Could This Fintech Stock Help Make You a Millionaire?

MercadoLibre (NASDAQ: MELI) is a major fintech (financial technology) company that you may not be familiar with -- because it's focused on serving Latin America. It's also a major e-commerce presence there.

It's worth getting to know the company, because its stock could help you reach millionaire status. Consider, for example, that its 15-year average annual return has been 21.6%, and its 10-year average 28.7%. Over the past year, the stock has dipped by 36% (as of May 22), making it a more appealing opportunity.

Image source: The Motley Fool.

Meet MercadoLibre

Here are some things to know about MercadoLibre, as of its first quarter of 2026:

• It boasts 126 million unique buyers over the last 12 months.
• It saw 2.7 billion items delivered over the past 12 months.
• It sported 83 million monthly active buyers.

Its business features five different foci: commerce, advertising, logistics, acquiring (payment systems for merchants), and fintech services. Its fintech division, called Mercado Pago, offers a range of services from digital financial accounts to insurance, credit, and more. Together, these businesses form an ecosystem that can keep customers sticking around.

Check out its impressive first-quarter results, released in early May:

• Net revenue up 49% year over year, to $8.8 billion -- "the fastest pace in almost four years," said the company.
• Total payment volume up 50% year over year.
• Gross merchandise volume up 42% year over year.
• Operating margin of 6.9%.
• Net margin of 4.7%.

Management noted:

We have a once-in-a-generation opportunity to transform how hundreds of millions of Latin Americans shop, pay, and access financial services. In commerce, the region is at an early stage of a shift that markets like the U.S. are much further along. The average American makes 41 online purchases per year, whereas the average Latin American makes just seven.

Should you invest in MercadoLibre?

Of course, not everything is perfectly rosy with the company, which is why the stock is down. Some are worried about a big jump in its credit portfolio, which could be troublesome if there are many defaults.

Still, I see MercadoLibre as an attractive opportunity and have been a shareholder for a number of years. Its stock price is looking more attractive now than it has in a while, with its recent forward-looking price-to-earnings (P/E) ratio of 36 well below the five-year average of 58 and its recent price-to-sales ratio of 2.65 well below the five-year average of 5.6.

Could the stock help make you a millionaire? Well, certainly -- just about any growing stock could, given a big enough investment in it and/or sufficient time. But there are no guarantees in investing. However, I'm optimistic about MercadoLibre's future and think that as part of a diversified portfolio, it seems likely to help your wealth grow over the long run.

Selena Maranjian has positions in MercadoLibre. The Motley Fool has positions in and recommends MercadoLibre. The Motley Fool has a disclosure policy.