Core Viewpoint - The article emphasizes the importance of portfolio diversification and highlights five growth stocks that present significant short-term and long-term investment opportunities beyond artificial intelligence stocks [2]. Group 1: MercadoLibre - MercadoLibre operates an online marketplace across 18 Latin American countries, benefiting from the region's growing e-commerce adoption [3]. - The company reported a 49% year-over-year revenue increase (currency neutral) in Q3 2025, with gross merchandise volume (GMV) rising by 35% [4]. - MercadoLibre is expanding its fintech services, gaining new users rapidly and increasing its credit portfolio, indicating strong growth potential [4][5]. Group 2: Dutch Bros - Dutch Bros operates over 1,000 stores in the U.S. and plans to expand significantly, aiming for 7,000 stores in the future [9]. - The company achieved a 25% year-over-year sales increase in Q3 2025, with comparable sales up by 5.7% and earnings per share rising from $0.11 to $0.14 [9]. - Dutch Bros focuses on speed and friendly service, with a business model primarily consisting of drive-thru locations and mobile ordering [8]. Group 3: On Holding - On has established a premium athletic wear brand, particularly known for its Cloudtec footwear, and is experiencing robust growth despite a challenging market [12][13]. - The company reported a 35% year-over-year revenue increase (currency neutral) in Q3 2025, with a gross margin of 60.6% and a 290% increase in net income [13]. - On is expanding its brand presence through both direct-to-consumer and wholesale channels, indicating potential for significant investor gains [13]. Group 4: Nu Holdings - Nu is a digital bank based in Brazil, serving over 60% of the adult population and expanding into new regions like Mexico and Colombia [14][15]. - The company reported a 39% year-over-year increase in revenue and net income in Q3 2025, with average revenue per active user rising from $11 to $12 [15]. - Nu is pursuing long-term expansion plans, including applying for a bank charter in the U.S., which presents substantial growth opportunities [15]. Group 5: Amazon - Amazon is the largest e-commerce company in the U.S., with a significant market share of around 40%, and is continuously launching new services [17]. - The company’s Amazon Web Services (AWS) is the largest cloud computing provider globally, playing a crucial role in its growth, particularly in AI [18]. - Management sees explosive growth opportunities in AI, indicating that Amazon could be a major long-term winner in this space [18].

Core Insights - Both OppFi Inc. (OPFI) and Nu Holdings Ltd. (NU) are fintech companies focusing on consumer lending for underserved populations and emerging credit markets [1] Group 1: OppFi Inc. (OPFI) - OPFI reported Q3 2025 revenues of $155.1 million, reflecting a 13.5% year-over-year growth driven by a 12.5% increase in net originations and a 79% auto approval rate [2][3] - Adjusted net income for OPFI improved by 41.4% year-over-year to $40.7 million, supported by strong revenue growth and disciplined expense management [3] - Management raised 2025 revenue guidance to $590-$605 million and adjusted EPS expectations to $1.54-$1.60, indicating strong demand and operational enhancements [4] - OPFI's forward earnings multiple is 5.68 times, lower than its 12-month median of 6.91 times, making it more attractive to value investors [13] Group 2: Nu Holdings Ltd. (NU) - NU achieved a 39% year-over-year revenue growth in Q3 2025, adding 4.3 million new customers, bringing the total to 110.1 million across Brazil, Mexico, and Colombia [5][6] - Gross profit for NU reached $1.8 billion, a 32% increase year-over-year, with a margin expansion to 43.5% [6] - NU's deposits grew by 37.1% year-over-year to $38.8 billion, and its loan portfolio increased by 42% to $30.4 billion, indicating strong asset quality [7] - NU's forward earnings multiple stands at 20.76 times, slightly above its median of 20.71, suggesting a higher valuation compared to OPFI [13] Group 3: Comparative Analysis - The Zacks Consensus Estimate for OPFI's 2025 sales indicates a year-over-year growth of 13.6%, while NU's estimates show a 35.9% increase [9][11] - OPFI's Zacks Rank is 1 (Strong Buy), while NU carries a Zacks Rank of 2 (Buy), indicating a stronger investment appeal for OPFI [17] - Both companies are positioned as compelling fintech players, but OPFI is considered to offer better upside potential due to its lower valuation compared to NU [16]

