Sea Limited, together with its subsidiaries, engages in the digital entertainment, e-commerce, and digital financial service businesses in Southeast Asia, Latin America, rest of Asia, and internationally. It offers Garena digital entertainment platform for users to access mobile and PC online games, as well as eSports operations. The company also operates Shopee e-commerce platform, a mobile-centric marketplace that provides integrated payment and logistics infrastructure and seller services. In addition, it offers SeaMoney digital financial services to individuals and businesses, including offline and online mobile wallet, and payment processing services, as well as other offerings across credit, insurtech, and digital bank services under the ShopeePay, SPayLater, SeaBank, SeaInsure, and other digital financial services brands; and payment processing services for Shopee. The company was formerly known as Garena Interactive Holding Limited and changed its name to Sea Limited in April 2017. Sea Limited was incorporated in 2009 and is headquartered in Singapore.

Sea Limited

Key Points
Berkshire Hathaway's post-Buffett outlook still looks bright.
MercadoLibre dominates the e-commerce market in Latin America.
Long-term investing has many advantages over day trading. It turns out that most who engage in the latter don't make much -- if any -- profit. That's not that surprising, since it's hard to predict the market's day-to-day movement. In contrast, we know that in the next decade, broader equities will deliver competitive returns relative to other asset classes.
So, buying shares of excellent companies and holding them through good and bad times, versus looking for an opportunity to make a quick profit, is the way to go. But which stocks should investors buy? Let's consider two that could produce superior returns during the next decade: Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) and MercadoLibre (NASDAQ: MELI).
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1. Berkshire Hathaway
Berkshire Hathaway is changing. Charles Munger, Warren Buffett's longtime friend and business partner and one of the conglomerate's architects, died a few years ago. Buffett himself is stepping down as chief executive officer at the end of this year. With the two men most responsible for Berkshire Hathaway's success over the past few decades no longer at the helm, can the company continue performing well?
My view is that it can. Buffett and Munger built a rock-solid, highly diversified business with subsidiaries in many different industries, from insurance to energy, apparel, and more. The company also has a fantastic portfolio with more than three dozen holdings.
More importantly, Buffett and Munger trained the next generation of leaders. They imparted their knowledge and investing philosophy to men like Greg Abel, the company's next CEO; Ajit Jain, the vice chairman of insurance operations; and Todd Combs and Ted Weschler, who are investment managers with the company and have been responsible for 10% of the conglomerate's portfolio for some time.
The next few years might be a bit challenging for Berkshire Hathaway as this next generation of leaders tries to show that, despite Buffett and Munger's absence, they can still get it done. But in my view, Berkshire Hathaway could still deliver monster returns over the long run, and the stock is still worth investing in today.
2. MercadoLibre
MercadoLibre is the leading e-commerce player in Latin America, a region where operating isn't always easy for various reasons. Having a presence and a functioning logistics network across multiple countries with varying laws and cultures is challenging enough, but the political instability that sometimes affects some Latin American countries makes it even harder. Still, MercadoLibre has found tremendous success despite all that. Revenue growth remains strong, and it has been consistently profitable during the past few years.
MercadoLibre's long-term outlook looks attractive for several reasons. First, there is the strong economic moat the company has built. As the leading e-commerce platform in the region, it benefits from strong network effects. The more merchants use its platform, the more attractive it is to consumers, and vice versa. Since the company offers a range of services beyond e-commerce, including shipping solutions, fintech, and a platform that helps merchants create online storefronts, MercadoLibre also benefits from high switching costs.
These dynamics help explain why it has been able to survive competition, even from a giant like Amazon. And although other platforms, such as Sea Limited's Shopee, are making a push in the region, MercadoLibre is well-positioned to remain the leader over the next decade.
Second, there is a long runway for e-commerce opportunities. While we should see the sector expanding steadily in most regions, Latin America has been one of the fastest-growing regions in recent years. The increased shift to online retail will be another powerful tailwind for MercadoLibre.
Third, a growing middle class in Latin America means higher incomes and more spending on goods and services, which should buttress the retail landscape, including online. These factors should help power MercadoLibre in the next decade and beyond. The stock looks like a no-brainer for growth-oriented investors.
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Prosper Junior Bakiny has positions in Amazon, Berkshire Hathaway, and MercadoLibre. The Motley Fool has positions in and recommends Amazon, Berkshire Hathaway, MercadoLibre, and Sea Limited. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

