Jim Cramer - Mad Money MercadoLibre MELI-Q BUY Jan 29, 2024

It's the Amazon of South America. The recent downturn is due to profit-taking, but also fears of US tariffs against Latin America. However, this gives you exposure to Latin America.

Really well run. Dominates Latin America. Branching out into payments, infrastructure is good. Somewhat susceptible to movements in the USD. Not sure if he sees growth overseas, as there are already big competitors in place.

Like a South American version of AMZN. SA market is under-penetrated. Demographics are very favourable, as population is younger and more active in e-commerce. Growing rapidly, not that expensive. On his radar.

"The AMZN of Latin America", without the cloud business. Largest online e-commerce and payments ecosystem in the region, active in 18 countries. Valuation's not all that bad. The fintech arm is growing faster than the e-commerce side. Shares trending higher since mid-2022. EPS growth rate forecast at 35%. One of the top EM growth stories out there. No dividend.

If you wanted to take a gamble in Mexico. The "Alibaba of Latin America". Extremely expensive, but the returns have been there.

He's not that familiar with this one. Look at free cashflow (operating cashflow minus capex). As a tech company, 
stock-based compensation could be a potential landmine (giving out shares, but it "doesn't count" because it's not a cash item). Strong company, though some negative ROIC in the past going back to 2018 (which was before Covid). Too expensive here to buy afresh.

Leader in Central and South America. If you own it, hold, as long as returns on capital continue strong and don't turn negative. Probably a compounder, as these are winner-take-all businesses.

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