MercadoLibre (NASDAQ: MELI)
Latin America’s E-Commerce Leader Still Has Room to Run
MercadoLibre continues to stand out as one of the strongest long-term growth stories in global e-commerce, especially as investors look for exposure outside the increasingly crowded U.S. and China markets. What makes this company compelling right now is not just growth, but the quality and durability of that growth.
Founded in 1999 and now operating across 19 countries, MercadoLibre has built a deeply localized e-commerce and fintech ecosystem that is hard to replicate. Its marketplace is tightly integrated with its payments platform, Mercado Pago, which has expanded into a full fintech offering including digital wallets, credit products, crypto tools, and banking services. This combination creates a powerful moat and keeps users inside its ecosystem.
The growth numbers back this up. From 2018 to 2024, revenue grew at a 56% compound annual rate. The business turned consistently profitable in 2021, and net income has since compounded at an even faster pace. By the end of 2024, MercadoLibre served more than 100 million annual active buyers and 60 million monthly fintech users. That sounds large until you consider the addressable market of roughly 668 million people across Latin America and the Caribbean.
While its largest markets like Brazil, Argentina, and Mexico are more mature, the company is still expanding in faster-growing regions such as Chile, Colombia, Peru, and Ecuador. Industry data suggests Latin America’s e-commerce market could grow at a mid-teens annual rate through the end of the decade, providing a strong backdrop for continued expansion.
Importantly, growth is becoming more profitable. The company is scaling higher-margin businesses like advertising and credit, while improving efficiency across logistics and payment processing. Analysts expect revenue to grow at a high-20% annual rate from 2024 to 2027, with net income growth accelerating even faster as margins improve.
Shares currently trade around $1,930. That valuation is not cheap on the surface, but at roughly 34 times next year’s earnings, it reflects a business with strong competitive positioning, improving profitability, and a long runway in underpenetrated markets. For investors willing to pay up for quality growth, MercadoLibre still looks well positioned heading into 2026 and beyond.