2 Monster Stocks to Hold for the Next 10 Years

MercadoLibre MELI is slated to report third-quarter 2025 results on Oct. 29.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $7.25 billion, suggesting year-over-year growth of 36.55%. The consensus mark for earnings is pegged at $9.43 per share. The estimate indicates year-over-year growth of 20.43%.
MELI Earnings Surprise History
MELI’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average surprise being 14%.
MercadoLibre, Inc. Price and EPS Surprise
Earnings Whispers for MELI
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
MELI has an Earnings ESP of -0.21% and a Zacks Rank #4 (Sell) at present.
Top-Line Growth Estimates for Q3
The Zacks Consensus Estimate for third-quarter 2025 Argentina revenues is pegged at $1.56 billion, suggesting an increase of 51.4% from the figure reported in the year-ago quarter.
The consensus mark for Brazil revenues is pinned at $3.92 billion, indicating an increase of 34.5% from the figure reported in the year-ago quarter.
The consensus mark for Mexico revenues is pinned at $1.67 billion, indicating a 45.7% increase from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for revenues from other countries is pegged at $293.12 million, suggesting a 32.6% increase from the figure reported in the year-ago quarter.
Factors Shaping Upcoming Results of MELI
MercadoLibre is expected to have entered the third quarter of 2025 with concerning momentum despite delivering 34% year-over-year revenue growth in the prior quarter, as the operating margin contraction of 210 basis points implied rising profitability strain. The June expansion of Brazil’s free shipping program — cutting the minimum threshold from BRL79 to BRL19 — is likely to have continued eroding margins through the quarter to be reported, driven by higher fulfilment and subsidy costs. Elevated marketing expenses are expected to have persisted as the company defended its share against intensifying competition from Amazon (AMZN), Sea Limited (SE) and Nubank (NU).
Competitive dynamics across Latin America are expected to have remained intense, shaping a more challenging backdrop for MELI. In Brazil, Amazon’s continued logistics buildout likely enhanced delivery speed and product breadth, narrowing MELI’s advantage in convenience and assortment. Sea Limited’s Shopee platform is expected to have sustained strong traction through aggressive discounting and interactive shopping tools, likely diverting lower-ticket purchases and weighing on take rates and order values. Meanwhile, Nubank’s expanding financial ecosystem across credit cards, payments and investments is expected to have intensified pressure on Mercado, limiting engagement and share gains in Brazil and Mexico.
Political and macroeconomic conditions are expected to have further complicated MELI’s performance. In Argentina, corruption allegations involving President Milei’s administration likely heightened uncertainty and weakened consumer sentiment, while depreciation of the peso and real is expected to have pressured reported revenue and inflated FX losses. Higher local interest rates likely curbed credit expansion, and the persistently elevated 18% non-performing loan ratio over 90 days is expected to have sustained asset quality concerns.
Despite all these pressures expected to weigh on the quarter under review, MercadoLibre’s continuous efforts to deepen customer engagement through enhanced logistics, targeted marketing and product diversification are expected to have supported revenue momentum. Even though rising credit risk remains a concern, the company’s strong advertising traction, growing base of fintech users, and sustained strength in Brazil and Mexico likely contributed positively to top-line growth. MELI’s third-quarter performance is expected to reflect steady operational momentum across commerce and fintech, though overall efficiency and margins are likely to have remained constrained. Persistent macro volatility, tighter financial conditions, and heightened regional competition are expected to have limited the extent of profitability recovery despite sustained revenue growth.
MELI Price Performance & Stock Valuation
MercadoLibre’s shares have advanced 27.1% year to date, outpacing the Retail-Wholesale sector’s 7.1% increase and the S&P 500’s 16.6% rise. In comparison, Amazon has added 2.2%, while Sea Limited and Nubank have delivered stronger returns of 45.8% and 52.9%, respectively. The performance, though strong, trails key regional peers, suggesting that persistent margin pressures and intensifying regional competition may have limited the stock’s relative momentum.
MELI’s YTD Price Performance
Image Source: Zacks Investment Research
Compared to the broader Zacks Internet–Commerce industry, MELI’s valuation remains elevated despite the prospect of a softer quarter. The stock currently trades at a forward 12-month Price-to-Sales of 3.2X, versus the industry average of 2.23X. This wide premium appears difficult to justify given margin pressures and slowing operating leverage, indicating that the current valuation may already overstate near-term growth potential. The Value Score of D further reinforces this view, suggesting stretched multiples and limited scope for re-rating until earnings visibility improves. With such premium valuations, investors should consider reducing exposure before potential volatility surrounding the upcoming quarterly results.
MELI Trades at a Premium
Image Source: Zacks Investment Research
Conclusion
MercadoLibre’s third-quarter results are expected to reveal resilient revenue growth but persistent pressure on margins amid higher fulfilment costs, FX volatility and competitive intensity. With operating leverage yet to recover and valuation still elevated, the near-term outlook remains cautious. The stock’s premium valuation further limits upside potential, indicating that near-term growth optimism is already priced in amid moderating earnings momentum. MercadoLibre currently has a Zacks Rank #4 (Sell), which implies investors should stay away from the stock right now.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

