10 Best Internet Retail Stocks to Buy Now

4. MercadoLibre, Inc. (NASDAQ:MELI)

Number of Hedge Fund Holders: 84

MercadoLibre, Inc. (NASDAQ:MELI) is a leading e-commerce platform in Latin America, which originated in Argentina and is now based in Uruguay. It operates across 18 countries, providing a wide range of services designed to facilitate online buying and selling.

The company provides various services operating through two main business segments, e-commerce and Fintech.

The range of services provided by the company within its e-commerce segment includes a marketplace platform, where users can buy and sell products across various categories, and classifieds, allowing users to post and search for various listings, and Mercado Ads, an advertising platform enabling sellers to promote their products through targeted advertisements.

On the other hand, the Fintech segment provides digital payment services and credit (loan) services for buyers and sellers based on their transaction history.

MercadoLibre, Inc. (NASDAQ:MELI) released its third quarter results for fiscal 2024 on November 6th indicating a robust financial performance. The company delivered $5.3 billion net revenue up 35% year-over-year and a net income of $397 million with a 7.5% margin. Management attributed revenue and net income growth to solid improvement in unique buyers and monthly active users (MAU).

Unique buyers for its commerce segment grew 21% year-over-year across the region reaching 61 million. On the other hand monthly active users for the quarter grew 35% year-over-year to 56 million. It is one of the best internet retail stocks to buy now and was held by 84 hedge funds in Q2 2024, as per Insider Monkey’s database.

Artisan Developing World Fund stated the following regarding MercadoLibre, Inc. (NASDAQ:MELI) in its Q3 2024 investor letter:

“Top contributors to performance for the quarter included Latin American marketplace MercadoLibre, Inc. (NASDAQ:MELI). MercadoLibre reported an impressive acceleration in gross merchandise value (GMV) growth in its core Brazilian market, while acceleration in credit card lending and development of its digital advertising capabilities continued.”