I believe that MercadoLibre (MELI +0.01%) could triple in value. Rather than being overly aggressive with my projection, I'll say that this could happen within the next 10 years. In my view, this makes this e-commerce, financial technology, and logistics giant one of the best stocks to buy in 2026.
MercadoLibre is an expert at growing its business. For 27 consecutive quarters (nearly seven years), the company has grown its revenue by at least 30% year over year. This means that over the last seven years, its revenue is up by more than 1,500% -- a stunning growth stock.
Image source: Getty Images.
MercadoLibre deserves credit, but not all the credit. The company operates in Latin America, where the trends are overwhelmingly in its favor. The region is ready for a business like Amazon, and building the "Amazon of Latin America" was a smart move. Regional tailwinds continue to favor this business.
However, MercadoLibre does still deserve a lot of credit for taking on some big challenges head-on and succeeding. And its leadership position can deliver strong gains for shareholders from here.
NASDAQ: MELI
Key Data Points
How much can MercadoLibre grow?
MercadoLibre has generated trailing-12-month revenue of $26 billion. That's a lot, but it still leaves room for significant growth, considering how much is going right.
First, MercadoLibre's core e-commerce business is thriving. The company ended the third quarter of 2025 with nearly 77 million active buyers, representing a 26% increase. Management says that about 4 million of these buyers were new to the platform. Items sold in Q3 were up an even stronger 39%.
MercadoLibre's e-commerce success is leading to a growing opportunity in advertising. This revenue source is accelerating, growing 41%, 50%, 59%, and 63% over the last four quarters, respectively. This helps boost profit margins.
Second, MercadoLibre is a logistics giant. The stock is down about 18% from its all-time high because investors are worried -- management lowered the threshold for free shipping in Brazil, leading some to believe that profits will be impacted. But investors overlook that the company is becoming more efficient with shipping.
In Q3, MercadoLibre's shipping expenses per item sold in Brazil dropped 8% quarter over quarter. The company is using robotics in warehouses, and the network has better utilization rates, among things that reduce expenses. This offsets some of the headwind from free shipping. But the advantage of free shipping is that it boosts adoption, a great long-term move.
Third, MercadoLibre is doing a lot in the financial sector as well. It extends beyond the company's fintech services, which now have more than 72 million active monthly users, representing a 29% increase. The company offers credit cards and lending services, which have excellent financials.
It's hard to put an exact number on MercadoLibre's revenue potential, but consider this: This business is a leader in these categories, and the region is still underpenetrated. If the company continues to grow revenue at a low double-digit annual rate, it would be pushing $100 billion in annual revenue within a decade. I don't think that's unrealistic.
MercadoLibre's stock is cheap
As of this writing, MercadoLibre has generated about $7.7 billion in trailing-12-month cash from operations. Compared to its market cap of $110 billion, it trades at only about 14 times its operating cash flow, which is historically pretty cheap.
For perspective, Amazon trades at 20 times its cash from operations. But MercadoLibre is growing much faster than Amazon, and arguably has a longer runway for growth. Therefore, I believe MercadoLibre's stock is undervalued, given its long-term growth opportunities.
Furthermore, as it grows, MercadoLibre may be able to pursue other avenues for growth. Consider that advertising wasn't much of a thing for the company until recently, and now it's offering some of its best growth. I believe the company can grow within its core business units, but growth will likely yield new opportunities that can't be quantified today.
For these reasons, I believe that shares of MercadoLibre can triple in value over the next decade. It's why I continue to hold my position.
