MercadoLibre's stock has declined 20% over the past year despite reporting strong Q4 revenue growth of 45% to $8.76 billion. While earnings per share fell 13% due to margin compression from investments in free shipping and credit cards, the company's fintech business is thriving with credit card portfolio doubling and payment volumes jumping 42%. With a forward P/E of 20.5 and PEG ratio below 0.5, the analyst views the stock as attractively valued and recommends buying the dip.

The article highlights MercadoLibre and Dutch Bros as potential multibagger stocks with significant long-term growth opportunities. MercadoLibre, a Latin American e-commerce and fintech giant, demonstrated strong Q4 2025 results with 47% revenue growth and expanding user bases. Dutch Bros, a coffee chain with over 1,000 stores, aims to reach 7,000 stores by the late 2020s, with improving profitability metrics.

MercadoLibre reported strong fourth-quarter growth across its business, but profitability concerns are weighing on the stock. Shares have declined 33% from their 52-week high, including a 10% drop following the earnings announcement, raising questions about whether the stock presents a buying opportunity.

Foxhaven Asset Management exited its entire $122.39 million position in Wix.com, selling 689,041 shares. Wix stock has declined 70% over the past year, significantly underperforming the S&P 500's 15% gain. Despite operational strength with 14% revenue growth and raised guidance, the stock faces valuation pressure from AI investment costs and shifting market expectations for software companies.

Three retail companies are identified as potential 2026 comeback stories despite underperforming year-to-date: MercadoLibre, a Latin American e-commerce and fintech leader with 39% YOY revenue growth; On Holding, a Swiss performance apparel company with 25% YOY net sales growth and strong Asia-Pacific expansion; and Chewy, a pet e-commerce leader showing improved profitability and expanding into vet care services.

MercadoLibre faces structural competitive threats from Shopee, Temu, and Nubank that are aggressively competing through low commissions, shipping subsidies, and ultra-low pricing. The key concern for 2026 is whether the company can maintain profitability amid permanently shifted consumer price expectations and reduced pricing power, rather than its continued growth trajectory.

MercadoLibre reported Q4 earnings of $11.03 per share, missing analyst expectations of $11.59, but revenue of $8.76 billion beat estimates of $8.47 billion and grew 44.6% year-over-year. The stock declined 2.32% in extended trading following the mixed results.

The article recommends three long-term growth stocks: MercadoLibre, positioned as the Amazon of Latin America with strong e-commerce growth driven by mobile adoption; Alibaba Group, China's e-commerce leader expanding into AI and cloud computing; and Uber Technologies, benefiting from generational shifts away from car ownership and positioned for future robotaxi market dominance.

MercadoLibre faces a critical challenge in 2026: while revenue growth remains strong at 30%+, operating margins are compressing due to aggressive free shipping subsidies and promotions needed to compete with rivals like Shopee and Temu. Operating margin fell to 9.8% in Q3 2025 from 10.5% year-over-year. The core risk is that these margin-pressuring tactics may become permanent industry norms rather than temporary measures, potentially limiting the company's ability to achieve operating leverage despite continued revenue expansion.

The article recommends e.l.f. Beauty and MercadoLibre as two growth stocks with potential to double investors' money. E.l.f. Beauty is expanding through new products, markets, and the acquisition of luxury brand Rhode, with strong Q3 FY2026 earnings showing 38% revenue growth. MercadoLibre, a Latin American e-commerce giant, reported 49% year-over-year revenue growth and is expanding its fintech segment with 72 million monthly active users. Both stocks are trading below their three-year average P/E ratios, presenting buying opportunities.

The article recommends MercadoLibre and Dutch Bros as two strong long-term investment opportunities. MercadoLibre, a Latin American e-commerce and fintech powerhouse, shows strong growth with 35% GMV increase and expanding fintech services. Dutch Bros, a growing U.S. coffee chain with over 1,000 stores, plans to expand to 2,029 stores by 2029 with improving profitability and comparable sales growth of 7.7%.

The Motley Fool presents 10 stocks across various industries that could offer significant upside potential for long-term investors. The article discusses a mix of companies with both short- and long-term growth opportunities, with particular emphasis on technology and AI-related investments.