We're getting toward the end of earnings season, but there are still a few big names that are yet to report. In particular, we're watching MercadoLibre (NASDAQ:MELI) when it reports its fourth-quarter earnings on Tuesday and Square (NYSE:SQ), which is set to release its results on Wednesday.
In this clip, Industry Focus: Financials host Jason Moser and Fool.com contributor Matt Frankel, CFP, discuss what investors should pay attention to when these two companies report.
A full transcript follows the video.
This video was recorded on Feb. 25, 2019.
Jason Moser: OK, Matt, it's that time of week. We've got One to Watch. Looking at the stocks on our radar here this coming week, what is your One to Watch?
Matt Frankel: I have to go with Square. I'm sure a lot of people won't be surprised. They report earnings on Wednesday. I have a few questions in my mind. Of course, I'd love to see them give an update on how their Cash app is doing. They historically haven't released too many concrete details about how many people are using it. But if they do, it's usually at their fourth quarter, year-end results. So I'm looking to see about that. I want to see if their growth is continuing to accelerate and top-line revenue. I want to see that their business lending platform is doing well, especially the Square Installments, which was recently rolled out. We barely got any data on that in the third quarter because it had just started. I'm curious to see how that did. I want to see that their payment volume is picking up and that their business is doing well all around. Their growth has been extremely exciting for the past few quarters. I hope to see that continue, and I don't have any reason to think it won't.
Moser: Yep, me too. I hope to see good things from them. I'm going to be keeping an eye on MercadoLibre, ticker MELI. Their earnings come out tomorrow, Tuesday the 26th. We know this is the e-commerce giant of Latin America, but they also have integrated their payments solution, Mercado Pago. I'll tell you what, it's an interesting point management noted last quarter that in September, for the first time ever, Mercado Pago not only processed more total payment transactions off-platform than on MercadoLibre's platform, but also, the total payment transactions surpassed the 100 million mark in a single quarter.
We had talked about this a couple of shows back, different companies that could be "war on cash" considerations. I remember saying MercadoLibre was certainly one of them because of that right there, Mercado Pago, which they've integrated into their ecosystem. So MercadoLibre will be on my radar. I'll be paying attention to their earnings out tomorrow.