The New Billionaires of the AI Boom
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
9 minutes ago
- Bloomberg
OpenAI Staffers to Sell Shares at $500 Billion Valuation
Current and former OpenAI employees plan to sell approximately $6 billion worth of shares to an investor group in a deal that values the startup at $500 billion, according to sources. Bloomberg's Kate Clark explains what's behind the deal and the jump in valuation. (Source: Bloomberg)
Yahoo
12 minutes ago
- Yahoo
Prediction: Buying MercadoLibre Today Could Set You Up for Life
Key Points MercadoLibre is one of the world's fastest growing e-commerce companies. It has plenty of room to grow in Latin America. It still looks reasonably valued relative to its long-term growth potential. 10 stocks we like better than MercadoLibre › MercadoLibre (NASDAQ: MELI), Latin America's largest e-commerce company, went public at $18 a share in 2007. Today, its stock trades at about $2,330. That 12,844% gain would have turned a $10,000 investment into $1.29 million. From 2007 to 2024, MercadoLibre's annual revenue grew at a stunning CAGR of 38%. It established a first mover's advantage in Latin America's fertile e-commerce market, expanded its logistics network across the region's challenging terrain, and locked its shoppers into its Mercado Pago digital payments platform and other fintech services. MercadoLibre also turned profitable again in 2021, and its annual net income increased at a whopping CAGR of 184% over the following three years. Its profits surged as it sold more higher-margin products on its first-party marketplace, generated higher-margin revenue from its third-party marketplace, expanded its higher-margin credit and advertising segments, and leveraged its economies of scale to dilute its logistics, payment processing, and marketing expenses. Those growth rates are incredible, but some investors might be reluctant to buy MercadoLibre's stock after those multibagger gains. However, I believe buying MercadoLibre's stock today could still set you up for life for three simple reasons. 1. It hasn't saturated its core markets yet MercadoLibre operates its marketplace in 19 Latin American countries. However, it generates most of its revenue in Brazil, Argentina, and Mexico -- and it still has plenty of room to grow in smaller markets like Chile, Colombia, Peru, and Ecuador. At the end of 2024, MercadoLibre served more than 100 million annual unique active buyers and 60 million fintech monthly active users. But that's just a fraction of the 668 million people (including 451 million adults) who live in the Latin American and Caribbean region. Latin America's population is also expected to keep growing through 2050. That low penetration rate gives MercadoLibre plenty of room to expand its e-commerce and fintech platforms. Grand View Research expects Latin America's e-commerce market to grow at a CAGR of 16.7% from 2024 to 2030. IMARC Group predicts the region's fintech market will expand at a CAGR of 15.9% from 2025 to 2033. If MercadoLibre stays at the top of those booming markets, it will likely generate double-digit sales growth for the foreseeable future. 2. It's growing a lot faster than its overseas competitors From 2024 to 2027, analysts expect MercadoLibre's revenue and EPS to grow at a CAGR of 27% and 34%, respectively. That makes it one of the world's fastest-growing e-commerce companies. By comparison, analysts expect Amazon (NASDAQ: AMZN) and Sea Limited (NYSE: SE) -- which both tried in vain to challenge MercadoLibre in Latin America -- to grow their revenue at a CAGR of 11% and 21%, respectively, from 2024 to 2027. 3. It looks reasonably valued relative to its growth potential MercadoLibre's stock has already rallied nearly 40% this year, but it still doesn't seem too pricey relative to its e-commerce peers at 35 times next year's earnings. Amazon trades at 29 times forward earnings, while Sea trades at a higher forward multiple of 40. MercadoLibre's valuations are likely being compressed by the near-term concerns about tariffs, inflation, and political unrest across several of its top markets. The devaluation of Latin American currencies against the U.S. dollar (in which MercadoLibre reports its earnings) could be exacerbating that pressure. But if those headwinds eventually dissipate, MercadoLibre's stock could command a much higher valuation again. How much bigger could MercadoLibre grow? Assuming MercadoLibre matches analysts' expectations through 2027, grows its EPS at a robust CAGR of 20% over the following 18 years, and trades at a reasonable 30 times earnings by the final year, its stock price could potentially climb more than 30 times to $71,480 by 2045. That price target sounds high, but it would only boost its market cap to $3.6 trillion. For reference, Amazon currently has a market cap of $2.4 trillion -- and it will likely be worth a lot more in 20 years. Therefore, if you expect MercadoLibre to maintain its leading position in Latin America's e-commerce and fintech markets, expand its margins as it scales up its business, and weather the region's near-term macro headwinds, then it's still an excellent long-term buy. Should you invest $1,000 in MercadoLibre right now? Before you buy stock in MercadoLibre, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and MercadoLibre wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Leo Sun has positions in Amazon and MercadoLibre. The Motley Fool has positions in and recommends Amazon, MercadoLibre, and Sea Limited. The Motley Fool has a disclosure policy. Prediction: Buying MercadoLibre Today Could Set You Up for Life was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
16 minutes ago
- Business Insider
Morning Movers: Dayforce surges after potential Thoma Bravo acquisition reports
Stock futures are drifting lower this morning as investors lean into a busy week headlined by Jackson Hole central bank speeches and earnings from major retailers. Small caps are showing outperformance, suggesting rotation after recent megacap strength, particularly in tech. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Geopolitical developments are adding weight as markets are monitoring the potential implications of President Trump's meeting with Ukrainian President Zelensky and European leaders as Washington seeks support for a Ukraine–Russia peace initiative. In pre-market trading, S&P 500 futures fell 0.09%, Nasdaq futures fell 0.14% and Dow futures are flat. Check out this morning's top movers from around Wall Street, compiled by The Fly, and subscribe to the Fly By if you want to know how the markets will open, which stocks will be moving and why. HIGHER – Dayforce (DAY) up 25% after Bloomberg reported Thoma Bravo is in talks to acquire the company Soho House (SHCO) up 16% after entering into definitive agreements pursuant to which an investor group led by MCR and its chairman and CEO Tyler Morse will acquire the outstanding shares not held by certain significant shareholders TeraWulf (WULF) up 11% after reporting Google (GOOGL) will provide an incremental backstop of $1.4B in support of project-related debt financing and will receive warrants to acquire shares of TeraWulf common stock Tonix Pharmaceuticals (TNXP) up 4% after announcing that the FDA approved Tonmya for the treatment of fibromyalgia in adults Novo Nordisk (NVO) up 4% after announcing that the FDA has approved an additional indication for Wegovy based on a supplemental New Drug Application for treatment of noncirrhotic metabolic dysfunction-associated steatohepatitis in adults with moderate to advanced liver fibrosis DOWN AFTER EARNINGS – Riskified (RSKD) down 13% LOWER – Strategy (MSTR) and Coinbase (COIN) both down 1% after bitcoin dipped as heightened macro concerns triggered more than $500M in forced selling of long positions. Tesla (TSLA) down 1% after The Times reported British motorists can lease a Tesla EV for about half the cost it was a year ago as the company attempts to boost its faltering sales in the UK
