Aggressive Stock Portfolio: 12 Stocks Picked by Hedge Funds

2. MercadoLibre, Inc. (NASDAQ:MELI)

3-Year Average Revenue Growth: 43.24%

Number of Hedge Fund Holders: 96

MercadoLibre, Inc. (NASDAQ:MELI) is a leading e-commerce and financial technology company operating across Brazil, Mexico, Argentina, and other international markets. The company runs Mercado Libre Marketplace, a platform accessible via mobile app and website, facilitating transactions for buyers and sellers.

MercadoLibre, Inc. (NASDAQ:MELI) reported strong financial results for Q4 ending December 31, 2024, surpassing earnings expectations with an EPS of $12.61 against the estimated $10.21. The company generated $21 billion in revenue for the full year, reflecting a 37.53% increase from 2023, and achieved over $1 billion in free cash flow.

Furthermore, growth was driven by higher gross merchandise volume (GMV) and total payment volume (TPV) across key markets. Its fintech platform experienced substantial expansion, surpassing 60 million monthly active users. On the other hand, the credit business saw rapid growth, with 5.9 million new credit cards issued in 2024, more than doubling its portfolio.

Despite macroeconomic challenges, MercadoLibre, Inc. (NASDAQ:MELI) continued strengthening its logistics infrastructure, launching new fulfillment centers, and expanding free shipping options. Additionally, the company introduced technological improvements, including virtual try-on features, optimized grocery shopping interfaces, and more efficient routing algorithms. These advancements contributed to a 29% year-over-year increase in shipped items.

Moreover, Mercado Pago expanded its investment offerings, launching the MELI dollar, a stablecoin, and new tax-free investment products in Brazil. These initiatives further strengthened its presence in the region’s financial sector.

Looking ahead to 2025, MercadoLibre, Inc. (NASDAQ:MELI) remains optimistic about further growth, supported by rising e-commerce adoption and digital financial services. However, the company continues refining its risk management approach for its credit portfolio, particularly in Brazil, amid rising interest rates.

Furthermore, Argentina’s improving macroeconomic conditions provide a favorable outlook for its business. With ongoing investments in technology and financial services, MercadoLibre is well-positioned to capitalize on digital commerce trends, making it one of the top stocks for our stock portfolio, with strong revenue growth and shareholder value.