MercadoLibre, Inc. MELI

Goldman Sachs sees Nu Holdings doubling from here, yet the stock keeps sliding even as profits hit record highs. Understanding what separates those two realities could define whether this is the buying opportunity of the year or a value trap in disguise.

Profitability is a key measure of business strength. Companies with high margins have proven they can generate consistent earnings while maintaining financial discipline.

eBay (EBAY) turns more of its sales into operating profit than Amazon, Walmart, MercadoLibre, Etsy or Target. Yet you pay less for each dollar of eBay's profit than for Walmart's or MercadoLibre's. Is eBay stock discounted against those two for a real worry, or simply priced below what it delivers.

MercadoLibre has seen a sharp shift in sentiment over the past year, yet the longer term record still shows a solid gain. That gap between recent share price moves and the earnings power of the business raises a clear question about what investors are really paying for today. The stock has risen 37.7% over the past 3 years, which puts a lot of weight on whether its profit engine can justify that kind of long haul return. The company’s model, which blends e-commerce with payments and credit...

While shorting the market’s favorites, he’s quietly going all in on names most investors have written off.

The famed investor added to bearish positions on Micron and other semiconductor stocks because he believes prices for AI chips will drop soon.

Large-cap stocks are known for their staying power and ability to weather market storms better than smaller competitors. However, their sheer size makes it more challenging to maintain high growth rates as they’ve already captured significant portions of their markets.

eBay (EBAY) trades near $108 after a 22% return over the past year, against 18.5% for the S&P 500. The easy read is that the big gain is already in the price. But revenue grew 14.7% over the last twelve months, more than twice its three-year average. Management ties that growth to focused categories, preowned goods and newer lines such as eBay Live. A three-year scenario on eBay's own numbers shows how much of it could still reach the stock.

In a Substack note, Michael Burry cited Acer CEO Jason Chen’s warning about rising Chinese memory production as a potential sign that the current supply crunch may not last.

MercadoLibre (MELI) produced free cash flow worth 13.7% of its market value over the past twelve months, about three times the 4.5% yield of the median S&P 500 company. A yield that high usually marks either a bargain or a business the market expects to shrink. MercadoLibre fits neither neatly. Its revenue grew 46% over the same twelve months, and management is holding profit down on purpose to keep it growing.

MercadoLibre (NasdaqGS:MELI) issued US$1b of senior unsecured notes maturing in 2036 to institutional buyers. The offering attracted demand from more than one hundred institutional investors, indicating broad appetite for the new debt. The new notes add long dated funding that can support MercadoLibre's liquidity profile and potential future investment plans. There is more to understand about MercadoLibre than this US$1b senior notes issuance alone. Our analysis turns up 2 warning signs for...