Why I'm Buying MercadoLibre Stock (MELI Stock) | Episode #3
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- Опубликовано: 5 авг 2024
- Mercadolibre stock (MELI stock) is down 50% from its 52-week high. We think that right now is a good time to start building a position. Meli stock analysis.
This video was recorded on May 2nd BEFORE Q1 2022 results came out.
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We recorded this video on May 2nd, so it doesn't include Q1 2022 earnings (which were GREAT). Moving forward, we'll be more mindful of earnings dates when we make these. We are also thinking of doing solo earnings reviews so we can cover 2x a day versus just one. As always, this remains a work in progress, so feedback is appreciated!
Pure earnings review videos of the recommendations would be amazing !
Please do MicroStrategy
This is a great stock analysis video. Thank you for going straight to the point and being so respectful of viewers time!
Great video guys ! I learned a ton. You two covered a lot of facets of this challenging analysis. Very impressive work.
These summaries are awesome and I absolutely love the iconography you guys have been using. Brilliant.
Let’s talk now ✍🏿”
Thank you for the video , a lot of research turned into easy to understand video
Glad you enjoyed it Luis!!
Great company, I was in Brazil now and they have a very good service in there, I was really surprised with their delivery service.
Let’s talk now ✍🏿
Would love to hear your guys thoughts on Sea vs Meli long term!
Thanks!
Thank you for your kind donation, pallepati sreenu!
Would love to see you cover HNST, ELY and TTCF! Thanks
Let’s talk now ✍🏿
can you guys do a video update on D-Local? thank you
Keep up good work guys
Will do HBassi!
Hi Brian, are you going to do any updates on SMLR and Pinterest?
@@BrianFeroldiYT Hi Brian, are you going to do any updates on SMLR and Pinterest since they both recently reported earnings? You mentioned that you're giving the yellow flag on both, I'm curious to know if your thoughts are still the same.
Hey Brians, thank you for all the info you provide. Can I know why you don’t consider valuations while adding to your positions? A good company at a high valuation doesn’t provide us with great returns. Can you add valuation section to your run throughs and what you think about current valuation of the company you are researching compared to it’s competition.
They talk about valuation. It’s the last square on the “Risks” page. That being said, they talk about how it’s extremely expensive but then they immediately say they’ve decided to buy it. I agree with you that a high valuation should be a deal breaker, if even if the company is growing exponentially. No company grows like that indefinitely. Buying at these levels is a great way to get burned.
It takes a while to bust this valuation stranglehold but it’s worth researching. It’s important not to overpay but research shows us that your return on an investment is similar to the return on capital of that company - regardless of how much of a discount you bought it for. This is best summarised in Munger’s quote ‘it’s better to but a wonderful business at a fair price than a fair business at a wonderful price.’
Thank you for a great analysis yet again! 👍💪
I have MELI. I had NIO and the likes too. The main problem with investing in emerging markets is corruption, and that’s during good times. During bad times, like what we’re going through these days, corruption is compounded with inflation and poor buying power results in poor returns. The bottom line is: investing in foreign companies from emerging markets listed on US exchanges need one more piece of info- is smart money still in? Retail investors are unreliable in supporting a stock- they’re emotional and run after quick returns.
In good times, both institutions and retail invest all over the world. During rough times, like nowadays, smart money pulls out, leaving retail holding the bag. MELI, NIO, XPENG… etc might be the greatest companies out there, but… nah. I cannot trust their governments and markets. Sorry! 😬🤷🏻♂️
Yup, that's a risk! There's no harm in saying "pass" on all foreign stocks.
That's why you buy in bad times and sell in good times
Did you do a video on Cloudflare earnings? I’m sure I saw a placeholder saying it was premiering yesterday but it’s not listed on the channel
Let’s talk now ✍🏿’
Thanks for the great vids! Quick questions - why would you still decide that this is a “buy” given the very high valuation? Even the best company in the world is a bad buy if you overpay. What makes you think this exponential growth is going to continue? That’s what is stopping me from buying. Even at these levels, buying now seems like a speculative play, not a true investment.
They just grew revenue 67% in Q1 which is incredibly impressive given the hard comps in 2021 due to Covid bump. Hard to find companies now with that kind of growth on top of 2021. They’re also profitable with good free cash flows which is important in this environment. They’re not burning cash like a lot of other tech companies scaling up. The e-commerce and digital payments space in Latin America is the fastest growing in the world the story isn’t over. They also aren’t all that expensive given their growth. 39B market cap and on track for 10B in revenues in 2022.