Group 1 - The Data Driven Investor has achieved significant returns, with a Long Term Growth Portfolio up nearly 194% since 2018, driven by disciplined strategy and risk-aware execution [1] - The service focuses on uncovering alpha in the AI revolution while managing downside risk in a volatile tech landscape [2] - The investment approach includes Options Ideas for short-term income generation, Quantitative Stock Strategies, stock picking algorithms, Macro analysis, and tactical ETF strategies [2] Group 2 - Andres Cardenal, CFA, leads The Data Driven Investor, bringing over 25 years of experience in investment research and strategy development [2] - The company emphasizes a transparent approach to investing, with a 4.9-star average rating [1]

Core Insights - Howard Marks emphasizes the importance of balancing risk and reward in investment strategies, particularly for retail investors [1] - Oaktree Capital Management, led by Marks, is noted for its prudent investment approach, especially in late-stage markets [2] Company Summaries - **Nu Holdings**: Oaktree initiated a new position in Nu Holdings worth approximately $72 million, representing over 1.5% of its overall portfolio. The investment is significant due to Nu's international growth potential and modest valuation, despite Berkshire Hathaway's exit from its stake [3][4] - **Performance Metrics**: Nu Holdings has a forward price-to-earnings (P/E) multiple of 19.8, following strong earnings growth in Q3, making it an attractive option for investors seeking emerging market opportunities [4][7] - **Sea Limited**: Oaktree also added Sea Limited to its portfolio in Q3, which serves the Southeast Asian market. This investment provides diversification and growth potential similar to that of Nu Holdings [6][7]

Core Insights - Howard Marks is recognized as an influential investor with valuable insights for retail investors [1] Group 1 - Marks shares wisdom that can benefit average retail investors [1]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1] Company Overview: Nu Holdings Ltd. (NU) - Nu Holdings Ltd. currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Price Performance - Over the past week, NU shares increased by 0.44%, while the Zacks Banks - Foreign industry declined by 2.46% [5] - In the last quarter, NU shares rose by 7.36%, and over the past year, they increased by 14.23%, outperforming the S&P 500, which moved 4% and 12.33% respectively [6] Trading Volume - NU's average 20-day trading volume is 37,445,536 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, two earnings estimates for NU have been revised upwards, increasing the consensus estimate from $0.56 to $0.58 [9] - For the next fiscal year, two estimates have also moved higher, with no downward revisions noted [9] Conclusion - Given the strong momentum indicators and positive earnings outlook, NU is recommended as a 2 (Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [11]

Core Insights - Nu Holdings (NYSE: NU) is a leading digital banking platform operating in three Latin American countries, showing significant growth potential for investors [1][3] Company Performance - Nu's share price has increased by 268% over the past 36 months, turning a $10,000 investment into over $36,790 [3] - The company has experienced a remarkable growth in customer base, reaching 127 million customers as of September 30, which is an 81% increase from three years ago [4] - Revenue has surged by 219% during the same period, with a net margin of 18.8% reported last quarter, indicating strong profitability [5] Investment Considerations - Despite the impressive past performance, analysts suggest that potential investors should consider other stocks that may offer better returns, as Nu Holdings was not included in a recent list of top stock recommendations [6][7]

Core Insights - Nu Holdings Ltd. reported better-than-expected earnings for Q3, with earnings of 17 cents per share, surpassing the analyst estimate of 16 cents [1] - Quarterly revenue reached $4.17 billion, exceeding the analyst consensus estimate of $3.8 billion and showing a significant increase from $2.94 billion in the same period last year [1] Growth and Customer Engagement - In Q3'25, Nu Holdings expanded its customer base to 127 million, adding over 4 million net customers, while maintaining an activity rate above 83% [2] - The company achieved record revenues exceeding $4 billion and net income of $783 million, indicating strong growth and deeper customer engagement [2] Future Vision - The CEO of Nubank, David Vélez, emphasized the company's vision to become AI-first, integrating foundation models into operations to enhance customer banking experiences [2] Stock Performance and Analyst Ratings - Following the earnings announcement, Nu Holdings shares rose 3.3% to $16.10 in pre-market trading [3] - Analysts have adjusted their price targets for Nu Holdings, with Susquehanna maintaining a Positive rating and raising the target from $17 to $19, while Keybanc maintained an Overweight rating and increased the target from $15 to $19 [5]

