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It has high rates of next-day and two-day shipping, and as more suppliers join its logistics network, it’s benefiting from a flywheel effect of more customers joining, more suppliers joining, and higher revenue. That’s creating incredible profitability at scale. Latin America is still underpenetrated in e-commerce, which is why MercadoLibre is both growing at a rapid pace and also still has a long growth runway.

As well as the e-commerce business is performing, MercadoLibre has a fintech business that’s growing even faster. What began as a means for underbanked customers to be able to pay for their purchases has ballooned into full financial services app that includes credit cards, digital payments, investing tools, and more. It has developed a strong credit business underscored by its rich data stores, and that’s resulting in effective risk management and low costs. It’s the top fintech platform in three out of its four top regions in terms of monthly active users, which continue to increase, and as it adds customers to its ecosystem, it benefits from the lower churn, higher engagement, and lower credit risk that systematic users create.

The company continues to improve its business and develop new segments and services, such as a growing ad business and an e-commerce membership program, both like Amazon.

As impressive as it already is, MercadoLibre has massive long-term opportunities, it’s likely to keep crushing the market over the next five years and longer.

Jeremy Bowman (Sweetgreen): Not every restaurant stock is the next Chipotle Mexican Grill, but Sweetgreen is one of the more intriguing restaurant stocks to come on the market in recent years.

The company is the largest fast-casual salad chain in the country, providing a unique take on the fast-casual model that has been so successful for peers like Chipotle. Sweetgreen generates average unit volumes of $2.9 million, among the tops in the industry and a clear sign that its product is popular.

In its second quarter, same-store sales jumped 9%, showing momentum for the business, and it has a lot of runway for growth with just over 225 locations currently.

However, the biggest reason why the stock has the potential to crush the S&P 500 by 2030 is its embrace of technology, specifically Infinite Kitchen, its robotic assembly line system that both accelerates throughput and increases the company’s average ticket and margins.

It’s rolling out the technology to more restaurants, and it could be a game changer over the long term as the company expands across the country with plans to reach 1,000 restaurants by the end of the decade.

With the company’s high average unit volumes, Infinite Kitchen could also help drive the bottom line higher, as the company is still unprofitable on a generally accepted accounting principles (GAAP) basis. However, its profitability is improving and if it can accelerate its margins to approach that of more established fast-casual chains, Sweetgreen stock should soar over the remainder of the decade.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jennifer Saibil has positions in MercadoLibre. Jeremy Bowman has positions in Amazon, Chipotle Mexican Grill, MercadoLibre, and Starbucks. John Ballard has positions in Dutch Bros and MercadoLibre. The Motley Fool has positions in and recommends Amazon, Chipotle Mexican Grill, MercadoLibre, and Starbucks. The Motley Fool recommends Dutch Bros and Sweetgreen and recommends the following options: short December 2024 $54 puts on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.

3 Unstoppable Stocks That Can Crush the S&P 500 by 2030 was originally published by The Motley Fool

“The Trump victory will likely put upward pressure on inflation due to tariff and immigration policy,” TD Securities strategists including Oscar Munoz and Gennadiy Goldberg wrote in a note to clients on Friday.

That explains why Wall Street forecasters are dialing back their expectations for how much the Federal Reserve will cut interest rates after the US central bank reduced borrowing costs by a quarter of a percentage point on Thursday.

TD Securities predicts the Fed will pause its interest rate cuts in the first half of 2025 so it can assess the impact of Trump’s economic plans. Goldman Sachs Group Inc. had been predicting rate cuts in May and June, but now projects them in June and September, marking a slower pace. And Barclays Plc economists were expecting the central bank to reduce rates three times in 2025, but sliced that to two.

“The bond market is going to dictate whether or not his policies can get enacted,” said Carol Schleif, chief investment officer of BMO Family Office.

In the stock market, the differences between 2016 and 2024 were already evident before the election. US equities outperformed their international counterparts in October, which is rare in an election year, according to Bloomberg Intelligence chief equity strategist Gina Martin Adams.

And now that the vote is over, the tilt toward value hasn’t been as strong as it was in 2016, when the Russell 1000 Growth Index was roughly flat in three sessions after Election Day while the Russell 1000 Value Index jumped. This time, it’s the opposite, with the growth index handily outpacing the value index.

Growth Joins The Party

At the sector level, not a single group has had a decline since the election. In 2016, five of the 11 sectors fell between Wednesday, Nov. 9 and the weekend.

The energy group is up 3.6%, adding to gains that made it the best performing sector during President Joe Biden’s term, gaining almost 120% since his inauguration. It was basically flat in the days after the 2016 election, and the sector actually declined 40% in Trump’s first term.

Despite the fact that the US has become the world’s largest oil producer under Biden, Miller Tabak’s Maley said most investors don’t realize that energy stocks performed so much better under him than in Trump’s first term. But he expects the sector to outperform this time.