Everey durable growth is exponential...
Would love your thoughts on SE vs MELI head to head
Let’s talk now ✍🏿
Separate question but does Motley Fool plan on ever making youtube vids again?
Love MELI!
Let’s talk now ✍🏿
One bagger good call.
This atock rose rose during pandemic. Its on a big down trend. When i zoom out and look at the charts, i see this stock leveling off around $300-600.
Todavía tenés las acciones de mercado libre amigo? Saludos desde Córdoba Argentina ☺️👍
I'm confused why Stoffel rated this higher than the highest possible "anti-fragile" score, but you listed a number of things that make this company seem very fragile.
I'm not concerned about those risks. Why? See the "MOAT" section. Also, can be higher than 14, but very few are
Everyone there says that growth stocks will Be down even more, what should we do?
Let’s talk now ✍🏿’
Did you know that if you divide MELI's valuation by the number of employees, you get that each employee is approx. worth 317 thousand dollars?
Love your insights all the way from Denmark
Nice metric!
My question is how do you know how many shares to buy at first when starting a new entry
I wouldn't focus on how many shares but the value you want to invest. Currently I would add 2k max per purchase, wait till next quarter and add 2k etc. Don't go all in
Let’s talk now ✍🏿’
I just read that Marcos Galperin is no longer CEO, Stelleo Passos Tolda is since 2020.
Great video!
Let’s talk now ✍🏿
I believe this is incorrect. That is what Google has as the top result, however Marcos Galperin did an interview in 2021 and at that time he talked about how he was still CEO, and there have been no announcements from the company announcing a new CEO. With that being said, in that interview (podcast episode with 20VC) he mentioned that he will likely be looking to make a transition out of the CEO role within the next few years, so don’t be shocked if he does step down and somebody new takes over.
@@brettw.6499 Thank you for the information.
Earnings:
Hubspot
Block
Etsy
Mercado Libre
Next week:
Coinbase
Upstart
The Trade Desk
Some suggestions that would be greatly appreciated!
Are they going to tank like Amazon?
Let’s talk now ✍🏿’
Latin America is leaning towards that dangerous left populism they could hurt companies a lot. Look at Venezuela, the geopolitical risk is too much for me. On top of that, the delivery logistics are very different in those countries and represent a challenge in the growth because I believe those that can use the service are already doing it so. For those reasons I prefer to look from the fence.
Cover Nu Holdings please
Let’s talk now ✍🏿
Strong dollar and high interest rates hurt Latin america.
And the stock is still expensive no reason to buy it higher than pre pandemic peak even if it had a lot of growth with rates going much higher than they were then.
Its a falling knife
You might be right -- this is why we diversify. We still think it's a great long-term business
When would you consider buying it, then?
The business is doing better than pre pandemic level and already at it's cheapest level not seen in years. People just throw around the term falling knife it seems.
Haven't credit suisse and zacks recently downgraded the stock?
@@yasinamanullah What were the reasons given?
Any chance for a stock split?
Possibly
I bought a lot of Meta, Google and Adobe. Buy when there is blood on the streets.
Certainly has been a lot of it!
The king of Latin America
Let’s talk now ✍🏿
Any thought on their debt?
Let’s talk now ✍🏿..
Other than energy stocks, seems like no one is interested in tech stocks. No matter how good they are
Let’s talk now ✍🏿’
This is when you buy tech stocks!
Alibaba of South America
Let’s talk now ✍🏿
Vaya con Dios! Too opaque. And I think you're too early!!
Let’s talk now ✍🏿
They are scammers
Mercadolibre big scam…. I lost 1400 usdt
@Prettiest-kv9vm all my money the will spend in medicine, for the children
OverValued
You might be right -- we think it's a good entry spot, but we could be wrong
When would you buy?
@@dphuntsman I'm not a buyer of this stock above 600 dollars. Next Months will still be blody, especialy with the dollar breaking upside, gas getting all time highs and the fed rising rates...Etc I Think it's not the time to buy any stock, just accumulate cash for now and buy only safe heavens like FB, AAPL and BABA... maybe next year it would be a better time to buy growth stocks
I like this channel a lot, but I think it is irreponsible to speak all the time about buying a stock in this bear market. Both of them have such a positive charisma, that they will have followers and the followers will loose money.
We suck at market timing, so we don't even try. As we stress often, we have a multi-year time horizon. Yes, we are going to be the rubes buying the whole way down. But, we'll also be the "geniuses" buying the whole way back up.
So nobody should buy in a bear market? A bear market is the only investing way to make money!