MercadoLibre Stock Is on Sale. Here's What $5,000 Invested Today Could Do for Your Portfolio.

By Jeremy Bowman – Mar 28, 2026 at 1:45PM ESTKey PointsInvestors are worried about new competition facing MercadoLibre. Margins are falling as it invests in the business.It still has a long growth runway.MercadoLibre (MELI 1.86%) has been the top stock to own on the market for most of its history. Since its IPO, the Latin American e-commerce company has delivered stock growth of 5,500%. However, recently the stock has pulled back sharply on concerns about competition from the likes of Amazon and Sea Limited's Shopee, and margins have fallen as it steps up investments in logistics and other initiatives. With the stock now down 40% from its peak, here's how investing $5,000 in the stock could double your money over the next few years. Image source: Getty Images. Where MercadoLibre stands today MercadoLibre has delivered strong top-line growth over its history, and that continued into the fourth quarter with revenue up 45% to $8.76 billion. However, operating margins did decline, falling from a 14.6% in the quarter a year ago to 10.1%, which the company attributed to its strategic investments in free shipping, first-party e-commerce, cross-border trade, and its credit card business. While the sell-off is understandable, the top-line growth shows that MercadoLibre is still chasing a large growth opportunity as it expands into new markets in Latin America and further penetrates its core markets like Brazil, Mexico, and Argentina. MercadoLibre has also built an impressive set of competitive advantages, including its third-party marketplace, digital payments and fintech business, logistics business that delivers customer orders, and a credit business. Much like Amazon, those businesses are interconnected, reinforce each other, and are difficult to replicate. The company also has its own subscription membership program, MELI+, that offers similar benefits to Amazon Prime, including free delivery. ExpandNASDAQ: MELIMercadoLibreToday's Change(-1.86%) $-30.36Current Price$1600.63Key Data PointsMarket Cap$81BDay's Range$1593.36 - $1632.2152wk Range$1593.21 - $2645.22Volume33KAvg Vol579KGross Margin44.50% Can MercadoLibre bounce back? Investor sentiment has soured since the war in Iran began, and higher oil prices are going to pressure e-commerce and logistics companies. However, the company has fended off competition from Amazon and others in the past, and investors may need to see evidence that it can do it again. In order for the stock to start recovering, investors may need to see its operating margin expanding again, or at least stabilizing. MercadoLibre doesn't provide guidance, which is likely adding to those concerns, which means that investors will need to assess each quarter at a time. Still, it's a mistake to think that a company growing sales by 45% in a developing market is at risk of being disrupted. MercadoLibre isn't cheap, but at a price-to-earnings ratio of 40, the stock seems well-priced for its growth potential. Read NextMar 27, 2026 •By Catie HoganThe U.S. Market Is in Turmoil. Here's 1 Reason MercadoLibre Looks Better Than Ever.Mar 22, 2026 •By Rick Munarriz3 Latin American Fintechs That Are Growing Faster Than You ThinkMar 20, 2026 •By Josh Kohn-Lindquist3 Soaring Stocks to Hold for the Next 20 YearsMar 19, 2026 •By Brett SchaferTop 2 Once-in-a-Decade Consumer Picks for Long-Term InvestorsMar 18, 2026 •By Matt Frankel, CFPThe 3 Things That Matter Most for MercadoLibre Right NowMar 15, 2026 •By Jennifer SaibilMercadoLibre Stock Just Plunged After Earnings. Buy the Dip -- or Run for the Hills?About the AuthorJeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011.

Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.TMFHoboX@TMFBowmanStocks MentionedMercadoLibreNASDAQ: MELI$1,600.63(-1.86%)-$30.36AmazonNASDAQ: AMZN$199.47(-3.89%)-$8.07Sea LimitedNYSE: SE$78.16(-2.13%)-$1.70*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.