Building wealth in the stock market is very straightforward. It's all about patiently holding shares of competitively positioned businesses that grow their revenues and profitability. Occasionally, the market sends these stocks lower, creating attractive buying opportunities for investors focused on the company's long-term trajectory.
Here are two growth stocks to buy now after their recent pullback.
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1. MercadoLibre
Millions of people across Argentina, Mexico, and Brazil are shopping on MercadoLibre's (MELI 6.67%) marketplace. It provides the same level of convenience to shoppers in Latin America as Amazon does in the U.S. MercadoLibre is the dominant e-commerce and digital financial services provider in this highly populated region, and it's still in the early stages of growth.
There is a long runway ahead. Latin America has over 650 million people -- about double the U.S. -- yet e-commerce penetration relative to total retail spending in the region is behind that of the U.S., U.K., and China. In the recent quarter, MercadoLibre's total unique buyers grew 26% year over year to 76 million. It also had more than 72 million fintech users, up 29% year over year.
NASDAQ: MELI
Key Data Points
MercadoLibre's growing ecosystem of products, including credit cards and lending, provides multiple ways to monetize its growing user base. Over the past four years, trailing-12-month revenue climbed from $6 billion to over $26 billion. And improving margins is helping profits grow even faster.
The company has taken on more debt to expand consumer credit products, but customer defaults have remained low, indicating that management is disciplined in expanding this side of the business. Over time, these offerings should further strengthen MercadoLibre's position as the region's leading digital financial services provider.
At a reasonable forward price-to-earnings multiple of 32, the stock looks attractive relative to Wall Street's 32% annual earnings growth estimate in the next several years. The recent pullback offers a compelling entry point.
3. Shopify
While Amazon dominates U.S. e-commerce, millions of small businesses worldwide still need help building an online storefront and accepting payments. Shopify (SHOP 2.31%) provides the essential tools to set up a store, ship products, take payments, and more. Revenue grew 31% year over year in the fourth quarter as the company continues to tap a massive addressable market.
NASDAQ: SHOP
Key Data Points
President Harley Finkelstein noted that 2026 will create a "new normal" for artificial intelligence (AI) shopping -- and Shopify intends to lead. Shopify partnered with Alphabet's Google on the Universal Commerce Protocol (UCP), enabling merchants to sell directly through AI Mode in Google Search and the Gemini app. Since January, Shopify merchants have seen a 15-fold increase in orders from customers discovering products through AI search.
The stock is down 38% from its recent high, reflecting fears that AI could disrupt Shopify's business. But so far, it's been the opposite. AI is helping Shopify by making it easier for people to discover products online. Given its ubiquitous online presence, many products discovered through Google Search are sold by Shopify merchants.
The stock still trades at a high multiple, but Shopify is pairing strong growth with new ways to reach customers through AI. With global e-commerce at roughly $4 trillion and growing, Shopify's long-term outlook remains bright, making it a top growth stock to buy right now.
