Prediction: MercadoLibre Will Join Amazon, Walmart, and Costco in the $50 Billion Revenue Club by 2027

MercadoLibre (NASDAQ: MELI) is a hot tech stock you may not have heard of if you don't live in Latin America. It's the largest e-commerce company in the region, but it's still much smaller than retail giants Amazon, Walmart, and Costco Wholesale.

However, it's growing much faster than all of these stocks, and it could join them as a $50 billion revenue stock by next year. Here's how.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

MercadoLibre's main business is e-commerce, which accounts for slightly more than half of total revenue. In that way, it's a different model from the other retailers, which are more of a pure-play retail model. Even Amazon, which has a cloud business, Amazon Web Services (AWS), an advertising business, and several other segments, relies on e-commerce for more than 60% of its total revenue. When you include the ad business as part of e-commerce, as MercadoLibre does, it's more than 70%

The fintech business, though, isn't completely separate; it was created to support payments on the MercadoLibre marketplace, and it's a component of the ecosystem. People who engage with the fintech platform are also more highly engaged with the e-commerce platform, and they're both growing rapidly.

In the 2026 first quarter, total revenue increased 49% year over year, with a 42% increase in gross merchandise volume (GMV) and a 41% increase in total payment volume.

If MercadoLibre can continue to report similar growth over the next few quarters, it should easily reach $50 billion in trailing-12-month revenue by next year. Right now, it has $31.8 billion, and if it grows at a compound annual growth rate (CAGR) of 45%, it should surpass $50 billion before the end of 2027.

There are many reasons to believe that it can hit this goal and keep growing. Latin America is underpenetrated in both e-commerce and financial technology, but it's shifting as MercadoLibre improves its value proposition. One of the most consequential decisions it has made was to lower the free shipping threshold in Brazil last year, and that continues to deliver results. Unique active buyers are accelerating in the country, with a 32% increase year over year in the first quarter, as are GMV and items sold, which were up 38% and 56% respectively.

Joining the ranks of similar large e-commerce and retail giants might take time; Amazon and Walmart are the two largest companies in the world by sales, and Costco, the smallest of the three, has $294 billion in trailing-12-month sales. For MercadoLibre to reach that, it would need to grow at a CAGR of 25% for the next 10 years. That's a real possibility, although Costco would also be much bigger at that point.

MercardoLibre stock trades at a P/E ratio of 49, near a 10-year low it reached earlier this year, and this could be a great opportunity to buy on the dip.

Before you buy stock in MercadoLibre, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and MercadoLibre wasn't one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $395,679!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,294,805!*

That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul.

*Stock Advisor returns as of July 13, 2026.

Jennifer Saibil has positions in MercadoLibre and Walmart. The Motley Fool has positions in and recommends Amazon, Costco Wholesale, MercadoLibre, and Walmart. The Motley Fool has a disclosure policy.

Prediction: MercadoLibre Will Join Amazon, Walmart, and Costco in the $50 Billion Revenue Club by 2027 was originally published by The Motley Fool