While the differences between 2016 and 2024 are stark, one thing remains the same: stock market investors are enthusiastic for a Trump presidency. A whopping $20 billion flowed into US equity funds on Wednesday, the biggest daily addition in five months, the day after he claimed a decisive victory in the presidential election, according to Bank of America Corp. strategists and EPFR Global data.

So far, while Treasury yields are higher and the risk of rising inflation remains acute, Wall Street pros see stocks continuing to rally on optimism that his policies will propel Corporate America to further growth.

“I think you’ll just see higher inflation, higher rates and higher stocks,” Catalyst Funds’ Miller said. “If people are willing to let inflation run hot, you can get stocks to run with it.”

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©2024 Bloomberg L.P.

The company expects consistent growth of between 20% and 30% from its gaming customers, but it has also just started piloting the platform with e-commerce. It has said early results are tracking above expectations and that it thinks this vertical can scale next year and start being a strong contributor. Moving beyond gaming is a huge potential opportunity for the company.

With its stock up about 628% year to date, the company’s forward price-to-earnings (P/E) ratio has risen to 47 based on 2025 analyst estimates. Its price/earnings-to-growth (PEG) ratio now sits at 1.28. A PEG ratio of under 1 is considered undervalued and growth stocks will often command multiples well above 1.

I’ve written favorably about AppLovin several times this year, going as far back as April, while in June I listed it as one of two stocks that I thought could go parabolic. While the stock and its valuation have greatly increased since then, I think there could still be more upside ahead.

If AppLovin can continue to grow revenue at a 30% pace while keeping expenses in check, its valuation is reasonable. Meanwhile, if it is able to move beyond gaming with Axon 2, the sky remains the limit.

While I think it is prudent for investors with big gains to take some profits, I’d still be holding onto the stock even after this incredible run in its share price.

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

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Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AppLovin, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy.

Move Over Nvidia and Palantir, This AI Juggernaut Is Up 628% Year to Date. Can the Stock’s Momentum Continue? was originally published by The Motley Fool

Still, Barrick has faced setbacks in its attempts to match production to cost targets. Its Nevada operations, co-owned with Newmont, need significant infrastructure repairs, and labor costs have increased.

“We’re still not as efficient in Nevada as we are in some of our African mines,” Bristow said. “But we’re getting there.”

Africa is also a chief concern among investors, notably in Mali, where the military government is threatening to withdraw the company’s right to operate a mine. In the Dominican Republic, an extension to Barrick’s Pueblo Viejo mine has taken longer than expected to complete.

Operating issues at the Nevada mines and Pueblo Viejo will “persist into 2025 and are expected to have an impact on production,” Bank of Nova Scotia analyst Tanya Jakusconek wrote in a Friday note.

The setbacks have ceded territory to rivals. Newmont solidified its position as the world’s top producer with its acquisition of Newcrest Mining Ltd. last year, significantly boosting its production of gold and copper. Agnico Eagle, once a small gold producer, surpassed Barrick’s market capitalization for the first time early this year. Barrick’s annual gold output, meanwhile, is at its lowest level since 2000.

Barrick has regularly missed Wall Street’s expectations for important measures such as revenue and gold production in its quarterly results — including last week’s financial disclosures.

“Barrick has a lot of challenges to overcome,” said Rick Rule, a US investment adviser and shareholder. “At the very least, it would be useful if the quarterly performance matched guidance.”

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©2024 Bloomberg L.P.

Admittedly, the release of that data led to a spike in the stock price, which may appear to bolster the argument that I made the wrong decision.

However, despite the potential of AIP, Palantir is on track for a growth slowdown. In 2025, analysts predict its revenue will grow by only 21%, less than the 26% Palantir has forecast for 2024. Such increases are bullish for Palantir stock, but they were not enough for me to justify the company’s valuation.

Remembering my Booking Holdings lesson, I will keep Palantir on my watch list, and to be honest, I still hold a bullish view of the stock over the long term. Also, one cannot time the market, forcing me to acknowledge the sale could turn into a mistake.

Nonetheless, even the most successful stocks over the last 50 years, including Nvidia and Amazon, experienced retracements of more than 50% at points in their histories, a risk that could validate my decision to book my gains.

Investors should also remember that Palantir has already experienced a decline of just over 85% in its short history. While I do not think it will fall back to its price in late 2022, its valuation increases the possibility of a massive pullback in Palantir stock.

Ultimately, the Booking Holdings mistake is still on my mind, so if Palantir’s earnings and sales multiples become more reasonable, it is highly possible that I will repurchase my shares. But with more potential downside than upside in the near term, I’m happy to stay on the sidelines for now.

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $23,446!*

• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,982!*

• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $428,758!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of November 4, 2024

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Booking Holdings, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy.

