Nvidia shares have surged 760% because the starting of 2023, and Broadcom shares have surged 205% throughout the identical interval. Nvidia has already reset its share value by finishing a 10-for-1 inventory cut up on June 7, and Broadcom has a 10-for-1 inventory cut up deliberate for July 12.Importantly, Nvidia was the fourth-most costly inventory within the Nasdaq-100 previous to its cut up, and Broadcom is at the moment the third-most costly inventory within the index. That is not stunning. The first objective of a ahead inventory cut up is to cut back the share value, thereby making the inventory extra accessible and extra liquid.With that in thoughts, the Nasdaq-100 inventory most certainly to separate subsequent is the one with the very best value, which is Reserving Holdings. Nonetheless, as my colleague Jon Quast eloquently describes, CEO Glen Fogel opposes the concept of a inventory cut up. So, we are able to strike Reserving Holdings from the checklist and transfer on to the subsequent costliest inventory, MercadoLibre (NASDAQ: MELI).Traders ought to by no means purchase a inventory simply because they anticipate it to separate, however MercadoLibre is a worthwhile long-term funding whether or not it splits or not. Learn on to see why.MercadoLibre is the market chief in e-commerce and retail promoting in Latin AmericaMercadoLibre operates the biggest on-line commerce and funds ecosystem in Latin America, a area the place e-commerce penetration is about half that of the USA. Its market receives practically 4 instances as many month-to-month guests as the subsequent competitor. MercadoLibre is predicted to account for 29% of home on-line retail gross sales this 12 months, up 70 foundation factors (0.7 share factors) from the prior 12 months.MercadoLibre has strengthened its success with adjoining monetary companies, logistics assist, and promoting instruments, which make its market extra handy for retailers. The corporate has been profitable on all counts. MercadoLibre is without doubt one of the largest fintech firms in Latin America, it operates the quickest and most intensive home supply community, and it accounts for greater than 50% of retail media advert spending within the area.MercadoLibre reported robust monetary leads to the primary quarter, handily beating expectations on the highest and backside traces. Income elevated 36% to $4.3 billion, reflecting gross sales progress within the commerce and fintech segments of 49% and 22%, respectively. In the meantime, GAAP (usually accepted accounting rules) internet revenue elevated 71% to $6.78 per diluted share.In the course of the first quarter, commerce gross sales benefited from elevated adoption of success and promoting companies, indicating that MercadoLibre is extra successfully monetizing retailers on its market. Moreover, fintech gross sales benefited from accelerating progress in whole fee quantity and elevated engagement with credit score merchandise.Story continuesThe chart beneath reveals MercadoLibre’s income progress throughout each segments during the last 5 quarters.MercadoLibre’s commerce income progress has accelerated in 4 consecutive quarters.Given its robust presence in a number of markets, traders have good purpose to consider MercadoLibre can preserve that momentum. The corporate is steadily gaining share in e-commerce, which bodes properly for its fintech and promoting companies. The truth is, MercadoLibre is forecasted to be the fastest-growing advert tech firm on the planet in 2024.Extra broadly, the digital financial system in Latin America is predicted to broaden at 23% yearly over the subsequent three years.MercadoLibre inventory trades at an inexpensive value in comparison with Wall Road’s earnings forecastWall Road expects MercadoLibre to develop earnings per share at 51% yearly by means of 2026. In that context, the present valuation of 74.2 instances earnings seems affordable, particularly when the two-year common is 109.7 instances earnings.Traders needs to be cognizant of the dangers. Most notably, Argentina (MercadoLibre’s third-largest geography behind Brazil and Mexico) is affected by hyperinflation, such that home gross sales declined 22% within the first quarter, as measured in U.S. {dollars}, regardless of surging 239%, as measured in Argentine pesos. That can possible be a headwind for the foreseeable future.MercadoLibre has traditionally been a really unstable inventory. It carries a three-year beta of 1.59, which means it moved 159 foundation factors for each 100-basis-point motion within the S&P 500 over the past three years. Volatility cuts each methods. When MercadoLibre shares are rising, they will rise rapidly. However when the inventory is falling, it will possibly fall sharply.Traders comfy with that kind of threat and volatility ought to think about shopping for a small place on this potential Nasdaq-100 stock-split inventory at present.Don’t miss this second likelihood at a probably profitable opportunityEver really feel such as you missed the boat in shopping for essentially the most profitable shares? You then’ll wish to hear this.On uncommon events, our skilled crew of analysts points a “Double Down” inventory advice for firms that they suppose are about to pop. Should you’re apprehensive you’ve already missed your likelihood to speculate, now’s one of the best time to purchase earlier than it’s too late. And the numbers converse for themselves:Amazon: when you invested $1,000 once we doubled down in 2010, you’d have $22,525!*Apple: when you invested $1,000 once we doubled down in 2008, you’d have $42,768!*Netflix: when you invested $1,000 once we doubled down in 2004, you’d have $372,462!*Proper now, we’re issuing “Double Down” alerts for 3 unbelievable firms, and there will not be one other likelihood like this anytime quickly.See 3 “Double Down” shares »*Inventory Advisor returns as of July 2, 2024Trevor Jennewine has positions in MercadoLibre and Nvidia. The Motley Idiot has positions in and recommends Reserving Holdings, MercadoLibre, and Nvidia. The Motley Idiot recommends Broadcom. The Motley Idiot has a disclosure coverage.Nvidia and Broadcom Introduced 10-for-1 Inventory Splits. This Nasdaq-100 Inventory Is Most More likely to Break up Subsequent. was initially revealed by The Motley Idiot