Market Crash? My Favorite Growth Stock to Buy Right Now.

Are we at the beginning of a market crash? The honest answer is that it is too early to make that call. However, the S&P 500 has trended downward in the last few trading sessions as I write this, and the cyclically-adjusted price-to-earnings ratio known as the Shiller P/E ratio is at 41, a level last seen near the peak of the dot-com boom. Some investors are starting to worry about a crash.

Moreover, some growth stocks may be in a sort-of crash of their own as they sell for well below all-time highs. This appears to be the case with Latin American e-commerce conglomerate MercadoLibre (NASDAQ: MELI), which is roughly 35% off its high. Nonetheless, instead of running away, investors may want to consider adding shares of the consumer discretionary stock, and here's why.

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Why investors are selling MercadoLibre

MercadoLibre has succeeded by turning Latin America's challenges into successful businesses. The company became a regional fintech leader by first providing financial products to cash-based customers frozen out of the banking system. It also built a logistics business to address a lack of shipping options.

However, some of the company's decisions may have alarmed investors. In the e-commerce business, it has reduced prices to compete, and investors did not react well to the lower margins that resulted. In its fintech enterprise, Mercado Pago, it increased loan volumes at a faster rate than revenue, and again, investors seemed to become leery when it had to cover more loans that customers were not repaying.

The reaction was understandable, as net income growth that was once well into the double digits slowed to just 5% annually in 2025. More recently, year-over-year profits fell by 16% in the first quarter of 2026.

Why MercadoLibre is still a buy

Still, investors need to know that MercadoLibre has a considerable growth runway, as evidenced by its revenue growth. In 2025, revenue increased by 39% year over year, and it increased 49% YOY in Q1 2026.

That shows the potential for massive profit growth if it can address some of its business challenges. The company has accepted lower margins as it solidifies its hold on the marketplace, and that could ultimately serve it well in the long term as more of its peers find themselves unable to compete.

On the fintech side, it has begun to more strictly limit loan amounts to mitigate potential losses. Additionally, it's using AI to rate borrowers and thus make it less likely to loan money to customers unable to repay their loans.

While addressing such issues may cause pain now, it also shows MercadoLibre is playing the long game, which should eventually help move the stock up.

What's next?

Although MercadoLibre stock currently is struggling to find traction, the moves that the company is making could make it a more attractive stock longer term.

Indeed, investors are unlikely to welcome lower e-commerce margins and high loan defaults right now. They will also need to exercise patience as the company finds the right approach to mitigate loan losses with its rapidly growing loan portfolio.

Nonetheless, the company's ultimate goal is to prosper and maintain its market leadership. And I'm confident in it. Assuming short-term pain leads to long-term stock gains, it could pay for investors to buy more MercadoLibre stock as share prices fall.

Will Healy has positions in MercadoLibre. The Motley Fool has positions in and recommends MercadoLibre. The Motley Fool has a disclosure policy.