2 Monster Stocks That Are Crushing the S&P 500 This Year

Group 1: MercadoLibre - MercadoLibre is the largest e-commerce player in Latin America, demonstrating a strong market position that even Amazon struggles to compete against [2] - The company operates multiple segments, including fintech, logistics, and online storefront services, providing a comprehensive suite of services that enhances its competitive advantage [2] - MercadoLibre benefits from network effects and switching costs, creating a strong moat essential for delivering above-average long-term returns [3] - In Q2, MercadoLibre's revenue increased by 42% year over year to $5.1 billion, with net income soaring by almost 103$531 million [4] - The growth of e-commerce is expected to continue, positioning MercadoLibre favorably to capitalize on the shift to online retail transactions [4] Group 2: Netflix - Netflix remains a dominant player in the streaming industry despite increased competition, having adapted by introducing a lower-priced ad-supported subscription and addressing password sharing [5] - In Q2, Netflix's revenue rose by 17% year over year to $9.6 billion, with net income increasing by 44$2.1 billion, and paid memberships growing by 16.5% to 277.65 million [5][6] - The company's ecosystem allows it to leverage viewer data to enhance content production, benefiting from network effects that drive subscriber growth [6] - There is significant growth potential in the streaming industry, with Netflix aiming to capture more market share from traditional cable, which still holds a substantial portion of television viewing time [6]