I’ve been buying heavily as of late. Price is down considerably since the above posts but the business is doing exceptionally well to my mind. 41% fx neutral revenue growth this last quarter, substantial growth in new users, still explosive GMV growth, etc. And a management team clearly devoted to building a moat (in the form of an ecommerce & banking system devoted to the special challenges of LATAM market).

An understandable concern is the drop in margins, but all evidence to date points to the investments being good value for the money. Credit quality and NIMAL appear healthy. If you simply let the ecommerce sales growth build into the infrastructure spend and stop the credit card issuance growth, that’s already 4-5% reversion in margins. That doesn’t account for the high margin ads business, which is growing at a 50%+ clip (due in part to the ecommerce and fintech investments).

5 years out (FY 2031) they’re very likely materially over 100 billion in revenue, notwithstanding an expected slowdown from their 31 straight quarters of 30%+ revenue growth, with 7-8% net margins being a conservative base case target. SBC drag is very minor especially compared to peers. Put those together and EPS in 2031 is about 4x 2026 earnings.

Not a prediction but what I think is an illustration of the strength of the underlying business.