MercadoLibre's Pre-Q3 Earnings Analysis: Hold or Fold the Stock?

The VictoryShares International Free Cash Flow Growth ETF is seeing unusually high volume in afternoon trading Thursday, with over 531,000 shares traded versus three month average volume of about 75,000. Shares of GRIN were up about 1% on the day.
Components of that ETF with the highest volume on Thursday were Technipfmc, trading up about 6.8% with over 4.2 million shares changing hands so far this session, and Shopify, up about 2.1% on volume of over 2.1 million shares. Sea is lagging other components of the VictoryShares International Free Cash Flow Growth ETF Thursday, trading up by about 0.1%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Thursday's ETF with Unusual Volume: GRIN

Key Points
Form 13Fs, filed quarterly, provide an invaluable snapshot for investors of which stocks Wall Street's greatest money managers have been buying and selling.
Billionaire Stanley Druckenmiller exited his fund's respective stakes in AI stocks Nvidia and Palantir -- and profit-taking may tell only part of the story.
One of the newest apples of Druckenmiller's eye is an internet-driven company that's decisively turned the corner to recurring profitability.
For many investors, earnings season is the most exciting period of each quarter. This is the six-week span where most S&P 500 components report their operating results and provide investors with a clear look at how healthy the U.S. economy and corporate America are.
But staying abreast on earnings reports isn't the way for investors to gain an edge. The quarterly filing for Form 13Fs with the Securities and Exchange Commission can be equally valuable.
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A 13F is a required filing no later than 45 calendar days following the end to a quarter for institutional investors with at least $100 million in assets under management. It provides a snapshot for investors of which stocks, exchange-traded funds (ETFs), and select options Wall Street's savviest fund managers have been buying and selling.
Though Warren Buffett is the ideal example of a money manager whose trades are closely followed by professional and everyday investors, he's not he only billionaire with a phenomenal investment track record. Duquesne Family Office's Stanley Druckenmiller knows a thing or two about finding amazing deals hiding in plain sight.
Druckenmiller oversees an active fund, with an average hold time for the 69 securities currently in Duquesne's investment portfolio of just 2.26 quarters (less than seven months). He's an especially big fan of growth stocks -- but also not shy about locking in gains when the opportunity presents itself.
Over a one-year stretch (July 1, 2024 – June 30, 2025), based on 13Fs, Duquesne Family Office's billionaire boss has sent Wall Street's artificial intelligence (AI) darlings Nvidia (NASDAQ: NVDA) and Palantir Technologies (NASDAQ: PLTR) packing, all while piling into a surging Singapore-based growth stock that's delivering double-digit sales growth from all three of its operating segments.
Profit-taking might not be the only reason Nvidia and Palantir stocks were sent packing
No trend has captivated the attention and capital of investors quite like AI has over the last three years. Empowering software and systems with AI solutions is a potential game-changer than can add trillions of dollars in global economic value in the years to come.
Nvidia's claim to fame is its graphics processing units (GPUs), which are the preferred choice by businesses as the brains of high-compute data centers. Nvidia's Hopper, Blackwell, and Blackwell Ultra chips have proved far superior to external AI-GPUs in compute potential, and CEO Jensen Huang intends to keep it that way. Huang is spearheading the launch of a new advanced AI chip on an annual basis.
Meanwhile, Palantir's jaw-dropping returns are the result of its two core AI-driven software-as-a-service (SaaS) platforms not being replicable at scale. Gotham is a SaaS platform relied on by the U.S. government and its close allies to plan and oversee military missions, as well as collect and analyze data. The other key platform, which is newer, is Foundry. This subscription-based service helps businesses better understand their data in order to streamline their operations.
In spite of these competitive edges, billionaire Stanley Druckenmiller parted ways with both stocks, in their entirety. During the third quarter of 2024, he dumped all 214,060 shares of Nvidia. As for Palantir, close to 770,000 shares were disposed of from June 30, 2024 through March 31, 2025.
