10 Best Fintech Stocks To Buy in 2024

4. MercadoLibre, Inc. (NASDAQ:MELI)

Number of Hedge Fund Holders: 84

MercadoLibre, Inc. (NASDAQ:MELI) is Latin America’s leading fintech and e-commerce company. With the agenda of democratizing commerce and financial services in Latin America, the company was founded 25 years ago. Hence, it enables e-commerce and digital financial services for its users through a complete suite of technology solutions. The firm has a presence in 18 countries including Argentina, Brazil, Mexico, Colombia, Chile, and Peru.

MercadoPago, the firm’s fintech platform, provides a comprehensive set of financial technology services. For individuals, it has a digital account offering a debit card, online payments, insurance, savings, investments, and credit lines. For merchants, it provides online and physical point-of-sale payment processing services and a digital account. With financial services ripe for disruption in the chosen markets, the company operates a fintech business that matches the lowest cost-to-serve in the region. This highly profitable business positions MercadoLibre for market share gains across the region. It is also building MELI+ with the goal of being the largest and most valued regional loyalty program. At the same time, the firm is a top digital commerce platform in Latin America, a region with one of the fastest-growing Internet penetration and e-commerce growth rates globally.

The firm delivered a strong top-line and bottom-line growth during the fiscal second quarter. With a 20% rise in gross merchandise volume and a 36% rise in total payment volume, the revenue increased by 42% year-over-year. Net income rose by 103% as compared to the prior year. The strength of MercadoLibre, Inc. (NASDAQ:MELI) across geographies is evident from revenue growth of 51% year-over-year in Brazil and 66% year-over-year in Mexico. The Commerce and Fintech revenue streams continue to grow, with 53% and 28% increases since 2023 respectively. Furthermore, the adjusted free cash flow of $678 million in Q2 and $838 million year-to-date demonstrates the firm’s ability to generate cash even when it is investing in other growth opportunities.

With a solid market cap of $102.91 billion, a diversified mix of revenue, and a significant potential for growth as a leading fintech and an e-commerce platform, investors can consider MercadoLibre, Inc. (NASDAQ:MELI). The company’s prior financial performance has also been consistently strong. Over the past 5 years, the company has managed to grow its revenue by 56.85% and its net income by 145.56%. As of Q2, the stock is held by 84 hedge funds while Generation Investment Management is the most prominent shareholder.