2 Growth Stocks Down 6% (or More) to Buy Right Now

MercadoLibre (NASDAQ: MELI) and Shopify (NASDAQ: SHOP) are among the best-known e-commerce specialists. Both have produced exceptional returns over the past decade, but recent volatility -- along with some company-specific issues -- have led to less-than-stellar performances this year. MercadoLibre's shares are down by 6% as of this writing, while Shopify's have declined 16%. For context, the S&P 500 is up a solid 3% since January. However, this could be a great opportunity to invest in these stocks on the dip. Here is why MercadoLibre and Shopify are great picks right now.

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1. MercadoLibre

Investors who hold MercadoLibre's shares should prepare for challenging times ahead. Not only is the company facing increasing competition in its core e-commerce market in Latin America, but it is also making investments that might negatively impact its margins and earnings in the short run and may not pay off immediately. Even so, those focused on the long game should stay put, as MercadoLibre's efforts could pay rich dividends down the road. The company is looking to boost its gross merchandise volume by lowering the minimum transaction amount eligible for free shipping, among other initiatives.

Eventually, this could increase MercadoLibre's revenue, expand its ecosystem, and strengthen its network effect. It will also help it scale its already fast-growing advertising segment, and that's particularly important since the digital advertising business boasts higher margins than e-commerce sales. It might take a while for all these benefits to meaningfully show up on the company's reports because of its ongoing investments and efforts, but once they do, the stock could soar.

MercadoLibre is also doubling down on its banking efforts. The company sees this as a particularly attractive opportunity given that many people in the regions it serves are underbanked. Meanwhile, MercadoLibre still has a strong competitive edge. Beyond its brand name and the network effects already mentioned, the company's massive infrastructure, which allows it to operate in multiple regions of Latin America -- including some that are fairly unstable -- is hard to replicate.

And the company's ecosystem also benefits from switching costs for merchants who start online shops through its services. MercadoLibre's near-term outlook remains uncertain, partly due to factors beyond the company's control. That said, MercadoLibre could deliver excellent returns over the next decade as it rides the wave of the rapidly growing growing e-commerce and fintech markets.

2. Shopify

Shopify is performing well. But some investors worry that its shares are overvalued. These fears aren't without basis. The stock is trading at a whopping 71.4x forward earnings. That's a big reason why the stock has declined 16% this year. Things could get even worse. If there is a market downturn on the horizon -- which isn't that far-fetched considering recent developments -- investors will likely run toward reliable dividend payers, not the high-growth, richly valued, and volatile profile that Shopify fits.

Even so, Shopify is a great pick for those with an investment horizon of five years or more. The company has established itself as a leader in its niche, helping merchants build online storefronts. Shopify powers about 30% of e-commerce websites in the U.S. -- that's an impressive statistic. Further, the company's market share has increased over the years.

What makes Shopify such a successful company in its niche? Shopify makes it easy for merchants to get started, while also providing everything they need to run their operations smoothly. The company helps with inventory management, payments, marketing, analytics, selling across major social media platforms, and it has an app store with thousands of options for business owners to customize. Further, Shopify benefits from high switching costs, given that it is hard for merchants on its platform to leave after spending time and money building their ideal online storefronts.

In short, Shopify is well-positioned to capitalize on the growing e-commerce market, especially since it operates in over 175 countries but generates most of its revenue in North America. The massive opportunities ahead could allow it to perform extremely well over the long run.

Prosper Junior Bakiny has positions in MercadoLibre and Shopify. The Motley Fool has positions in and recommends MercadoLibre and Shopify. The Motley Fool has a disclosure policy.