The U.S. Market Is in Turmoil. Here's 1 Reason MercadoLibre Looks Better Than Ever.
Key Points
The company's fintech arm, Mercado Pago, has more than 78 million users now.
Net revenue growth reached 45% year over year in its fourth-quarter 2025 report.
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As geopolitical turmoil rattles U.S. markets, Latin America's premier e-commerce and fintech company MercadoLibre (NASDAQ: MELI), is looking increasingly attractive to American investors.
One reason it looks better than ever is that it has transformed into the Amazon of South and Central America. MercadoLibre has built itself into a powerful consumer discretionary business. Its recent revenue growth is significant and promising. In its latest quarterly report, net revenue was up 45% year over year.
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The company's geographic reach is a real advantage right now. It's operating in markets that are still developing their online banking infrastructure. And management is doing an incredible job of capturing these new digitally enabled consumers.
Image source: Getty Images.
Mercado Pago, the company's fintech arm, saw huge growth in volume and users over the past year. More than 78 million people in Latin America now use the platform. MercadoLibre's credit portfolio grew 90% year over year as of the fourth quarter of 2025.
The stock has not fared well year to date, down nearly 20% thus far. Yet analysts concur that MercadoLibre is a buy with an average target price of $2,595. It's currently trading well below that mark, at just $1,612 as of market close on March 24.
MercadoLibre also has a reasonable forward price-to-earnings ratio (P/E) of 23 and a price/earnings-to-growth ratio (PEG) below 1, which indicates the stock is slightly undervalued right now.
As U.S. markets continue their volatile ways, there's an exciting opportunity for the company's shareholders. It's a fast-growing business in under-penetrated markets. For investors seeking international growth, MercadoLibre is where I'd look first.
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Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and MercadoLibre. The Motley Fool has a disclosure policy.
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