The logical catalyst for exiting Wall Street's two-hottest AI stocks is profit-taking. With shares of Nvidia and Palantir soaring over the last three years, locking in gains made sense.
However, profit-taking might explain only part of the story behind Druckenmiller's selling activity.
In an interview with CNBC in May 2024, Duquesne's billionaire chief suggested, "AI might be a little overhyped now, but underhyped long term." Druckenmiller's words speak to the reality that investors have overestimated the adoption rate and early innings utility of every game-changing technological innovation for more than three decades.
Bubbles associated with next-big-thing trends have been something of the norm. If an AI bubble were to form and burst, Nvidia would likely be hit the hardest, with Palantir being dragged down in sympathy.
Druckenmiller may also be turned off by Nvidia's and Palantir's respective valuations. As of the closing bell on Oct. 17, Nvidia and Palantir were sporting respective trailing-12-month (TTM) price-to-sales (P/S) ratios of 27 and 131. For context, history tells us that leaders of next-big-thing trends have never been able to sustain TTM P/S ratios near/above 30 for any extended period.
This international growth stock is a new apple of Stanley Druckenmiller's eye
Based on the previous four 13F filings from Duquesne Family Office, billionaire Stanley Druckenmiller has overseen the addition of dozens of new stocks to his fund. One of the more eye-popping additions has to be internet-driven business Sea Limited (NYSE: SE), whose shares have rallied by 243% over the trailing-two-year period.
In the June-ended quarter, Duquesne's investment chief purchased 309,730 shares of Sea, which marks Druckenmiller's fourth separate instance of ownership in the company since the start of 2019.
During the early stages of the COVID-19 pandemic, Sea Limited was one of the hottest stocks on Wall Street. With people staying home, internet-based businesses thrived. Between the start of 2020 and October 2021, Sea's shares rose by more than 700%.
But there were also clear concerns that Sea was a flash in the pan. As the worst of the pandemic passed, its losses came into focus. The decision by management to forgo double-digit sales growth in favor of profits didn't initially sit well with Wall Street or investors. However, hindsight is 20-20, and it looks to have been a smart move by Sea's executive team.
Today, Sea Limited is quite profitable and once again growing its sales by 20% or more on an annual basis. This is due to all three of the company's operating segments expanding their respective top-lines by a double-digit percentage.
Historically, Sea's digital gaming division, known as Garena, has been its most-profitable segment. During the pandemic, online mobile game Free Fire enjoyed a surge in total players and paying gamers. As of the June-ended quarter, Sea had nearly 665 million active users playing mobile games, of which 9.3% were paying to play. This percentage is well above the industry average, which shows why this segment has consistently been the company's most profitable.
Sea's second (and newest) operating segment is digital financial services. With Sea operating in countries that are chronically underbanked, digital financial services can provide an unmet need. Sales were up 70% to almost $883 million in the June-ended quarter from the prior-year period, with non-performing loans holding firm at 1% of outstanding loans on a quarter-over-quarter basis.
But the bread-and-butter of Sea's operations is its e-commerce platform Shopee. Based on the $29.8 billion in gross merchandise value (GMV) processed in the June-ended quarter, Shoppe is pacing more than $119 billion in annual run-rate GMV. Flipping to profitability in this segment is key, as it offers a long runway of growth in regions where online retail sales are taking off.
If these three segments continue to fire on all cylinders, additional upside may be possible for Sea stock.
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Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia, Palantir Technologies, and Sea Limited. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Billionaire Stanley Druckenmiller Dumped His Fund's Stakes in Nvidia and Palantir to Pile Into an International Growth Stock That's Rallied 243% in 2 Years

