Nubank and MercadoLibre have been stuck in mud for years, Shay says. The stock prices have not really gone anywhere, but the businesses have executed in the meantime. MercadoLibre has grown over 30% for 30 straight quarters. Nubank has 62% of Brazil's adults as customers and serves each one for about a dollar a month. The episode was recorded the week Brazil had its best market day since March 2020.

Fede Sandler joins the guys. He was head of investor relations at MercadoLibre and worked on Nubank's investor relations team through its IPO. Shay calls the two companies the PayPal and Amazon of Latin America, and the question the episode keeps coming back to is why even bother investing in Latin America.

They get into what Brazil's election means for both stocks, Nubank's moat and runway in Brazil, its move into the US, the MercadoLibre growth engine and why management will not optimize for short term margins, the competition from Amazon and Sea Limited, and Fede's favorite Latin American stock outside these two.

Fede says Mercado Pago will be more valuable than MercadoLibre itself over time. It has not happened yet, and he says they are getting there. Shay owns MercadoLibre and does not own Nubank, because he feels owning both would be duplicative. His thesis is that Latin America is growing at a rapid pace and is underserved. Brad's general view on both is bullish. He says MercadoLibre will invest as much as it needs to keep compounding, while Nubank puts guardrails on its US expansion.

Fede is @FedexSTi on X. Tell the guys which stock deserves the next deep dive.

Watch the full episode with chapters on YouTube: https://youtu.be/rcQrEJKSlOY

New episodes every Monday on The Deep End.

Nothing in this episode is investment advice. Shay discusses his own portfolio, and he owns MercadoLibre and does not own Nubank. Brad's general view is bullish. Fede said on the show that Nubank and MercadoLibre are two of his largest holdings.