Ken Fisher’s Top 10 Growth Stock Picks with 30+% Revenue Growth

3. MercadoLibre, Inc. (NASDAQ:MELI)

Number of Hedge Fund Investors  in Q1 2024: 79

3 Yr Revenue Growth: 53.86%

Fisher Investments’ Q1 2024 Stake: $239 million

MercadoLibre, Inc. (NASDAQ:MELI) is a Uruguay based eCommerce company that is one of the hottest companies in the industry. While big ticket eCommerce names like Amazon and Alibaba are based primarily in the US or China, MercadoLibre, Inc. (NASDAQ:MELI) is the leading player in the growing Latin America region that is known for fast growth economies and upward population trends. The firm has utilized these trends well, and it has developed a proprietary logistics network that enables it to deliver 80% of packages within two working days. MercadoLibre, Inc. (NASDAQ:MELI) has also introduced its digital payments platform called Pago, through which it aims to take a two pronged approach by not only deepening customer loyalty but also penetrating the Latin American financial technology industry. These strengths have translated into robust profit growth, with MercadoLibre, Inc. (NASDAQ:MELI)’s first quarter net income of $344 million marking a 71% annual growth.

Lakehouse Capital mentioned MercadoLibre, Inc. (NASDAQ:MELI) in its May 2024 investor letter. Here is what the firm said:

“The Fund’s largest position, Buenos Aires based e-commerce leader MercadoLibre, Inc. (NASDAQ:MELI), reported a robust result that once again came in ahead of analyst expectations. Net revenue grew 30% year-on-year in U.S. dollar terms to US$4.0 billion while operating margins came in at 12.0%, providing a healthy balance of growth and profitability. Its marketplace business proved resilient, with strength in Brazil and Mexico more than enough to offset weakness in Argentina, which contacted by roughly a third due to weak macroeconomic conditions exacerbated by the 50%-plus devaluation of the Argentine Peso in December 2023. Whilst the economic situation in Argentia remains severe, we are comfortable with the risk as not only has management proved very adept at handling the challenges to date, but post the devaluation, the risk is meaningfully reduced as Argentina now only contributes 13% of the company’s total operating income. Overall, gross merchandise value still grew at 20% year-on-year to $11.4 billion and we continue to see significant opportunities ahead given the relatively nascent penetration of e-commerce in the region.”