narvikk
Investment Thesis
Supported by secular tailwinds, DLocal (DLO) is well positioned to benefit from temporary revenue and margin hits in FY ‘24. After a recent positive management shakeup and having already beat EPS and revenue
DLocal: A Great Opportunity For LatAm And EM Exposure
Summary
- DLocal solves cross-border payment challenges in emerging markets via a single API, simplifying access for global businesses.
- Its moat lies in enabling seamless transactions across fragmented financial systems in Latin America, Africa, and Asia.
- Revenue is heavily concentrated in Latin America, but secular growth trends in emerging markets provide strong long-term catalysts.
- Risks include economic downturns in EM, concentration of revenue and regulatory risks associated with LatAm & EM.
I’m an incoming Master’s in Finance student at a top-tier UK university, consistently ranked among the top three in the country. Over the past eight years, I’ve managed both personal and virtual investment portfolios, with a focus on targeting global equities. What drives me is spotting what I see as market inefficiencies and writing about them. I believe mid-caps offer a sweet spot: they fit my risk profile, aren’t too niche, but also aren’t so heavily covered that every ounce of opportunity is already priced in. I’m comfortable taking risks, protecting the principal always comes first. Once that’s covered, I believe in going after ideas that offer higher rewards for higher risk. While I have a natural interest in tech stocks, I’m not tied to any specific sector. I like pushing myself to analyze companies outside my comfort zone. As long as I understand the business and believe it’s mispriced, I’m happy to dive in. My instinct often leans contrarian, but I also recognize the value of catching the right trend early and riding the wave. I’ve been reading Seeking Alpha for a few years and absolutely love both the platform and the community. Since I already do stock analysis for myself, I figured why not share it here too? I’m excited to contribute, hopefully offer some useful ideas, and keep learning from others along the way. If you’ve got a moderate risk tolerance and a soft spot for growth-oriented mid-cap stocks, I think you’ll enjoy my analysis.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of DLO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.