If you’re on the hunt for a growth stock trading at a discount, look no further than MercadoLibre (NASDAQ: MELI). The Latin American e-commerce and fintech giant is due to report earnings in early August.
Shares of MercadoLibre are down more than 10% in 2026 and 23% in the past 12 months due to some short-term margin pressure and headwinds, but the company’s long-term growth plans in emerging markets are nothing short of exciting.
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In the first quarter of 2026, the company’s net revenue increased 49%, with its Brazil market leading the surge. The fintech arm of the company, Mercado Pago, saw its assets under management grow 77%. Still, Wall Street overreacted to slimming margins. However, the margin decrease was due to strategic investments in shipping logistics, credit expansion, and international commerce.
These investments will pay off over time for patient investors. The bets MercadoLibre is making now will ensure the company remains the leading source of credit and e-commerce across Central and South America for years to come.
There are challenges ahead, including regulatory issues and currency volatility in places like Argentina and Mexico. This may lead to some short-term headaches as MercadoLibre navigates underpenetrated consumer markets.
I believe MercadoLibre will become the Amazon of Latin America. It’ll take some time to build the logistics and infrastructure necessary to do that, but the company is well on its way.
Should you buy stock in MercadoLibre right now?
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