The Motley Foolยท2025-11-10 05:00Group 1: Meta Platforms - Meta Platforms is primarily known for its social media platforms like Facebook and Instagram, with advertising being the main revenue driver, showcasing a high-margin business model [3][4] - In Q3, Meta's revenue increased by 26% year over year, indicating strong performance in its advertising business [4] - The company has a market capitalization of $1,567 billion and a gross margin of 82% [6] - Meta plans to significantly increase capital expenditures, estimating $70 billion to $72 billion for 2025 and at least $110 billion for 2026, primarily for AI data centers [6][7] - The substantial increase in capital expenditures has raised concerns among investors, leading to a decline in stock price, which currently trades at 21 times 2026 earnings [7][9] - The short-term nature of this spending suggests that once the AI infrastructure is built, Meta could return to being a strong cash-flow-generating entity [9] Group 2: MercadoLibre - MercadoLibre is often referred to as the Amazon of Latin America and has a strong ecosystem that includes a payment processing brand, making it difficult for competitors to challenge its market position [10] - The stock has seen a decline of over 10% from its all-time high due to investor concerns about Amazon's renewed focus on Brazil, although it has recovered from recent lows [10][11] - MercadoLibre has demonstrated impressive growth rates and a recent reacceleration in growth, making it an attractive investment opportunity [11] - Investing in MercadoLibre is seen as a bet on the continued economic growth of Latin America, providing a chance to invest in a company with a strong track record of returns [13] - The company is not directly involved in the AI sector, offering diversification for investors [13]