MercadoLibre stock offers shelter from U.S. tariff uncertainty with strong performance in Latin America.

From Yahoo Finance: 2025-04-20 05:45:00

Investing in U.S. stocks faces uncertainty due to fluctuating tariff levels. International stocks like MercadoLibre (NASDAQ: MELI) offer shelter from tariffs, focusing solely on Latin America’s growth story. The company’s e-commerce, fintech, and logistics services remain unaffected by U.S. tariffs.

MercadoLibre’s success in Latin America is evident, with a history of addressing regional needs. Its fintech arm, Mercado Pago, has expanded beyond cash-based transactions, boosting revenue. Additionally, Mercado Envios enhances logistics by offering fast delivery not previously available in the region.

Despite a 38% revenue increase in 2024, MercadoLibre faced rising costs, impacting net income growth. Analysts predict a 24% revenue increase in 2025, a concern for investors. Yet, the stock has risen by 45% in the past year, boasting a P/E ratio of 55 compared to Amazon’s growth phase.

MercadoLibre’s minimal U.S. exposure makes it a safe investment amidst tariff concerns. Despite potential setbacks from Mexico’s ties to the U.S., the company’s focus on Latin America’s needs and competitive P/E ratio position it for growth. Investors should consider the company’s performance and future potential before investing.

Read more: MercadoLibre Stock Will Likely Stand Out Amid Tariff Pressures. Here’s Why.