Key Points
Matthews International Capital Management sold 106,055 shares of Sea Limited; estimated trade value of approximately $18.17 million.
The transaction represented a 4.23% change in reportable 13F assets under management for the quarter.
Post-sale, Matthews holds 213,226 shares valued at $38.11 million as of September 30, 2025.
Sea Limited remains the fund’s 2nd-largest holding, accounting for 8.87% of AUM as of September 30, 2025.
On October 16, 2025, Matthews International Capital Management disclosed the sale of 106,055 shares of Sea Limited (NYSE:SE) in Q3 2025.
This was an estimated $18.17 million trade based on average quarterly pricing for Q3 2025.
What happened
According to a filing with the Securities and Exchange Commission dated October 16, 2025, Matthews International Capital Management sold 106,055 shares of Sea Limited in Q3 2025.
The estimated value of the transaction was $18.17 million.
Following the trade, the fund’s position in Sea Limited stood at 213,226 shares as of September 30, 2025, valued at $38.11 million at quarter-end.
What else to know
The fund reduced its stake in Sea Limited to 8.87% of 13F AUM, maintaining it as its 2nd-largest holding.
Matthews' top holdings after the filing:
PDD Holdings: $65.27 million (15.3% of AUM)
Sea Limited:SE: $38.11 million (8.9% of AUM)
Legend Biotech: $33.54 million (7.9% of AUM)
Trip.com Group: $29.19 million (6.8% of AUM) as of September 30, 2025
Kanzhun: $24.06 million (5.6% of AUM) as of September 30, 2025
As of October 16, 2025, shares of Sea Limited were priced at $162.65, up 63.68% over the last year, outperforming the S&P 500 by 54 percentage points over the same period.
Company overview
Price (as of market close 2025-10-16)
$162.65
Market Capitalization
$95.24 billion
Revenue (TTM)
$19.42 billion
Net Income (TTM)
$1.20 billion
Company snapshot
Sea Limited operates in three main segments: digital entertainment (Garena), e-commerce (Shopee), and digital financial services (SeaMoney).
Its primary customer base includes consumers and small-to-medium businesses in Southeast Asia, Latin America, and other international markets seeking digital entertainment, online shopping, and financial solutions.
The company is headquartered in Singapore and employs more than 80,000 people worldwide.
Sea Limited is a leading digital platform company with significant scale in Southeast Asia and an expanding global reach. Its integrated ecosystem of gaming, e-commerce, and digital financial services offers diversified revenue streams.
Foolish take
Matthews International Capital Management loaded up on Sea Limited stock in early 2024 when it traded between $50 and $70 per share, making it a 9% position at that time.
Since then, Sea's stock has tripled, and Matthews has reduced the number of shares it owns in the company by two-thirds.
Despite this heavy selling after Sea's ascension, the stock still accounts for 9% of Matthews' portfolio. With this perspective in mind, it looks like Matthews' selling was more about rebalancing its portfolio than it was an indictment of Sea's operations.
Had the firm not sold any of its Sea shares from 2023, the company would account for nearly one-fourth of its AUM today.
That said, Sea still remains an important holding for Matthews as its second-largest position.
There is a lot to love about the company, as it reminds me of a Southeast Asian version of MercadoLibre -- but with the added bonus of a gaming segment.
Growing sales by 29% over the last year and now consistently generating positive net income and free cash flow, Sea remains a promising growth stock, so it makes sense for Matthews to keep holding its remaining shares.
Trading at 41 times forward earnings, Sea is slightly expensive, but could quickly outgrow this valuation, especially as it is firing on all cylinders right now.
Glossary
13F: A quarterly SEC filing by institutional investment managers disclosing their equity holdings.
Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Reportable 13F assets: The portion of a fund's assets that must be disclosed in 13F filings, typically U.S.-listed equities.
Quarter-end: The final day of a fiscal quarter, often used as a reference point for financial reporting.
Outperforming: Achieving a higher return than a benchmark index or comparable investment.
Filing: An official document submitted to a regulatory authority, such as the SEC, containing required disclosures.
Digital financial services: Financial products and services delivered through digital platforms, such as online payments or digital wallets.
Integrated ecosystem: A group of interconnected products or services designed to work together within a company.
TTM: The 12-month period ending with the most recent quarterly report.
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Josh Kohn-Lindquist has positions in Sea Limited. The Motley Fool has positions in and recommends Sea Limited. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Matthews International Capital Management Dumps $18 Million Worth of Sea Limited (NYSE:SE) Shares: Has the Stock Run Too Far?

