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Is MELI a good stock to buy? We came across a bullish thesis on MercadoLibre, Inc. on Rijnberk InvestInsights’s Substack by Daan | InvestInsights. In this article, we will summarize the bulls’ thesis on MELI. MercadoLibre, Inc.'s share was trading at $1,854.18 as of April 21st. MELI’s trailing and forward P/E were 47.46 and 30.96 respectively according to Yahoo Finance.

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MercadoLibre, Inc. operates online commerce platforms in Brazil, Mexico, Argentina, and internationally. MELI stands out as a compelling investment opportunity amid a risk-off market environment driven by AI concerns, global trade uncertainty, and U.S. macro fears, despite having limited exposure to these pressures. The company’s core operations in Latin America are supported by long-term digitalization tailwinds, positioning it as a structurally advantaged platform across both e-commerce and fintech.

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Recent Q4 results reinforced this strength, with revenue rising 45% year-over-year to $8.8 billion, marking its 28th consecutive quarter of 30%+ growth and demonstrating accelerating momentum at scale. E-commerce performance was driven by strong GMV growth, rising user engagement, expanding advertising revenue, and increasing subscription adoption, while fintech delivered even stronger growth, with TPV up 42% and credit emerging as a key earnings driver supported by improving asset quality and proprietary underwriting advantages.

Although margins compressed due to aggressive reinvestment in logistics, marketing, and credit expansion, these investments are strategically aimed at strengthening long-term competitive positioning and driving sustained market share gains. Despite these robust fundamentals, the stock has declined meaningfully, leading to an attractive valuation that does not reflect its growth profile or dominant ecosystem.

With expected revenue growth in the mid-30% range and strong earnings compounding ahead, MercadoLibre offers a clear path to over 30% annualized returns, supported by expanding monetization, a large underpenetrated market, and durable competitive advantages across Latin America’s digital economy.

Previously, we covered a bullish thesis on MercadoLibre, Inc. (MELI) by Daan | InvestInsights in May 2025, which highlighted its leadership in Latin America’s e-commerce and fintech markets, strong user growth, and long-term digital adoption tailwinds. MELI’s stock price has depreciated by approximately 28.26% since our coverage. Daan | InvestInsights shares a similar view but emphasizes on accelerating growth, stronger fintech monetization, and valuation disconnect.

MercadoLibre, Inc. is on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 113 hedge fund portfolios held MELI at the end of the fourth quarter which was 109 in the previous quarter. While we acknowledge the risk and potential of MELI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MELI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None.