[US Stock Trends] Two Attractive Stocks to Watch: Mercado Libre [MELI] and Rocket Lab [RKLB] | Motley Fool US Stock Information | Moneyクリ Money Forward Securities Investment Information and Financial Media

Motley Fool U.S. Headquarters - July 1, 2025, from the posted article

Due to the impact of U.S. tariffs and other factors, Apple's [AAPL] situation has changed compared to when it was making significant progress, with its stock price declining nearly 20% since entering 2025. Among the "Magnificent Seven" (Apple, Alphabet [GOOGL], Amazon.com [AMZN], Microsoft [MSFT], NVIDIA [NVDA], Meta Platforms [META], Tesla [TSLA]), it has become one of the two stocks performing poorly alongside Tesla.

Here, we will introduce two other attractive companies besides Magnificent Seven.

MercadoLibre [MELI]

First, the first is Mercado Libre [MELI].

The charm of Mercado Libre lies in its solid financial performance and the long-term tailwinds that are expected to drive the company's growth over the next several years.

Mercado Libre operates the largest e-commerce network in Latin America, generating $22.4 billion in revenue over the past 12 months. In the latest quarter (January - March 2025), total sales showed an astonishing growth of 37%, and net profit surged by 44%. The gross merchandise volume (GMV) increased by 17% overall, with Argentina alone soaring by 126%.

In addition to the strong performance of e-commerce, the company's fintech division, Mercado Pago, continues to grow rapidly. The monthly active user count (MAU) has reached 64 million, representing a 31% increase compared to the same period last year. This indicates that the company is rapidly expanding this profitable business that provides loan services to customers.

Finally, it is important to note that e-commerce in Latin America is still in its early stages, as much of the region is in the process of developing the infrastructure needed to support an e-commerce economy. Mercado Libre is at the forefront of this, rapidly expanding its logistics network to reduce fulfillment costs (the operational costs from order to delivery completion) and to expand free shipping as much as possible.

That said, Mercado Libre stocks also come with risks. In particular, the economies of Latin American countries tend to be unstable. If the economy worsens, it could quickly have a negative impact on the rapid growth of Mercado Libre.

Therefore, investors need to respond carefully. Although the long-term outlook for Mercado Libre remains bright, it is necessary to prepare for volatility in the short term.

Rocket Lab [RKLB]

Next, let's take a look at Rocket Lab [RKLB]. Rocket Lab provides a small satellite launch service using reusable rockets and adopts a business model similar to one of its main competitors, SpaceX. However, its scale is much smaller. In 2024, Rocket Lab launched 16 missions, while SpaceX conducted launches for 138 missions.

That said, the demand for space launches is increasing as the space-based infrastructure continues to grow. Consider the everyday tools that rely on space equipment, such as weather satellites, navigation aids, mapping and reconnaissance devices, and communication lines. As the demand for these tools on Earth increases, there is a need to deploy more and higher-performance equipment into space.

Furthermore, the demand for military and intelligence equipment in space is becoming urgent. Therefore, Rocket Lab is partnering with the U.S. Department of Defense and various military and defense-related companies.

Rocket Lab's performance has been strong, with its stock price rising nearly 600% over the past 12 months. The main factor behind this is robust revenue growth. In the last 12 months, sales increased by 43%, from $327 million to $466 million. However, the company has not been able to generate sufficient profits, and with free cash flow also being negative, this may lead some investors to exclude this stock from their investment targets.

The space economy is a new field, but it is not without competition. Specifically, SpaceX and Blue Origin, backed by wealthy founders Elon Musk and Jeff Bezos, are fierce competitors in this field.

There are risks like this, but Rocket Lab could represent an opportunity for optimistic investors in the space economy. If Rocket Lab can continue to successfully execute missions, the company's key metrics and stock price are likely to rise.

Disclaimer and Disclosure The article is intended solely for general informational purposes and does not constitute investment advice for investors.

Alphabet executive Suzanne Frey is a member of the board of directors of The Motley Fool's U.S. headquarters. Former Facebook market development director and spokesperson Randi Zuckerberg, who is the sister of Mark Zuckerberg, CEO of Meta Platforms, is also a member of the board of directors of The Motley Fool's U.S. headquarters. John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon.com, is a member of the board of directors of The Motley Fool's U.S. headquarters. The author of the original article, Jake Lerch, owns shares in Alphabet, Amazon.com, MercadoLibre, NVIDIA, Rocket Lab, and Tesla, and holds the following options: a long position in a Microsoft $425 put expiring in July 2025. The Motley Fool's U.S. headquarters holds and recommends shares in Alphabet, Amazon, Apple, MercadoLibre, Meta Platforms, Microsoft, NVIDIA, Rocket Lab, and Tesla. The Motley Fool's U.S. headquarters recommends the following options: a long position in a Microsoft $395 call expiring in January 2026, and a short position in a Microsoft $405 call expiring in January 2026. The Motley Fool has established a disclosure policy.