Sea Limited Sponsored ADR (SE) closed the most recent trading day at $182.80, moving +1.1% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.56% for the day. Elsewhere, the Dow saw an upswing of 1.29%, while the tech-heavy Nasdaq appreciated by 2.21%.
The company's stock has dropped by 7.77% in the past month, falling short of the Computer and Technology sector's gain of 1.06% and the S&P 500's gain of 0.41%.
The investment community will be paying close attention to the earnings performance of Sea Limited Sponsored ADR in its upcoming release. It is anticipated that the company will report an EPS of $1.11, marking a 105.56% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $5.84 billion, up 36.81% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.04 per share and revenue of $23.2 billion, indicating changes of +140.48% and +36.97%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Sea Limited Sponsored ADR should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.34% higher. As of now, Sea Limited Sponsored ADR holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Sea Limited Sponsored ADR is currently exchanging hands at a Forward P/E ratio of 44.76. This denotes a premium relative to the industry average Forward P/E of 28.54.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 32% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Sea Limited Sponsored ADR (SE) Gains But Lags Market: What You Should Know

MercadoLibre’s MELI growth remains heavily anchored in Brazil, Mexico and Argentina, which together contribute over 82% of total revenues, a concentration that amplifies exposure to regional volatility. Brazil drives MELI’s core commerce and fintech operations, Mexico has emerged as a fast-growing hub for cross-border e-commerce and Argentina serves as a key fintech engine through Mercado Pago and credit expansion. This geographic skew leaves the company highly sensitive to inflation, currency swings and policy uncertainty across these economies.
In Brazil, persistent inflation and tight monetary policy continue to constrain consumer spending. The Selic rate, the country’s benchmark lending rate, remains elevated at 15%, restricting credit formation and pressuring discretionary demand, both central to MELI’s marketplace and payments growth. Argentina faces renewed political turbulence, with corruption allegations against the ruling administration reigniting uncertainty and driving further peso volatility. Mexico’s environment remains clouded by governance inefficiencies, entrenched corruption and security-linked disruptions that weigh on formal economic activity and slow digital adoption.
The Zacks Consensus Estimate for MELI’s third-quarter 2025 total revenues is pegged at $7.18 billion, indicating 35.08% year-over-year growth. The consensus mark for revenues from Brazil, Argentina and Mexico is pegged at $3.9 billion (up 34.5% year over year), $1.57 billion (up 52.4% year over year) and $1.64 billion (up 43.5% year over year), respectively, suggesting MELI’s overreliance on markets facing persistent macro stress. Elevated borrowing costs, weak consumer sentiment and political instability continue to strain operating leverage and cloud earnings visibility. Without broader diversification or tangible stabilisation in these key economies, this dependence could gradually evolve into a structural constraint, derailing the momentum that once powered MELI’s rise.
Regional Diversification Aids Peers’ Stability
While MELI continues to face challenges from its heavy regional exposure to Latin America, peers like Amazon AMZN and Sea Limited SE benefit from broader geographic diversification. Amazon draws strength from balanced revenue streams across North America, Europe and Asia, while Sea Limited operates across multiple Southeast Asian markets, reducing dependence on any single economy. Both Amazon and Sea Limited leverage scale and regional balance to mitigate macro risks, whereas MELI remains concentrated in Brazil, Mexico and Argentina, leaving performance vulnerable to localized economic and political volatility.
MELI’s Share Price Performance, Valuation and Estimates
MELI shares have jumped 25.4% in the year-to-date (YTD) period, while the Zacks Internet–Commerce industry and the Zacks Retail-Wholesale sector have increased 5.1% and 3.3%, respectively.
MELI’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MELI stock is currently trading at a forward 12-month Price/Sales ratio of 3.22X compared with the industry’s 2.23X. MELI has a Value Score of F.
MELI's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2025 earnings is pegged at $43.23 per share, down by 43 cents over the past 30 days. The estimate indicates 14.7% year-over-year growth.
MercadoLibre, Inc. Price and Consensus
MercadoLibre currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can MercadoLibre's Regional Dependence Derail Its Growth Momentum?

