Fred Trajano

Fred Trajano asserts that despite the stock's decline caused by high interest rates and market cyclicality, he maintains strong long-term conviction in Magalu. He points to the company's digital transformation, diversification into financial services and marketplace, and the new AI-driven conversational commerce channel (WhatsApp da Lu) which is already generating significant sales with high conversion rates. He believes that focusing on fundamentals and innovation will eventually be reflected in the stock price.

Fred argues China is so efficient it does not need tariff advantages, yet in Brazil Chinese cross-border e-commerce sellers and electric vehicle kits are taxed less than imports by Brazilian retailers or kits of regular engines. This 'injusta' competition, combined with brutal domestic competition in China, makes Chinese EVs such as BYD and GWM exceptionally competitive; he notes these previously unknown brands are already leading in Brazil.

Fred says the shift in perception of Chinese products mirrors what happened with Korean brands like Samsung and LG. Today Chinese engineering has reached Korean and sometimes above-Japanese quality: TCL 115-inch TVs match top Korean image quality, Huawei's triple-screen foldable is impressive, and Chinese brands bring accessible prices because of brutal domestic competition / involução. Brazilian consumers are open to switching, and Chinese brands are also succeeding in cars, electronics, sneakers and cosmetics.