Market Overview - U.S. stock futures declined following a significant sell-off on Thursday, with major indices showing lower futures despite the government reopening [1][2] - The Nasdaq 100 index, typically strong in November, was down 3.34% month-to-date, contrasting with its historical average gain of 2.64% since 1985 [1] Treasury Yields and Market Projections - The 10-year Treasury bond yielded 4.13%, while the two-year bond was at 3.58%, with a 49.6% likelihood of the Federal Reserve cutting interest rates in December [2] Stocks in Focus - Warner Bros Discovery Inc. rose 3.34% amid acquisition interest from Comcast, Netflix, and Paramount, maintaining a strong price trend [5] - Nu Holdings Ltd. gained 2.98% after exceeding earnings expectations and adding 4.3 million new customers in Q3 [5] - Globant SA fell 3.31% after reporting earnings of $1.53 per share, missing estimates, although sales of $617.143 million exceeded expectations [5] - Applied Materials Inc. declined 4.82% despite better-than-expected Q4 results, impacted by a drop in China revenue [5] - Fluent Inc. dropped 6.93% after reporting disappointing Q3 results [5] Sector Performance - Consumer discretionary, information technology, and communication services sectors recorded the largest losses, while energy stocks closed higher [6] Analyst Insights - The current economic environment is described as a "K-shaped economy," with high-income consumers benefiting while low-income households face challenges [8] - Optimism for a potential economic reversal by 2026 is noted, driven by tax cuts, deregulation, and lower interest rates [9] - Investment opportunities are highlighted in technology-related trends, particularly in artificial intelligence [9] - The Financials sector is rated as most favorable, along with Industrials and Utilities [10]

Airbnb - Airbnb's management is focusing on integrating AI across its app to enhance user experience and service offerings, aiming for a fully AI-powered platform for trip planning and booking [2][3] - The company has launched an AI customer support assistant that has reduced the need for human agents by 15%, with plans to expand its capabilities to over 50 languages by 2026 [4][6] - AI search functionality is set to roll out in 2026, allowing users to interact with the app in a conversational manner to personalize their travel experiences [7][10] - Airbnb's approach to AI emphasizes real-world connections, aiming to attract users away from screens and towards authentic experiences [8][9] - The management believes that Airbnb's unique capabilities in travel will allow it to benefit more from AI compared to other travel companies, as it does not rely on standardized products [10][11] - The company is cautious about integrating with platforms like ChatGPT, preferring to maintain its unique brand identity and avoid being seen as a commodity [11][12] - Airbnb is delaying the introduction of an advertising business until after the successful implementation of AI search, indicating a strategic approach to new revenue streams [14][15] Arista Networks - Arista Networks is positioned to benefit from the growing demand for AI networking solutions, with a target of $2.75 billion in AI-related revenue for 2026 [19][20] - The company is actively involved in creating open ecosystems for AI networking, collaborating with major players like NVIDIA and Oracle [17][22] - Arista's Etherlink distributed switch fabric is designed to enhance the performance of AI accelerators, showcasing its strength in AI networking [16][19] - Management sees a significant market opportunity in AI build-outs, with a total addressable market exceeding $100 billion [20] - The company is experiencing strong demand for its networking solutions, particularly in large AI data center projects, and is involved in multiple AI accelerator projects [26][29] - Arista's management acknowledges the challenges of maintaining margins with cloud and AI customers but remains optimistic about overall growth [25][32] - The convergence of front-end and back-end networking is seen as advantageous for Arista, allowing it to offer comprehensive solutions across its infrastructure [34][35] Coupang - Coupang is focused on building its internal AI computing infrastructure to enhance operational efficiency and service quality [42] - The company is testing the potential for third-party usage of its AI infrastructure but is primarily concentrating on internal applications [42] - AI is delivering tangible benefits in areas such as demand forecasting and fulfillment automation, contributing to cost savings and improved customer satisfaction [42] Datadog - Datadog has seen strong revenue growth from AI native customers, with a notable increase in the number of companies spending significantly on its services [43][44] - The management is optimistic about the future growth of AI usage across various industries, indicating a broadening customer base [44] - Datadog's Bits AI agents are generating high customer interest, with positive feedback on their efficiency and effectiveness in operations [45][46]