5 Best E-Commerce Stocks To Buy According to Analysts

4. Mercadolibre, Inc. (NASDAQ:MELI)

Average Analyst Share Price Upside: 30.10%

Average Analyst Share Price Target: $1935.45

MercadoLibre, Inc. (NASDAQ:MELI) is a prominent e-commerce technology company based in Latin America, with its headquarters situated in Buenos Aires, Argentina. Established in 1999, the company operates primarily through its key platforms, MercadoLibre.com and MercadoPago.com. MercadoLibre, Inc. (NASDAQ:MELI) provides a diverse array of solutions tailored for individuals and businesses engaged in online buying, selling, advertising, and payment transactions.

Insider Monkey’s examination of 933 hedge fund portfolios revealed that 81 funds held stakes in MercadoLibre, Inc. (NASDAQ:MELI). The largest shareholder of MercadoLibre, Inc. (NASDAQ:MELI) was Generation Investment Management, led by David Blood and Al Gore, which possesses a $673 million stake in the company.

Lakehouse Global Growth Fund stated the following regarding MercadoLibre, Inc. (NASDAQ:MELI) in its fourth quarter 2023 investor letter:

“The Funds second largest holding, Buenos Aires-based e-commerce leader MercadoLibre, Inc. (NASDAQ:MELI) delivered another standout result in November that came in well ahead of analysts’ expectations. Net revenue grew 40% year-on-year in U.S. dollar terms to $3.76 billion while operating income grew 131% to $685 million, providing a very impressive balance of growth and profitability. The marketplace business grew across all major regions and total gross merchandise volume (GMV) increased to $11.4 billion, up 32% year-on-year. The platform’s core metrics remained healthy with items sold accelerating for the fourth straight quarter to 357 million, unique buyers increasing 18% year-on-year to 50.3 million and items sold per buyer reaching an all-time high of 7.1.

As always, the company continues to invest in its logistics capabilities and is now able to deliver 80% of all items sold within 48 hours and 54% same or next day. In our view, building and owning a first-class logistics network is critical for the company’s success as it will ultimately help protect its market share and profits from competitors over the long-term. We also note that faster shipping accelerates sales growth, which in turn, fosters wider selection, better prices, and greater investment in logistics, all part of a virtuous cycle. Zooming out, as the largest ecommerce player in LATAM, we continue to believe MercadoLibre is in an ideal position to capitalise on the significant opportunities ahead and deliver many years of above average growth and margin expansion.”