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MercadoLibre MELI shares have declined 13% over the past three months, underperforming the Zacks Retail-Wholesale sector and the Zacks Internet-Commerce industry’s growth of 3.4% and 5.7%, respectively.
The decline in MELI’s performance reflects investor concerns over its rapid credit expansion, heavy dependence on Latin American markets and intensifying competition from global peers. The stock’s pullback signals growing caution toward near-term business momentum and earnings visibility amid these structural challenges.
MELI Stock's Performance
Image Source: Zacks Investment Research
Rapid Fintech Expansion is Creating Structural Challenges
MELI’s fintech arm, Mercado Pago, is expanding at a pace that looks increasingly unsustainable. Fintech revenues jumped 40% year over year in the second quarter of 2025 to $2.95 billion, outpacing commerce revenue growth of 22% in the same period. Total payment volume climbed 39% to $64.6 billion, while the credit portfolio surged 91% year over year to $9.3 billion, a growth rate that raises serious questions about discipline and asset quality.
Credit cards accounted for 43% of MELI’s loan book during the second quarter, up from 37% a year ago, suggesting a shift toward higher-risk assets. Non-performing loans over 90 days remained high at 18.5%, and provisions continued to increase as MELI issued more than 1.5 million new cards during the quarter. Net Interest Margin After Losses fell to 23% from 31.1% last year, showing that returns are weakening even as exposure grows.
The Zacks Consensus Estimate for third-quarter 2025 total payment volume is pegged at $71.66 billion, indicating an increase of 32.9% year over year. While this points to continued traction in Mercado Pago, it also suggests the scale of exposure MELI carries into a volatile credit environment. Sustaining such growth without tightening lending standards could pressure future earnings and weigh on balance-sheet resilience.
Such rapid credit expansion leaves MELI vulnerable to default cycles in economies already facing inflationary pressures and volatile interest rates. Rather than reinforcing its fintech moat, this credit-driven growth strategy is amplifying risk concentration and undermining the stability of future earnings. Unless the company imposes stricter underwriting standards and reduces dependence on credit-led growth, its fintech arm could shift from a growth catalyst to a structural liability.
Intensifying Competitive Threats From Superior Alternatives
Rising competition is testing MELI’s leadership across Latin America. Amazon AMZN is expanding its logistics and delivery network in Brazil and Mexico, narrowing MELI’s fulfilment advantage. Amazon’s scale and its ability to cross-subsidise e-commerce with profits from cloud and advertising give it flexibility that MELI lacks. To counter Amazon’s growing reach, MELI continues to lower shipping thresholds and increase marketing spend, moves that lift volume but pressure efficiency.
Sea Limited’s SE Shopee platform has gained traction in Brazil and Mexico by targeting value-focused shoppers through flash discounts and gamified engagement. Shopee’s rise is prompting MELI to defend its share in price-sensitive categories such as fashion and consumer electronics. As Sea Limited broadens its seller base, competition for merchants is intensifying.
Meanwhile, eBay EBAY is expanding its cross-border marketplace, offering regional sellers global visibility at lower fees. eBay’s established brand trust and strategic partnerships are drawing merchants from MELI’s ecosystem. Collectively, Amazon, Sea Limited and eBay are reshaping Latin America’s e-commerce market, forcing MELI to spend more to sustain growth.
Geographic Concentration Amplifies Regional Risk
MELI’s reliance on Brazil, Argentina and Mexico leaves it heavily exposed to regional volatility, offering little protection against policy or currency shocks. These three markets accounted for more than 90% of total revenues in the second quarter of 2025, highlighting the company’s limited geographic breadth.
In Brazil, FX-neutral gross merchandise volume grew 29% year over year in the second quarter of 2025, helped by lower free-shipping thresholds that lifted transaction volumes but weighed on pricing discipline. The Zacks Consensus Estimate for third-quarter 2025 Brazil revenues is pegged at $3.62 billion, up 17.4% year over year, while consensus marks for Argentina and Mexico revenues are pegged at $1.56 billion and $1.54 billion, increasing 14.2% and 10.3%, respectively.
Argentina remains the primary challenge within MELI’s regional mix. The economy continues to struggle with persistent inflation and currency volatility, both of which have weighed on consumer spending and business confidence. These conditions led to a $117 million foreign-exchange loss in the second quarter of 2025, directly impacting profitability. With such concentrated exposure, MELI’s earnings outlook remains vulnerable to further currency depreciation and uneven recovery trends across Latin America.
Investment Thesis and Recommendation
MELI is trading at a premium compared to the broader Zacks Internet-Commerce industry. The stock currently carries a forward P/E of 36.63X, well above the industry average of 24.74X and the broader Retail-Wholesale sector’s 24.9X. MELI holds a Value Score of D, reinforcing an unattractive valuation setup at present.
This premium appears difficult to justify given the company’s rapid credit expansion, concentrated exposure to Brazil, Argentina and Mexico and rising competition from Amazon, eBay and Sea Limited. Each of these factors adds pressure to earnings visibility and amplifies risk at a time when growth is already moderating.
MELI’s P/E F12M Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $9.88 per share, unchanged over the past 30 days. While the estimate still points to 26.18% year-over-year growth, the combination of an elevated valuation, slowing momentum, and persistent regional uncertainty makes the stock’s risk-reward profile unattractive at current levels.
MercadoLibre, Inc. Price and Consensus
Conclusion
MercadoLibre’s near-term outlook remains challenged by rising credit exposure, intensifying competition and heavy reliance on a few volatile markets. Despite continued top-line growth, profitability pressures and an overstretched valuation make the stock look unattractive at current levels. Given these trends, MercadoLibre’s Zacks Rank #4 (Sell) appears well-justified, and investors should stay away from the stock for now.
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MELI Falls 13% in Three Months: Should You Hold or Fold the Stock?

