Predicting a Lifelong Fortune: Why Investing in MercadoLibre Stock Now Could Be Game-Changing

The S&P 500 Is showing a gradual recovery after its recent decline due to tariffs, but it has still decreased by 6% compared to the start of the year.

Although investors use the index As an indicator of the broader market’s health, remember that the S&P 500 functions as a weighted-average index where its biggest constituents significantly influence its trajectory. This implies that major American corporations lead much of the movement within this benchmark. Apple , Microsoft , and Nvidia will disproportionately affect the entire outcome.

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Companies that might suffer from the new tariff plan have experienced declines in their share prices. MercadoLibre (NASDAQ: MELI) , which isn’t based in the U.S., has become increasingly appealing and has seen a rise of 30% this year. Here’s why it might secure your financial future.

Incredible performance

The primary focus of MercadoLibre is e-commerce, and it additionally boasts a substantial and expanding fintech division. Operating in 18 Latin American nations, it showcases consistent robust growth across various indicators.

The final quarter of 2024 serves as a key frame within this thrilling narrative. Here are some notable points using constant-currency figures: Revenues surged by 96% compared to the previous year, the gross merchandise volume rose by 56%, and the total payment volume climbed by 49%.

Despite being around for several decades, the e-commerce sector continues to expand rapidly. In the final quarter, sales surged by 27% compared to the previous year, with distinct purchasers increasing by 24%. This resulted in an unprecedented number of over 100 million individual buyers. The company’s management is implementing various strategies to woo new clients and maintain the loyalty of current ones, such as establishing additional distribution hubs and offering complimentary delivery on a wider range of products. Orders requiring same-day or next-day shipment rose by 21% annually and constituted 49% of all orders placed during this period.

The number of monthly active users in the fintech sector rose 34% compared to the previous year, exceeding 60 million. Within the credit industry, assets under management The figure rose by 129%, with the entire credit portfolio increasing by 74%. MercadoLibre continues to invest heavily in its credit card operations as part of its strategy to become the leading digital banking institution across Latin America. Notably, during this period, the credit card segment experienced the most rapid growth within the broader credit portfolio.

Incredible potential

What investors want to see is how much more opportunity there is for MercadoLibre to keep doing its thing. The reason its stock can set you up for life is that the remaining opportunity is vast. The company has the first-mover's edge, as well as the assets, resources, and experience to capture market share as more people come on board to e-commerce and fintech services.

The management mentions they are driving "the transition from brick-and-mortar stores to an online presence," which is occurring gradually yet consistently. Online shopping has not progressed as far in Latin America compared to other areas, trailing behind by roughly ten years; it accounted for just 14.4% of overall retail sales in 2024 and is projected to increase to 17.7% by 2028. By comparison, the United States saw e-commerce make up 28.8% of all retail transactions last year, whereas this figure stood at 38.1% in China during the same period.

A significant amount of digital upheaval continues across Latin American nations, with the financial sector particularly poised for transformation. In Mexico, merely fifty percent of adults possess a banking account, and fewer than twenty percent own a credit card. Meanwhile, in Brazil, the majority of people’s finances remain under the control of just four major established banks.

MercadoLibre should be able to keep up growth rates as it brings people online and delivers a positive and improved experience.

The tariff piece

Being a non-U.S. entity, MercadoLibre isn’t impacted quite as directly by President Donald Trump’s new tariff policies, which appears favorable to current investors. Actually, the firm just inaugurated its inaugural U.S. fulfillment hub in Texas with the aim of catering to Mexican customers, thus facilitating an inverse flow of merchandise.

This does not imply complete immunity; it might still feel repercussions if present events escalate into a worldwide trade conflict. However, it remains protected from ongoing American tariff problems and serves as a good safeguard for investors accustomed to purchasing U.S. equities, now and over an extended period.

You cannot timing the stock market correctly.

One aspect of Mercadolibre stock is not It is inexpensive. Nevertheless, despite gaining 58% over the last year, it remains so. forward P/E ratio is 34, which is not excessively high and falls below its five-year average.

Could the pace of the company’s expansion start to decelerate? It potentially could, since maintaining rapid growth becomes increasingly challenging as the foundation grows larger. However, considering the substantial untapped potential within its market and plans for introducing fresh services along with entirely new ventures, MercadoLibre ought to sustain impressive growth trajectories for quite some time ahead (stretching well into the future). This trajectory would continue delivering returns for those committed to holding onto their shares over the long haul.

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Jennifer Saibil has positions in Apple and MercadoLibre. The Motley Fool has positions in and recommends Apple, MercadoLibre, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy .

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