MercadoLibre Is Building the Infrastructure Latin America's Economy Will Run on for Decades. Here's Why That Makes It a Forever Hold.
Key Points
MercadoLibre’s stock has soared over the past two decades.
Its massive e-commerce, fintech, and logistics infrastructure will drive its dominance of the Latin American market for the foreseeable future.
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MercadoLibre (NASDAQ: MELI), the largest e-commerce company in Latin America, went public 19 years ago. A $10,000 investment in its IPO would be worth over $1 million today.
From 2007 to 2025, its revenue surged from $85 million to $28.9 billion. That growth was driven by its expansion from a consumer-to-consumer marketplace into an integrated regional e-commerce, fulfillment, and fintech ecosystem across Latin America. Let's see how MercadoLibre built that infrastructure, and why it makes it a great stock to buy and hold forever.
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How did MercadoLibre expand and evolve?
MercadoLibre was founded in 1999 and initially expanded in Brazil, Mexico, Uruguay, and Venezuela. In 2001, eBay (NASDAQ: EBAY) invested in the fledgling company and helped it scale its marketplace with technological upgrades. In 2003, it launched Mercado Pago, a digital wallet for facilitating transactions on its marketplace.
In 2006, MercadoLibre expanded into Central America. In 2007, it became the first Latin American tech company to complete an IPO on NASDAQ. A year later, it acquired its rival DeRemate to consolidate its leading position in Latin America.
In 2012, it launched MercadoShops, which enabled smaller businesses to build customized, stand-alone e-commerce storefronts. In 2013, it launched Mercado Envíos, its logistics platform that standardized shipping rates and delivery times.
In 2016 and 2017, it expanded Mercado Pago to off-platform retailers through QR code point-of-sale (POS) systems and mobile wallets for brick-and-mortar transactions. It also launched Mercado Crédito, which leveraged its marketplace transaction data to approve loans for sellers and credit lines for buyers. That expansion transformed its digital payments platform into a diversified fintech business.
In 2019, it opened its first fully owned fulfillment centers across Brazil, Mexico, and Argentina to support its logistics network. That expansion made it difficult for overseas challengers such as Amazon (NASDAQ: AMZN) to enter the market.
Over the following six years, MercadoLibre launched its own dedicated cargo fleet (Meli Air) and secured regional banking licenses, enabling Mercado Pago to offer its own savings accounts, credit cards, and investment services. That expansion -- which it's reinforcing with multi-billion dollar capital investments in Brazil, Mexico, and Argentina -- will further widen its moat and solidify its dominance of the e-commerce and fintech markets.
Why will that infrastructure support its future growth?
MercadoLibre ended its latest quarter with 89.3 million unique active buyers. That represented 26% growth from a year earlier, but it hasn't saturated the market yet.
According to Market Data Forecast, the Latin American e-commerce market could grow at a 10.85% CAGR from 2026 to 2034 as more people use smartphones and digital payments. That's why MercadoLibre -- which is well-poised to profit from that boom -- is still one of the few stocks in my portfolio that I'd consider a "forever" investment.
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Leo Sun has positions in Amazon and MercadoLibre. The Motley Fool has positions in and recommends Amazon, MercadoLibre, and eBay. The Motley Fool has a disclosure policy.
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