Stock Prices See Correction, Opportunities for Long-Term Investors

Stock markets face volatility with the Nasdaq in correction. This opens doors to long-term investors. Companies like Starbucks and MercadoLibre are highlighted as promising deals after recent price drops.

Date: 12-03-2025

AI Rating: 7

The recent report indicates that the Nasdaq Composite index is officially in a correction, with a downtrend of approximately 12% from its recent high. This trend suggests a shifting market landscape where long-term investors can find bargains amidst declining stock prices.

Starbucks (SBUX) is noted for its potential as an attractive investment opportunity, having experienced a 15% decline from its peak. Under CEO Brian Niccol, the company has focused on revitalizing growth with operational changes and addressing customer experience. However, despite a reported 6% decline in customer traffic year-over-year, there are positive signs, with same-store transactions notably improving by 200 basis points. The revenue growth of 5.7% in North America is a key indicator that Starbucks is maneuvering towards recovery.

MercadoLibre (MELI) also presents a compelling growth narrative despite experiencing a decline following its recent peak. The marketplace reported a 27% increase in item sales year-over-year. Importantly, profitability concerns have eased as operating and net margins stabilized, which is critical for investors focusing on long-term growth potential. Additionally, factors such as the growing e-commerce landscape and advancements in logistics suggest that robust growth may persist in the future. The stock's drop of about 16% in a short period makes it a potential acquisition target for investors seeking stocks at a discount.

Both companies have initiatives that may not yet reflect fully in their current numbers, indicating possible future growth. The overall outlook remains optimistic despite the existing market volatility, suggesting a good entry point for patient investors.

Stocks: NASDAQ:SBUX NASDAQ:MELI