Amazon is so big you might think it dominates everywhere. That's not the case, though. In Latin America, there's another 800-pound gorilla: MercadoLibre (MELI 1.18%).

Over the last 10 years, MercadoLibre stock has been a 20-bagger, nearly doubling Amazon's return. Is it too late to jump aboard this Latin American leader's bandwagon? Not at all. Here are three reasons to buy MercadoLibre stock like there's no tomorrow.

1. Tremendous growth potential

Arguably the most important reason to buy MercadoLibre stock like there's no tomorrow is that there is a tomorrow. The company has tremendous long-term growth potential.

That potential is already being realized. MercadoLibre's net revenue jumped 36% year over year in the first quarter of 2024 to $4.3 billion. Earnings soared 71% to $344 million. Total payment volume rose 35% year over year (86% on a constant-currency basis) to $40.7 billion. Any way you look at it, MercadoLibre is delivering strong growth.

More growth should be on the way. As MercadoLibre investor relations officer Richer Cathcart said in the company's Q1 earnings call, "In Latin America, e-commerce is far from mature, and financial services are right for disruption." He's right. The number of e-commerce users in Latin America is projected to increase 57% by 2029, according to Statista. And the region's fintech market could expand by a compound annual growth rate of 26% through the end of the decade.

MercadoLibre also has opportunities to leverage its platform to move into new areas to drive even more growth. Advertising is a great example of this. The company's ad revenue soared 64% year over year in Q1 with improvement in all of its major markets.

2. Strong moats

This growth potential wouldn't be impressive if MercadoLibre couldn't hold onto its market-leading position. But it can. The company has multiple strong moats.

MercadoLibre is now in its 25th year of business. It's built a strong brand that is well-known throughout Latin America. This helps the company continue to attract users to its e-commerce and fintech platforms and gives it an advantage in expanding into adjacent markets.

Few players in the Latin American e-commerce and fintech markets can come anywhere close to matching MercadoLibre's scale. Its size enables the company to operate with a low-cost structure -- another key competitive advantage.

MercadoLibre's biggest moat, though, is the network effect of its platforms. The more customers who shop on its e-commerce platform, the more merchants the company attracts and the more valuable its platform becomes. It's a similar story with MercadoLibre's fintech offerings.

This ecosystem is also "sticky" -- the more customers use MercadoLibre, the less likely they are to switch to a rival. MercadoLibre is trying to make its platform even stickier with its MELI+ customer loyalty program.

3. International exposure

U.S. investors, on average, put close to three-fourths of their portfolio in U.S. stocks, according to Charles Schwab. However, U.S. stocks make up only 58% of global market capitalization. To increase their diversification, many investors need to own more international stocks. MercadoLibre provides a great alternative.

Latin America has faced key challenges in recent years. Consulting firm McKinsey, though, said in a 2023 report about the region that shifting globalization along with Latin America's young population could lead to stronger future growth. If so, MercadoLibre would likely be one of the big winners.