Several fintech companies from Brazil and the wider Latin America region are flexing their muscles. free market (Melly) is in buy zone, and Warren Buffett supports stone company (STNE) and Nu Holdings (NU) close to the buying point and local (Delo), XP Company (XP) and pagseguro (PAGS).
StoneCo, Nu Holdings, XP and PagSeguro are all based in Brazil, but Brazil is also the largest market for MercadoLibre and dLocal. The Brazilian economy is on an upward trend, and growth expectations continue to increase. Internet users have increased significantly and the unbanked population is relatively large, creating huge opportunities for fintech companies.
MercadoLibre, XP and DLO stocks are in IBD50.
free market stocks
MercadoLibre is often described as Amazon (Amazon), both are e-commerce giants. But Amazon has a massive cloud computing arm in Amazon Web Services, and MercadoLibre has a booming payments business.
MercadoLibre’s third-quarter profit soared 180% from the same period last year, and revenue grew 35% to $3.76 billion, both of which grew faster than in the second quarter.
MELI stock broke above the 200-day and 50-day lines in early November, driven by strong third-quarter results. This provides the opportunity for early entry. On November 14, MercadoLibre stock broke out Cup holder with handle The buying point is 1,398.59.The stock is still at buying area.
this relative strength line Also at a two-year high, reflecting MELI stock outperforming the S&P 500 Index. The RS line is the blue line in the provided chart.
Javier Milei, variously described as a populist or liberal, won Argentina’s presidential runoff on Sunday. The results could impact Argentinian stocks such as MercadoLibre.
MELI shares edged higher in early trading Monday.
Warren Buffett Stocks: StoneCo
StoneCo provides payment solutions to small and medium-sized businesses in Brazil.
On November 10, StoneCo announced that its third-quarter profits surged 306%, with revenue growing 35% to US$623.9 million. The company also announced plans to repurchase STNE shares worth US$260 million.
Warren Buffett’s Berkshire Hathaway purchased a stake in StoneCo in October 2018 during the STNE stock IPO. StoneCo’s stock price was $24 per share, rising to $95.12 in early 2021 before plummeting to $6.81 in May 2022. Shares have since rebounded.
On November 11, STNE’s stock price gapped above the 200-day moving average due to heavy profits and entered the market in early trading. The stock price continues to rise, approaching 14.83 bottom of cup Buy some. Now that it has extended significantly from the 50-day line, holding the handle or at least a pause would help.
PagSeguro assists Brazilian companies without e-commerce websites to enable payments.
In the third quarter, PagSeguro’s profit increased by 18%, accelerating growth for the second consecutive quarter. Sales grew 7% to US$800 million, a steady growth of 7%.
PAGS stock went public in January 2018 at $21.50 per share. There were some big moves along the way, with PagSeguro stock peaking at $62.83 in February 2021. Shares finally bottomed out on November 1st, at least for now at $6.93.
Shares have regained the 50-day moving average and are testing the 200-day moving average. A decisive move above the 200-day moving average would also break the trendline dating back to May, providing an aggressive entry opportunity. However, investors may be hoping that PagSeguro stock can build a base following a meaningful uptrend.
On November 13, the Brazilian brokerage reported third-quarter earnings per share growth of 15%, while sales growth accelerated for the second consecutive quarter, reaching 23%.
XP stock went public in December 2019 at $27 per share. After the coronavirus slump, the stock surged to $52.94 in August 2022, then peaked at $53.08 in September 2021. XP stock plummeted all the way to $10.30 in March 2023 before surging to $27.67 in late July.
According to reports, the stock is currently trading at a consolidation buy point of 27.71 Market Smith AnalysisXP has regained its 50-day line. A break above the November 17 high of 23.92 will trigger the trend line for early entry.
D local inventory
The Uruguay-based cloud payments company saw profit and sales growth accelerate in both quarters, growing 50% and 59% respectively in the second quarter.
DLocal will report third-quarter results on Nov. 21.
DLO stock went public in June 2021 at $21 per share. A few months later, DLocal shares reached $73.43 before falling all the way to $9.04 in May 2023. Shares have since more than doubled.
DLO shares soared 32% on August 16 following the announcement of second-quarter results and the hiring of MercadoLibre’s chief financial officer as its new chief executive.
Since then, the stock price has begun to consolidate. DLocal stock is just above its 50-day line and on the cusp of a trendline entry. Investors can use the November 15 high of 19.35 as a specific trigger point. However, buying dLocal before it becomes profitable would be high risk.
The official buy point for DLO stock is 24.22.
Warren Buffett Stocks: Nu Holdings
Nu Holdings provides a digital banking platform that offers abundant opportunities to Brazil’s newly digitized and unbanked population.
Earnings per share soared to 6 cents in the third quarter, compared with 1 cent a year earlier. Revenue grew 64% to $2.14 billion, up from 61% in the second quarter.
Warren Buffett invested in Nu Holdings around the time of its IPO in December 2021, with NU shares trading at $9.
Shortly after the IPO, the stock hit 12.24 before falling to 3.26 in June 2022. NU stock broke out of its long-term bottom in May 2023 before rising to 8.29 on July 13.
The stock price bottomed out at 8.29 in early November and briefly extended it on November 14th.
Following the earnings release, shares fell back below the buy zone before finding support near the 50-day line. NU shares trade just below 8.29 which is still in effect buy some.
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