It has been an fascinating begin to 2025 to say the least — much more fascinating than the two% decline within the S&P 500 may recommend. The market has been risky, and there have been many clear winners and losers of the primary quarter.
To be clear, I actually have some shares in my portfolio that have not carried out too nicely this yr. However there are some in my portfolio which can be larger by 20% or way more by way of simply the primary three months of the yr. With that in thoughts, here is a rundown of my three best-performing shares of the primary quarter of 2025, why each has achieved so nicely, and which one I am shopping for extra shares of regardless of the upper price ticket.
My best-performing inventory of 2025 thus far is Redfin (NASDAQ: RDFN), the real estate know-how platform and brokerage. However I have to put an enormous asterisk on this one.
In a nutshell, Redfin has carried out so nicely as a result of the enterprise is being acquired by main mortgage firm Rocket Firms (NYSE: RKT). It’s an all-stock acquisition, so Redfin’s share worth can, and doubtless will, transfer fairly a bit between now and when the deal closes.
Rocket goals to take Redfin and use it to assist fulfil its imaginative and prescient of an all-in-one actual property platform, providing every thing wanted to finish the homebuying or promoting processes. Rocket is combining its huge mortgage enterprise, which originated greater than $100 billion mortgage quantity in 2024, which was a very sluggish yr for actual property, with Redfin’s platform that has about 50 million month-to-month guests. There are some huge alternatives for synergies right here, and it is going to be fascinating to see how the built-in enterprise performs.
MercadoLibre (NASDAQ: MELI) is a prime 5 place in my inventory portfolio, and I am unable to say sufficient good issues about its enterprise, its management, and its future potential.
The inventory is up by 27% thus far in 2025 as of this writing, and the transfer can principally be attributed to MercadoLibre’s stellar fourth-quarter earnings report. Not solely did MercadoLibre beat expectations on the highest and backside traces, however many of the progress numbers from inside the enterprise additionally regarded nice. The e-commerce market bought 27% extra gadgets, Mercado Pago noticed 33% larger cost quantity, and the younger however promising credit score portfolio grew 74% yr over yr.
Simply as importantly, the profitability fears traders had after the corporate’s third-quarter earnings report have been calmed. After plunging margins within the third quarter, the fourth quarter confirmed a pleasant rebound in working and web margins, and credit score losses regarded extra consistent with what traders had been hoping for. With an enormous progress alternative nonetheless remaining in its core companies and a number of other key income streams nonetheless of their infancy, MercadoLibre might have way more room to the upside.
Sea Restricted (NYSE: SE) soared by 160% in 2024, however it’s performing nicely once more in 2025, with a 23% acquire by way of March 24.
The brief rationalization is that every one three areas of its enterprise are performing significantly better than anticipated and are rising quickly. The e-commerce enterprise grew its income by 41% yr over yr within the fourth quarter, the Sea Cash digital monetary companies enterprise’ excellent mortgage principal elevated by 64%, and even the Garena digital leisure platform, which had been struggling within the post-COVID period, posted 19% year-over-year progress in bookings.
Total, Sea’s income soared by 39%, however the huge story is profitability. Sea generated $238 million of web earnings within the fourth quarter, in comparison with a $112 million loss a yr in the past. The corporate now has $10.4 billion in money and equivalents, giving it large monetary flexibility to put money into new progress alternatives as they come up.
All three of those shares are up for good causes. With regards to Redfin, nevertheless, I am in wait-and-see mode in the interim, however I do not plan on promoting simply but. Nonetheless, I am going to need to resolve earlier than the merger closes if I need to be a Rocket shareholder.
Sea Restricted is a powerful turnaround story and was my general finest performing inventory in 2024. I have not added any extra to my place, however it’s positively on my watch listing, as there’s loads of potential forward.
That leaves MercadoLibre. Even the inventory has hit a contemporary all-time excessive, I’ve added to my place already this yr, and I plan to proceed doing so, particularly if there’s any short-term weak point within the inventory on account of market turbulence. Administration is executing on their progress technique very nicely, and the enterprise has implausible momentum. MercadoLibre is already my largest funding of those three by a major margin, however I nonetheless suppose it is engaging sufficient so as to add much more to my place proper now.
Ever really feel such as you missed the boat in shopping for essentially the most profitable shares? You then’ll need to hear this.
On uncommon events, our skilled staff of analysts points a “Double Down” stock suggestion for firms that they suppose are about to pop. If you happen to’re anxious you’ve already missed your probability to speculate, now’s the very best time to purchase earlier than it’s too late. And the numbers communicate for themselves:
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Nvidia: for those who invested $1,000 once we doubled down in 2009, you’d have $314,847!*
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Apple: for those who invested $1,000 once we doubled down in 2008, you’d have $41,848!*
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Netflix: for those who invested $1,000 once we doubled down in 2004, you’d have $524,186!*
Proper now, we’re issuing “Double Down” alerts for 3 unbelievable firms, and there will not be one other probability like this anytime quickly.
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*Inventory Advisor returns as of March 24, 2025
Matt Frankel has positions in MercadoLibre, Redfin, and Sea Restricted. The Motley Idiot has positions in and recommends MercadoLibre and Sea Restricted. The Motley Idiot recommends Redfin and recommends the next choices: brief Could 2025 $10 calls on Redfin. The Motley Idiot has a disclosure policy.
These 3 Stocks I Own Are Crushing the Market in 2025: Here’s Which One I’m Buying More Of was initially revealed by The Motley Idiot
