - Mercadolibre's stock price increased by 3.20% on October 2, despite hitting a new low since April 2025 earlier in the day [1] - eBay announced the sale of a significant portion of its Mercadolibre shares, totaling 5.5 million shares, which is expected to raise over $1 billion, adding supply pressure to the market and contributing to the stock's decline [1] - Despite recent volatility, Mercadolibre's stock has risen by 39.96% since the beginning of the year, prompting investors to reassess the stock's value [1] Company Performance - The recent stock fluctuations are influenced by economic data, industry trends, and global events, which continue to play a role in stock price volatility [1] - The large-scale share sale by eBay has introduced short-term instability but may create new opportunities for investors in the long run [2] - The stock price correction does not necessarily indicate a deterioration in the company's fundamentals but may reflect a market reassessment of its intrinsic value [2] Investment Strategy - Investors are advised to monitor the company's financial reports and industry dynamics to capture potential positive factors [2] - Risk management remains crucial in the face of ongoing economic data changes and global events, as uncertainty in stock price fluctuations persists [2] - Maintaining sensitivity to market information and adjusting investment portfolios flexibly may be effective strategies for navigating the complex market environment [2]

I recently joined The REIT Forum , and if you are looking for more investment ideas like this one, get them exclusively at The REIT Forum with access to our subscriber-only portfolios.I first wrote about MercadoLibre (NASDAQ: MELI ) in early June. At that time, I rated the stock a “hold,” as I believed that its price-to-earnings multiple of 50 was unjustified, especially as beating its earningsAmrita runs a boutique family office fund in beautiful Vancouver, where she leads the investment strategy for the f ...

Group 1 - The article discusses the investment strategy of a family office fund led by Amrita, focusing on sustainable, growth-driven companies that aim to maximize shareholder equity [1] - Amrita has a background in high-growth supply-chain start-ups and has experience working with venture capital firms, which has contributed to her investment acumen [1] - The newsletter "The Pragmatic Optimist," co-founded by Amrita, emphasizes democratizing financial literacy and simplifying complex macroeconomic concepts for better understanding [1] Group 2 - The article mentions that MercadoLibre (NASDAQ: MELI) was previously rated a "hold" due to an unjustified price-to-earnings multiple of 50 [1]