Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought

Ark Invest added to Archer Aviation, MercadoLibre and Nu Holdings on Monday as their shares faced sharply different risks: Archer is still years from profitability, while MercadoLibre and Nu fell 8% and 17%, respectively, amid a selloff following Brazil’s election result. Brazil’s currency fell 8% and the largest Brazil-focused ETF lost 20%; MercadoLibre’s latest-quarter revenue nevertheless grew 50% year over year, and Nu has recorded at least 30% business growth for six consecutive years. Archer’s projected revenue rises from $15 million in 2026 to $2.25 billion in 2030, though the article says profitability is at least three years away.

Analysis

The key distinction is exposure quality, not simply whether Monday’s selling was political. A weaker real can pressure reported results and purchasing power across both MELI and NU; for NU, the more consequential second-order risk is weaker borrower capacity feeding into delinquencies, credit costs, and lower earnings estimates. MELI’s broader regional footprint and commerce ecosystem offer some insulation, but do not eliminate Brazil-related FX and demand exposure. Track currency and credit indicators separately rather than treating the stocks as equivalent “Brazil bargains.”

Over 1–3 months, the risk is estimate revisions arriving after the initial risk-off move, particularly for NU. A reversal in the real or stable credit-quality metrics would weaken that downside case; rising delinquencies, funding costs, or lower guidance would confirm it. For ACHR, the long-run opportunity remains contingent on certification and commercial execution: projected revenue does not resolve the near-term gap between development spending and realized sales. Any delay could renew dilution concerns even if the addressable market remains attractive. The near-term catalyst is evidence of regulatory and operational progress, not demonstrations alone.

Contrarian angle: a sharp country-risk selloff can create an entry in MELI if its regional growth and execution remain intact, but price weakness alone is not proof of mispricing. Ark’s buying is not independent evidence of fundamentals or a catalyst.

Key Decisions for Investors

• Consider a staged long in MELI after the initial FX shock, with position size capped by Brazil exposure. Add only if regional growth and guidance hold; thesis weakens if the real continues to slide alongside deteriorating operating outlook.
• Prefer MELI over NU as a relative-value expression of LatAm growth: long MELI / short NU, beta- and currency-adjusted. This targets NU’s greater sensitivity to Brazilian credit conditions; close or reassess if NU credit quality remains stable and its earnings outlook avoids meaningful cuts.
• Keep ACHR on a milestone watchlist rather than buying the revenue curve. Revisit after verifiable FAA progress and evidence of funded production capacity; certification slippage or financing/dilution needs would invalidate the bullish setup.
• Monitor the real, Brazilian sovereign-risk pricing, and NU delinquency/credit-cost disclosures over the next quarter. A currency rebound with stable credit metrics supports buying weakness; further FX stress plus worsening credit data argues for reducing Brazil-linked exposure.