15 Best Growth Stocks to Buy for the Next 3 Years

5. MercadoLibre Inc. (NASDAQ:MELI)

3-Year Revenue CAGR: 43.24%

Number of Hedge Fund Holders: 96

MercadoLibre Inc. (NASDAQ:MELI) is an online commerce platform that operates Mercado Libre Marketplace. This online commerce platform can be accessed through the mobile app or website. It also operates Mercado Pago, which is a financial technology solution platform.

In 2024, MercadoLibre made $21 billion in revenue and more than $1 billion in free cash flow. This growth came from higher gross merchandise volume (GMV) and total payment volume (TPV) across key markets, such as Argentina, Brazil, and Mexico. On April 7, Bloomberg reported that MercadoLibre Inc. (NASDAQ:MELI) plans to increase its investment in Brazil by 48% to invest ~$5.8 billion in 2025.

This investment will enhance the company’s logistics, technology, marketing, and financial capabilities and allow MercadoLibre Inc. (NASDAQ:MELI) to increase its staff in Brazil by 14,000 to reach a total of 50,000 employees. Moreover, the company introduced technological improvements like virtual try-on features and optimized grocery shopping interfaces that contributed to a 29% increase in shipped items.

Lakehouse Global Growth Fund highlighted the company’s significant future potential and stated the following regarding MercadoLibre, Inc. (NASDAQ:MELI) in its February 2025 investor letter:

“The Funds largest position, e-commerce leader MercadoLibre, Inc. (NASDAQ:MELI), delivered another impressive quarterly result, combining robust growth with improving profitability. Net revenue grew 37% year-on-year in U.S. dollar terms to $6.1 billion while operating margins climbed to 13.5%, which was particularly pleasing given the company remains firmly in reinvestment mode. Key operational metrics for its marketplace underscored this strength, with items sold increasing 27%, unique buyers climbing 24% to a new high of 67 million and items per buyer increasing to 7.8. Importantly, the company continues to gain incremental market share in its primary regions, namely that of Brazil and Mexico.

The outperformance of the company’s advertising business also continues to be bright spot, growing 40% plus year-on-year in USD terms. As of today, the advertising business still only represents 2.1% of GMV, which is well below the level of more mature e-commerce peers globally and suggests there is still plenty of runway to grow the ads business. This not only provides another attractive growth vector but also a meaningful lever to improve profitability over time given the higher-margin nature of advertising revenue.”