MercadoLibre and Dutch Bros are 37% and 49% below their record highs, respectively, even as the S&P 500 hits new peaks. MercadoLibre posted 50% revenue growth in Q2, but profitability has declined for two straight quarters as management invests to grow. Dutch Bros had 1,225 stores at the end of Q2 and aims to reach 2,029 by 2029, with Q2 revenue up 32% and same-store sales up 5.8%. Its shares fell after the market reacted poorly to its August guidance, rising coffee bean costs, and the end of its bid for a restaurant chain that would have added 65 stores. The author views both as worth buying on the dip.
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