MercadoLibre’s 6,950% Stock Surge Outpaces Amazon’s Growth in Latin America
MercadoLibre, often called the 'Amazon of South America,' has seen its stock surge by 6,950% since its 2007 IPO. Investors who bought shares at the start have earned over 100 times their original investment. The company remains a dominant force in Latin American e-commerce, fintech, and logistics.
The firm’s revenue jumped 39% in the third quarter of 2023, marking its 27th straight quarter with growth above 30%. Despite this strong performance, its operating margin dipped to 9.8% due to heavy spending on lower shipping costs and business expansion. Analysts, however, predict margins will widen by 2026 as services like its Brazilian credit card mature.
MercadoLibre’s MELI+ membership programme mirrors Amazon Prime, offering perks to boost customer loyalty. The company’s stock, now trading at $1,998 per share, recently saw a pullback, bringing its price-to-earnings ratio down to 49. This makes it more accessible for investors with a $2,000 budget. E-commerce in Latin America still sits in the mid-teens for penetration, leaving plenty of room for growth. Analyst Caio Reimertshofer of Aktienwelt360 rates MercadoLibre as a top buy for 2026, citing its dominance in e-commerce, logistics, and digital payments across the region.
MercadoLibre’s long-term growth potential remains strong, backed by steady revenue increases and an expanding market. With a more affordable valuation after the recent dip, the company continues to attract investors. Wall Street expects further margin improvements as its financial products gain traction in the coming years.
