MELI Stock is Skyrocketing - Here's Everything You Need to Know

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Hello everyone, I am Daniel Pronk and in today's video, I discuss MELI stock's Q4 2024 earnings results, and why I think the stock is still not looking expensive, despite selling for all time highs.

Disclaimer: Before we dive into this discussion, I want to make it clear that I am not a financial advisor, and nothing I say is intended to be a recommendation to buy or sell any financial instrument. All trading and investing activities must comply with the regulations set forth by the Securities and Exchange Commission (SEC). I will never ask you to send me money to trade for you, and if you come across any suspicious emails or fake social media profiles claiming to be me, please report them immediately. Additionally, it's important to remember that there are no guarantees or certainties in trading or investing, and you should never invest money that you can't afford to lose. While my videos may contain affiliate links or sponsorship to products I believe will add value to your life, it's crucial to conduct your own research before making any financial decisions.

[danielpronk]

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[JKRInvesting]

Nice video Daniel! Love Meli, I'm up 92% on this one.

[XavierHipolito]

Great video once again! Thank you for doing this

[rhjiotq]

Discovered MELI through the Stock Unlock podcast. Thank You!

[Crosettof]

$MELI is my largest position. This video is true value. Keep doing this!

[vvineet]

Great video! Would love to see your earnings analysis for BABA as well!

[Jimmerca]

With upcoming trade war, I can’t imagine buying in now

[patrickcote]

Thanks Daniel to share your knowledge 😎

[MirouSalkoupam]

3 years ago, I started investing with $300k, but I've only made about 6% total, or 2% per year, which my friends say is very low. I also put $800k into a 401k with a financial advisor, and it's now worth about $1.2 million after 10 years. I think I need to revamp my portfolio. Any advice on what to do with my money would be greatly appreciated.

[giryapawar]

I was waiting for this analysis. Thanks

[johnmcquaid]

Amazing presentation .. thank-you!
🇨🇦

[ColbyBarradas]

Where is your best stocks for february?

[Michael_NV]

Great analysis! Thanks Daniel.
I wouldn't say that the business is not being understood. I'd say it's properly discounted considering the countries, where the revenue comes from.

[juliancochran]

You have double counted in worsting “a 23 multiple of cash flow for a business growing 30%”, as that cash flow of $5B asssumes the inorganic growth is halted. You have the keep the assumptions consigent.

[kruby]

Thanks. As always super valuable . Two things I do not agree are 1) constant currency revenue growth in a hyper inflationary country where the currency consistently loses its value. It’s a valuable metric though in the markets where currencies fluctuate rather than depreciate all the time 2) if you exclude investments to normalize cash flow, cut the growth rate drastically if not completely. You cannot cut investments and keep the same growth that is fueled by those investments

[Simon-ckof]

Why didn't you do a DCF calculation like always?

[joshr]

My biggest issue is still the exposure to the consumer debt. Most of this is from my lack of understanding how mature the consumer loans market is in SA. Are these mostly first time borrowers? What kind of credit agencies / risk assessment exists if any? What are the risks of non-payment by consumers? In an economic downturn what kind of added delinquency would this add?

These are the kinds of questions I need to research more into if I was to buy this stock.

[odoacredacalcutta]

I had to pick one between Meli and NU. I ended up picking NU and of course it reported today and crashed

[ai-investing-insights-with-ron]

The flywheel strategy is brilliant, but doesn’t the heavy reliance on credit expansion introduce significant risk?

[Crosettof]

Do you know that the Commerce take rate in Argentina is considerable higher than BR and MX?