MercadoLibre stock has fallen 31% from its peak, but the Latin American e-commerce and fintech leader is investing heavily in logistics infrastructure to support rapid growth, which could lead to market-beating returns over the next five years. The number of unique active buyers grew 26% year over year in the first quarter, gross merchandise volume increased 36%, and items sold rose 47%, while unit shipping costs declined 17% in local currency. Despite a profit margin that fell from 8.3% to 4.7%, analysts expect earnings to grow at an annualized rate of 29%, potentially doubling the stock's value in five years. E-commerce penetration in key markets like Argentina, Brazil, and Mexico remains below 10%, and the company's fintech arm has issued 2.7 million credit cards, creating a powerful growth flywheel.
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NVIDIA CorporationMercadoLibre Inc.Analysts expect 29% annual earnings growth and potential stock doubling; infrastructure spending fuels growth.