Sea Limited Sponsored ADR (SE) closed the most recent trading day at $184.22, moving +1.21% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.06%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.39%.
Shares of the company witnessed a gain of 0.57% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 8.78%, and the S&P 500's gain of 3.94%.
The investment community will be closely monitoring the performance of Sea Limited Sponsored ADR in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.11, marking a 105.56% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.84 billion, indicating a 36.81% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.04 per share and a revenue of $23.2 billion, signifying shifts of +140.48% and +36.97%, respectively, from the last year.
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The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% of all 250+ industries.
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Indicator	TTM Median
P/E	0.00 18.21
Price/Sales	3.70 0.65
P/B	9.30 1.75
P/FCF	30.48 14.46

Indicator	TTM Median
ROE	-3.14 15.91
ROA	-1.12 5.60
ROI	-2.16 9.40
Net Worth	53.40 0.91
Quick Ratio	1.48 0.91
Current Ratio	1.50 1.45

Indicator	TTM Median
Net Profit Margin	-1.47 6.40
Operating Margin	-0.21 8.93
Gross Margin	42.20 38.46
Return on tangible equity	-3.21 23.70

Indicator	TTM Median
EPS	0.00 0.43
EPS Forecast	0.26 0.39
Revenue	3.81B 184.50M
Gross Profit	1.59B —
EBITDA	83.00M —

Sea Limited

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue