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Key Points

• MercadoLibre consistently reports high-double-digit growth.

• It has tremendous opportunity in several businesses as it services a population that's both underbanked and underpenetrated in e-commerce.

• It's even more attractive right now because it's not a U.S. business and isn't subject to the new tariff program.

MercadoLibre (NASDAQ: MELI) stock jumped 20% in April, according to data provided by S&P Global Market Intelligence. The Latin American e-commerce giant is already a top growth stock, and it's looking even finer since the tariff program roiled the markets because it operates outside of the U.S.

Tops in two growth industries

MercadoLibre is an e-commerce giant in 18 Latin American countries. It has been growing at high double-digits since slowing down from triple-digit growth early in the pandemic, but its regions are still underpenetrated in e-commerce, and it has a vast runway. It's also using its website as an advertising and media platform, where it sees tremendous potential as full business on its own.

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That's just one side of what's happening at MercadoLibre, since it also operates a robust fintech segment. This started as a way for underbanked customers to be able to buy on the MercadoLibre marketplace, and it has expanded into a full financial services platform with credit cards, other financial products, and investing tools, in addition to digital payments.

The 2024 fourth quarter was a snapshot of an incredible growth story. Revenue increased 96% year over year (currency neutral), with a 56% increase in gross merchandise volume and a 49% increase in total payment volume. Assets under management were up 129%, and the total credit portfolio increased 74%. Operating income increased from $335 million to $820 million year over year, and comparable operating margin expanded from 13.5% to 14.1%.

There's much more coming

Management has provided investors with a five-pronged long-term outlook that includes growing the e-commerce business by shifting retail in its region online, boosting its media and advertising business, increasing access to financial services through its fintech app, capturing new business for its retail merchant business, and generating greater shareholder value.

Management consistently improves the e-commerce business with better logistics processes and improved delivery times. It opened new fulfillment centers last year to improve its same-day delivery capabilities, and that resulted in record-high new buyers. On the fintech side of things, it issued 5.9 million new credit cards last year, more than doubling its portfolio.