 is up by nearly 25% this year, and is currently just below its all-time high.){kind=link}
The stock market hasn’t exactly performed well recently. As I write this on April 22, the S&P 500 remains about 15% below its recent high, and the Nasdaq Composite index remains down 20%, in bear market territory.
However, not all stocks are in the same boat. In fact, MercadoLibre (NASDAQ: MELI) is up by nearly 25% this year, and is currently just below its all-time high.
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It’s not hard to understand why MercadoLibre has held up well in the recent market downturn. The company doesn’t sell anything in the United States, so it isn’t vulnerable to tariff uncertainty. Plus, the U.S. dollar has weakened recently, creating favorable foreign exchange headwinds for MercadoLibre investors.
It isn’t just the recent market downturn. As you can see from the chart below, MercadoLibre has crushed the market over pretty much any length of time:
|
Time Period |
MercadoLibre |
S&P 500 Total Return |
|---|---|---|
|
2025 (through April 22) |
24.5% |
(10.4%) |
|
3 years |
109% |
25% |
|
5 years |
269% |
107% |
|
10 years |
1,450% |
200% |
|
Since IPO (August 2007) |
7,330% |
411% |
Data source: YCharts. S&P 500 returns include reinvestment of dividends.
It’s not hard to see why MercadoLibre has been such a great investment. It has grown from a small start-up about 20 years ago into the most valuable company in Latin America. Over the past 10 years, merchandise volume on the marketplace has grown by more than 500% and the number of unique buyers has roughly quadrupled. Acquiring total payment volume in the Mercado Pago business has grown to nearly 10 times its 2018 level.
It isn’t just top-line growth. MercadoLibre’s operating margin has steadily improved from negative 6.7% in 2019 to nearly 13% in 2024.
Recent results show that the company’s momentum is still alive and well. In the fourth quarter of 2024, MercadoLibre’s gross merchandise volume (GMV) and total payment volume (TPV) grew by 27% and 33% respectively, year over year. The relatively small, but rapidly growing credit portfolio grew by an impressive 74%, and has tons of potential to bring customers who are underserved by the traditional banking system into MercadoLibre’s ecosystem.
MercadoLibre is one of the largest stock positions in my portfolio and has been an excellent performer for me (I’ve owned it for about five years). But I don’t think it’s done yet. In fact, I’ve added shares to my investment in 2025, despite the stock being near its all-time high.
MercadoLibre, market downturn, Nasdaq Composite index
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