The stock market rose on Thursday after a strong fourth-quarter GDP report that was above expectations. GDP grew 2.9% annual rate in the fourth qtr of 2022, which was slightly more than the 2.8% estimates.
Overall, S&P 500 was up 1.1% to 4,060, while NASDAQ was higher 1.8% to 11,512.
1Tweet of the Day
Have all broken out from stage 1 bases on significant volume. pic.twitter.com/C2tZBqlezl
— StockChartArt (@CasualtyWar) January 26, 2023
Chart of the Day
Our chart of the day is the one-year chart of MercadoLibre (MELI) as of January 18, 2023, when the stock was at $1069.
MercadoLibre is the largest online commerce platform in Latin America based on visitors and page views, and gives users a portfolio of services to do commercial transactions. It is like South America’s combination of eBay, PayPal, and Shopify rolled into one.
MercadoLibre (MELI) has been a hot stock this month on news. Its bricks-and-mortar competitor Americano has filed for bankruptcy after a $4 billon accounting problem was uncovered. But the little known story with MELI is it is expected to grow profits from ~$8 this year to ~$60 by 2026.
Qtrly profit growth has been good in four of the past five qtrs. But David Sharek would prefer consistent growth.
The Estimated Long-Term Growth Rate is 135%. But that’s a 3-5 year profit growth estimate, not a stock growth estimate.
MELI is part of the Aggressive Growth Portfolio and Growth Portfolio today.