Why I Sold All of My Palantir Stock was originally published by The Motley Fool

The way Graham put it was, “it’s more a matter of the character than of the brain.” He wanted to empower people and to communicate to them that they shouldn’t be intimidated by the fact that so many of the public figures in investing have fancy degrees and initials after their names and often seem extraordinarily intelligent.

His point was that any person of regular, above-average intelligence should be able to do well as an investor if you follow the right principles. And that’s what the book is really about.

Has the book found a new generation of investors? It was a whole different world 75 years ago?

It has because there’s so much unintelligent investing that people crave the ideas that you need to have in order to be an intelligent investor. It’s never been easier to be an investor, but it’s never been harder to be an intelligent investor because there’s so much propaganda coming from Wall Street. There’s so much garbage on social media. There’s so much pressure on your smartphone to trade, trade, trade and to follow the crowd. And it’s easier than ever to make stupid mistakes. And if the book does its job, it’ll help people avoid those errors.

How much did Buffett work with you on this edition of the book?

When I did the previous revised edition of the book in 2003, he did give me some tips on a couple of places to look and things to think about. This time he was pretty much hands-off. I think he feels that the book speaks for itself at this point.

I left the original tech text completely intact. All I did was annotate it with footnotes because some of these references are a little dated — not everybody who doesn’t play Monopoly knows what the Reading Railroad was. But I also wrote for each of Graham’s 20 chapters an accompanying commentary. So there’s 20 chapter commentaries, and those are all new for 2024. And that’s my contribution.

How does this classic advice fit into today’s market realities?

Graham teaches us a handful of basic principles that are so important for success as an investor.

One is he teaches us that we should understand that a stock is a share of ownership in a business enterprise. It’s not a blip on your cell phone screen. It’s an organic thing. You own a piece of a company that is either making its customers thrilled to be part of the community, or turning them off. And it either will generate a growing stream of cash over time, or a shrinking stream of cash.

That’s what you need to focus on to call yourself an investor in stocks. You need to understand that you’re buying a piece of a business. You are not buying a spinning slot machine reel that masquerades as a stock price.

Graham writes about being an investor and a speculator. Can you elaborate?

A speculator is somebody who cares only about what the next person thinks this thing is worth. An investor is trying to understand what it’s worth as a business rather than chasing the price of the stock.

Just because millions of strangers are also trading something, that doesn’t mean you should. It doesn’t mean they know what they’re doing. It doesn’t mean that even if they do know what they’re doing, you should try it too.

And as a result, because we live in this networked, online, totally wired world, we have to be more on our guard against the bad influences of other people and technology than ever before. And that makes his principles even more powerful.

Let’s talk about the role technology plays for the individual investor today. Good or bad thing?

When it comes to investing, we get an institutional message from Wall Street that technology has leveled the playing field. The essence of that message is that you can beat the professionals at their own game. And this is the most dangerous possible message that individual investors should get.

You can beat the professionals, but not if you play their game. One of the most commonly understood statistics about the stock market is that 80% of professional fund managers underperform the market. So why would I even want to play that game?

Graham’s message is that the basic advantage of the intelligent investor is you don’t have to care what other people are doing. You don’t have to care how they invest, or if somebody else is beating the market.

You don’t have to care if somebody else is buying a stock at stupid prices. You don’t have to do it, too. If someone else is selling in a panic, you don’t have to sell in a panic. You can ignore what everybody else is doing.

And if you organize your financial life around the principle of independence, rather than following the crowd and Wall Street and the technology that it puts on our smartphones that is designed to distract us from that idea, that’s how investors can seize control. It’s not by trading more, but by trading less and investing more smartly.

Have a question about retirement? Personal finances? Anything career-related? Click here to drop Kerry Hannon a note.

Graham draws this great distinction between defensive and enterprising investors. Can you share?

The conventional way to put investors in buckets is to call them conservative, moderate, or aggressive based on the amount of risk you think you want to take — or some goofy quiz says that you are willing to take.

Graham says, forget all that. There are two kinds of investors — defensive and enterprising — and it has nothing to do with your tolerance for risk. A defensive investor is not necessarily somebody with a conservative portfolio. It’s somebody who simply doesn’t want to be bothered putting in the time and effort and energy it takes to be an active investor.

Your objective is to have a low-maintenance investing life. And Graham says, that’s fine. There’s nothing wrong with that. If you’re a defensive investor, you could very defensively buy three to five index funds or ETFs, and hold them for the rest of your life and not really do anything else. That’s the ultimate defensive investor.

An enterprising investor is somebody who enjoys spending part of the weekend analyzing data about stocks and funds and asset allocation and global markets. And if you are the kind of person who enjoys putting some of your spare time and a lot of your mental energy into analyzing investments, you’re enterprising.

Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist, and the author of 14 books, including “In Control at 50+: How to Succeed in The New World of Work” and “Never Too Old To Get Rich.” Follow her on X @kerryhannon.

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