The stock market dropped on Thursday despite NVIDIA’s (NVDA) stronger-than-expected earnings results. This sparked a tech rally, but was only momentary. Investors also await a key speech from the Federal Reserve Chair Jerome Powell.
Overall, S&P 500 fell 1.4% to 4,376, while NASDAQ declined 1.9% to 13,464.
Tweet of the Day
Ah yes!… Completely forgot about this so stable sales growth driver – stockpiling, due to the fear of US sanctions. Must confess I got intrigued by NVIDIA tripling their datacenter unit sales in one Q.
Is there any industry growing at that pace in a normal, organic way? No. pic.twitter.com/owkfO6ou15
— Grizzly Capital (@mind_the_bear) August 24, 2023
Chart of the Day
Here is the one-year chart of MercadoLibre (MELI) as of August 17, 2023, when the stock was at $1,197.
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 (PYPL), and Shopify rolled into one.
MercadoLibre continues to deliver great results as Mexico is now a key driver of growth. Last quarter, Mexico surpassed Argentina as the company’s 2nd largest market in ecommerce business in terms of gross merchandise value, surpassing Argentina. Brazil remains the company’s number one market. Mexico is also delivering the highest growth rates in terms of items sold within the company’s six largest markets.
The company is also expanding its logistics network in the country with two new fulfillment centers. For the fintech segment, the company sees a huge opportunity in Mexico which management sees as “underbanked” as it has low adoption for general financial services compared to other Latin American countries. Mercado Pago users in Mexico can open their digital account in minutes, and the money on the account can be used anytime digitally or with a free debit card. The company launched its credit card in Mexico during the first half of the year to complement its buy-now-pay-later and consumer loan services.
Annual Profit Estimates are up this qtr. Here are the future estimates:
2023 $20.03
2024 $28.74
2025 $42.72
2026 $54.84
2027 $74.19
MELI is part of the Aggressive Growth Portfolio and Growth Portfolio.
