Everyone Is Talking About SpaceX. Here Are 2 Growth Stocks I Like Much Better.

The article is bullish on MercadoLibre and On Holding, highlighting MercadoLibre's 49% revenue growth in Q1 2026, 26% growth in unique active buyers, and 43x trailing earnings valuation, while On Holding posted 26% currency-neutral sales growth with gross margin expanding to 64.2% and profit margin to 12.4%. Both companies are framed as stronger growth options than SpaceX due to profitable operations, premium positioning, and underpenetrated markets. This is opinion-driven stock commentary rather than fresh market-moving news.

Analysis

The market is implicitly penalizing both names for reinvestment intensity, but the more important signal is that each is choosing to sacrifice current margins to deepen an ecosystem moat. That usually matters most when unit economics are still improving: if incremental users and payment volume keep compounding, the near-term P&L pressure is more likely to be a feature than a bug. The second-order implication is that lower price points and broader distribution can force weaker regional or niche competitors into subscale profitability long before either company needs to slow growth.

For MELI, the hidden catalyst is credit attach. As financial services penetration rises, the company can monetize the same customer base multiple times, which should support earnings leverage once loss curves normalize; the market is likely underestimating how quickly fintech can offset e-commerce margin compression. The main risk is not competition but asset quality: if macro weakens across Latin America, the credit book becomes the swing factor and the stock can de-rate even if headline GMV stays strong.

For ONON, the premium/full-price strategy is powerful only if brand heat remains intact; the first sign of dilution would be promotion reliance or slower sell-through in DTC. The contrarian read is that the stock may deserve a higher multiple than a standard athleticwear name because its customer base is less rate-sensitive, but that also makes the equity vulnerable to any slowdown in affluent consumer spending. The opportunity is that brand-building in the U.S. is still early enough that distribution gains can compound for years, so this is more of a multi-quarter execution trade than a near-term macro call.

Key Decisions for Investors

• Go long MELI on weakness over the next 2-4 weeks, with a 6-12 month horizon; use the current de-rating as an entry point because the setup is about margin recovery and operating leverage, not near-term multiple expansion.
• Add ONON on pullbacks and hold through the next 2-3 quarters; risk/reward favors upside if full-price discipline persists, but trim if promotional intensity rises or DTC growth decelerates.
• Pair trade: long MELI / short a weaker Latin American e-commerce or payments proxy over 3-6 months; thesis is that scale + fintech monetization should widen the gap as capital markets reward durable free cash flow over pure growth.
• For more aggressive expression, buy 6-9 month MELI call spreads financed with a small short in a high-multiple unprofitable growth basket; the key risk is credit deterioration, so size modestly.
• Set a catalyst watchlist for both names around the next earnings print: if MELI asset quality remains controlled and ONON maintains full-price sell-through, expect multiple re-rating over the following 60-90 days.