MELI

"Marcado, Libra"

"Or if you like another stock that you think should be in the S&P 500 like Marcato Libre, then you can add that in as well."

"We have discussed Adobe Mercado Libre recently"

"Stock number three, Marcato Libre. This one's interesting. Marcato Libre is basically the Amazon of Latin America."

"But given where a lot of other [618s] stocks are in the market like Amazon, [620s] Meta, Microsoft, Brookfield Asset [622s] Management, Marcato, Libre, I simply [624s] think that those stocks are offering [626s] much more value here and those [628s] businesses are also growing much [630s] quicker."

"Number five is Mercado Libre. Now, this one may be the most interesting stock on there. Um, it's definitely one that, to me, when I'm looking at this company, fundamentals are great. Everything about it is great."

"Michael Burry is buying and we discussed this in the full Mercado Libre video"

"Mercado Libre stock is down more than 33% but if you look at the e-commerce penetration in Asia and Europe, North America, it's about 40%. Latin America still in the teens. Therefore, the room for growth is huge and the company has been growing crazily."

"Let's talk about Rocket Lab, Axon, SoFi, Marcado, Libé, Meta, Uber, New Holdings, and Netflix."

"All right, let's now move on to the fourth stock that I think is looking attractive in the market right now. And this one is Brookfield asset management, which is one of the largest positions in my portfolio."

"Marcato Libre stock is down about 40% from its all-time high. In this video, I'm going to analyze Marcato Libre stock from scratch and figure out if it's currently a buy, sell, or hold."

"Melly can continue for many many years in the future, grow above 20%"

"I think Melly today is in the much much better position to compete"

"I've had a great interview with an executive at Melly"

"I have full confidence in this worldclass company"

"quality of a business like Marcado Libre."

"Marcado Libra you might say"

"Melly could be worth $2,400 per share."

"I mean you mentioned the investment of course right now Mel is in an investment cycle it's not the first investment cycle of the business I mean the whole logistics network has not been built overnight so previous investment cycles have happened but right right now it seems Fact the market is seeing okay we see the growth but we also see the investment hitting margins and so right now how is Melly actually balancing this out"

"we are very we're very confident that you know the the reasons by which this uh margin compression happened are totally under our control and generated by us in a way rather than imposed by the market."

"It's around half of the portfolio. Now, uh while we don't have a preset target of how much we want it to be, we also know that we are only the sixth issuer of cars in Brazil and the fifth one is three times our size and we are still very tiny in Mexico. So you need to expect that that that mix will continue to skew towards the credit card and that means that the NEML in itself forget quarterly movements that I'm going to explain now it will go down but on a much bigger pool. We're doing it for t"

"Stock number five is Mercado Libre. All right, this one has been a retail favorite for some time."

"Marcado Libre, $84.3 billion in market cap. So, what is it here? Almost 20 times 20 Marcado Libres."

"Mercado Libre, we'll start with that [1061s] one. As you can see, there has been [1062s] quite a lot of activity in Q1 with [1065s] regards to Mercado Libre."

"We know why that's one is down. Same [1161s] story here."

"Mercado Libre,"

"Then I do want to talk about a couple of examples because now Marcado Libre, because it's down 37% over the past 12 months, it's gathering a lot of attention from people that are interested in it"

"We've had Marcado Libra report last week."

"To put it simply, they are lowering their interest rates and expanding into riskier markets to continue accelerating the growth of their loan portfolio. This was not received well by the market. And straight up, it does increase the overall risk of the loan portfolio."

"This in my opinion shows that Maricott Libre is just very sophisticated and very intelligent in how they're running their business."

"The first one is Marcato Libresy's net interest margin after losses, which is basically the company's profit margin on its loan book. And we can see that quarter over quarter it declined significantly down to 17.8%. This was one of the main sticking points by analysts on the conference call because they believe it suggests that Marcato Librey's loan book is getting less profitable over time."

"Marcatoa Libre stock is down almost 13% today after the company just reported its first quarter earnings results that I thought looked pretty dang good."

"Marcato Libre's trailing 12 months free cash flow potential is now sitting at $6.8 billion which is my own estimate of how much cash Marcato Libres business could have generated if they were not aggressively investing back into growth. This means that today Marcato Libre is trading for about 12 times underlying free cash flow potential which I think makes the stock look pretty dang cheap."

"This is a beautiful revenue chart. And Marcato Libre has more than 10xed its revenue since 2020."

"I believe that Marcato Libre's advertising business is highly profitable and over the longer term is going to meaningfully add to their bottom line and on a year-over-year basis, it grew by 73% in US dollar terms and their advertising business is growing four times as fast as the underlying market."

"So the real story of this quarter is that Marcato Libre is once again investing aggressively to continue capturing more market share and expanding the business."

"This is a business now doing $31 billion in trailing 12 months revenue, and they're seeing revenue growth rates of nearly 50% on a year-over-year basis. It's just incredible."

"The rebuttal to that is that the NPLs, the non-performing loans as a percentage of the overall portfolio have actually come down on a year-over-year basis, which means that the underlying health of the portfolio surprisingly is improving and less loans are going bad."

"So what Marcato Libre is saying here is that they're making more net dollars. So the net profits of the business, the actual amount of dollars that the business is generating is increasing. However, they are doing this at a lower margin."

"But over time and over the long term, when their investments start to mature, then they can dial them back and the profit margins of the business will expand. Now, the other important thing here is that they're clearly telling the market and investors that they don't plan to dial back in the near future, which basically means that margins are probably going to remain compressed for the foreseeable future."

"Another rebuttal to the risk of the loan portfolio is that Marcato Libre is extremely conservative with their provisions for credit losses. Provisions on the credit portfolio remain above 100%. Marcato Libre is very conservative because it sets aside cash today to absorb all of the potential bad loans."

"We have a once in a generation opportunity to transform how hundreds of millions of Latin Americans shop, pay, and access financial services."

"The important things in this screenshot are that Marcato Libre can dial their investment spend up or down very rapidly."

"Now number one that we're going to talk about here is Marcado Libre. Marcado Libre is down another 12.8%."

"We have Marcado, Libra's earnings report"

"Bad debt contributed a decrease of 3.9% to income from operation in terms of margin. So, from 12.9, 3.9% was taken out because of people not repaying the loans because of bad debt."

"But that was my opinion on MELI."

"But for me personally, I have avoided MELI mainly due to you could say the credit stuff and the bad debt."

"I've done many videos on Mercado Libre. I've been you could say cautiously optimistic about the stock."

"Now, in terms of the valuation, MELI looks extremely attractive. Now, it's trading at 39 times earnings."

"That's kind of what has concerned me with with MELI."

"Now, the main reason why I skipped Mercado Libre is because of the credit portfolio in general."

"But, the bad debt is really concerning to me to me."