1 Reason to Buy and Hold MercadoLibre Stock for the Next 10 Years

MrDecoder · 2026-03-04T12:09:14+00:00

MercadoLibre has seen impressive growth, rising 1,500% over the last decade. Its success stems from a strong growth flywheel, attracting customers with its marketplace and fintech services. Despite current low stock prices, the company's expansion and strong financial metrics suggest significant future growth potential for investors.

MrDecoder

2026-03-04 12:09:14

Abstract generation in progress

MercadoLibre (MELI 3.59%) has been a rewarding growth stock, up about 1,500% over the last decade. It continues to grow rapidly, as it still has tremendous opportunities to expand across a large region.

The reason to buy and hold the stock is the company’s powerful growth flywheel. MercadoLibre attracts customers with a vast selection and free shipping on its marketplace. It deepens engagement with fintech offerings, such as digital payments and credit cards, that offer frequent shoppers special perks. This creates a loyal customer base, and it’s why the stock can be a rewarding investment.

Image source: Getty Images.

A key driver is Mercado Pago, which has 78 million monthly active users. Many customers depend on MercadoLibre for everyday financial needs, such as payments and credit cards. In the fourth quarter, the company’s credit portfolio grew 90% year over year. Credit card rewards can be used on MercadoLibre’s marketplace, keeping the growth flywheel going by building an even larger base of frequent shoppers.

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NASDAQ: MELI

MercadoLibre

Today’s Change

(-3.59%) $-63.86

Current Price

$1713.14

Key Data Points

Market Cap

$87B

Day’s Range

$1660.58 - $1720.26

52wk Range

$1654.24 - $2645.22

Volume

43K

Avg Vol

586K

Gross Margin

44.50%

As high-margin services like fintech products grow, they generate profits that can be reinvested into better customer experiences – including faster delivery and free shipping offers that encourage more purchases. For the company’s largest market, Brazil, investments in value-enhancing initiatives contributed to a 35% year-over-year increase (on a constant-currency basis) in gross merchandise volume (GMV) in the fourth quarter.

This positive cycle of growth, reinvestment, and more value added to the customer experience can deliver compounding growth for investors for years to come. The best part is that MercadoLibre’s stock is trading at its lowest price-to-sales ratio in years, currently around 3. This is a significant discount to its five-year average sales multiple of 6.8, making it a compelling buy.

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