Should you buy dLocal stock? (March 2024)

Published first at https://www.3minutebreakdowns.com dLocal stock analysis. Ticker: $DLO Fintech company dLocal provides payment services in emerging markets like South America and Africa. The stock dropped yesterday as earnings missed expectations by a wide margin. However, looking at full year results, the company is still experiencing rapid growth. Total payment volume over the last 12 months increased 67% to 18 billion dollars and revenues grew 55% to 650 million. Management thinks payment volume will grow another 40-50%this year. In addition, dLocal is highly profitable. Net income of 149 million equates to a margin of 23% while free cash flow margins are an impressive 45%. That kind of performance explains why Dlocal is a favorite among high risk growth investors. At only 13 times free cash flow, Dlocal stock could easily double if it keeps up this performance. The issue for dLocal is that investors don’t trust the company. Back in 2022, respected short seller Muddy Waters accused the company of being a “fraud” which caused the stock to drop 51% the next day. #stocks #investing #stockstowatch #3mb