According to @StockMarketNerd, MercadoLibre includes credit funding within free cash flow which is a current drag while the company is in growth mode, creating misleading FCF multiples for traders who rely on third-party screens, source: @StockMarketNerd on X, Nov 21, 2025. The post states many services show Q1 to Q2 FCF around 3.3 billion dollars, while the company reported about 440 million dollars, which can distort valuation if FCF is used, source: @StockMarketNerd on X, Nov 21, 2025. The author argues EBIT is the cleaner metric once credit funding and foreign exchange noise are removed, and adds that MELI trades at an all-time low forward EBIT multiple of 25 times, source: @StockMarketNerd on X, Nov 21, 2025. For trading and valuation screens, the takeaway is to anchor on EBIT rather than FCF and to adjust for FX effects cited in the post, source: @StockMarketNerd on X, Nov 21, 2025. The post does not reference any cryptocurrency exposure or market impact, source: @StockMarketNerd on X, Nov 21, 2025.

According to @StockMarketNerd, when the AI CapEx supercycle slows, the preferred positioning is to own mega-cap platforms with multiple secular growth drivers and demonstrated ability to use compute for efficiency gains or impactful app updates (source: @StockMarketNerd). According to @StockMarketNerd, the strategy avoids pure-play AI infrastructure names with parabolic stock moves, highly uncertain forward estimates, and financials that are fully tied to cyclical CapEx growth (source: @StockMarketNerd). According to @StockMarketNerd, this allocation seeks lower downside and the potential for a free-cash-flow boom if compute demand cools, while accepting less upside if the cycle accelerates (source: @StockMarketNerd). According to @StockMarketNerd, portfolio preference is for businesses with more diverse and flexible uses of compute rather than single-cycle exposure, enhancing risk management into an AI CapEx slowdown (source: @StockMarketNerd). According to @StockMarketNerd, the commentary is equity-focused and does not reference cryptocurrencies or tokens, so the source provides no direct crypto-market signal (source: @StockMarketNerd).

According to @QCompounding, net income includes non-cash items while free cash flow reflects only actual cash movements, highlighting why traders should separate accounting profit from cash generation, source: @QCompounding. For trading decisions, FCF is the cleaner gauge of liquidity and capacity to fund operations, capex, and buybacks compared with net income, which can be distorted by non-cash charges, source: CFA Institute; @QCompounding. In crypto-linked equities such as exchanges and miners that face revenue volatility, monitoring FCF trends can better indicate resilience and runway than headline earnings, source: CFA Institute; @QCompounding.