My 2 Favorite Growth Stocks to Buy Right Now

MercadoLibre and Uber are highlighted as attractive growth stocks: MercadoLibre (lead e-commerce/fintech in Latin America) reported ~76.8 million unique active buyers and 72.2 million fintech MAUs as of Q3 2025, with analysts forecasting 2024–2027 revenue and EPS CAGRs of 29% and 30% and a 2026 P/E of ~33x. Uber served 189 million MAPCs and 36 million Uber One subscribers at Q3 2025, with analysts projecting 2024–2027 revenue and adjusted EBITDA CAGRs of 16% and 28%; the company has an enterprise value of ~$174 billion and trades near 15x projected 2026 adjusted EBITDA. The piece notes a macro backdrop of rate cuts and rotation back into growth, and cites sizable addressable-market CAGRs for Latin American e-commerce/fintech and global ride-hailing/food delivery as drivers for further upside.

Analysis

Market structure: Winners are platform owners and last-mile logistics (MELI, Mercado Pago ecosystem, 3PL partners; UBER, delivery merchants and dense urban driver pools) while legacy cash-based retail, incumbent banks in LATAM, and fragmented taxi operators lose share. MELI’s vertical integration (marketplace + Mercado Pago) and UBER’s scale in rides+delivery create pricing power and higher take-rates; MELI trades ~33x 2026 EPS, UBER ~15x 2026 EBITDA (EV $174bn), implying different sensitivity to multiple expansion.

Risk assessment: Key tail risks are regulatory (fintech licensing, data/localization, gig-worker laws), country FX shocks (Argentina/BRL devaluation >20–30%), and margin pressure from fuel/wage inflation. Short-term (days/weeks) volatility likely around macro prints and rate chatter (5–10% moves); medium/long-term (12–36 months) outcomes hinge on execution against analysts’ ~2024–27 CAGRs (MELI revenue ~29%, UBER revenue ~16%) and market-share shifts if Amazon or local competitors scale.

Trade implications: Tactical core-long exposure to MELI and UBER is defensible: MELI for fintech monetization, UBER for EBITDA conversion via scale. Use size limits (2–4% portfolio each), active FX hedges for MELI, pair trades (long UBER / short LYFT) to isolate scale, and options (LEAP calls for asymmetric upside plus short-dated put spreads as cheaper hedges) around earnings and Fed events.

Contrarian angles: The market underestimates country-concentration and regulatory credit risk for Mercado Pago (if NPLs +200bps growth, valuation re-rate likely). UBER’s EBITDA multiple may be too conservative if delivery density improves; conversely MELI’s 33x multiple already prices near-perfect fintech execution. Watch measurable triggers (BRL move ±10% in 60 days, MAPC q/q change >5%, Mercado Pago NPLs +200bps) as re-pricing signals.

Key Decisions for Investors

• Establish a 2–3% long position in MELI (ticker MELI) as a 12–24 month core growth hold to capture marketplace + fintech upside; implement a 30% FX hedge on this position if BRL weakens >10% vs USD over a 60–90 day window or set a hard stop-loss at -20% from entry on USD terms.
• Establish a 3–4% long position in UBER (ticker UBER) for 12–36 months to play EBITDA conversion; if implied volatility is low, buy 12–18 month LEAP calls size ~25% of cash position to lever upside, and set a reconsider threshold to trim if MAPCs decline >5% quarter-over-quarter or adjusted EBITDA misses consensus by >10%.
• Implement a relative-value pair trade: long UBER / short LYFT (equal notional) for 6–12 months to capture Uber’s scale and diversified revenue mix; exit or flip if UBER underperforms LYFT by 15% on a relative basis or if UBER MAPCs contract >5% q/q.
• Hedge execution risk with options: buy a MELI Jan 2027 call (≈1-year+ LEAP) for asymmetric upside and buy a 3-month MELI 10–20% OTM put spread sized to cover ~30% of the long position ahead of major FX prints and earnings; unwind hedges if implied volatility falls >25% from entry or if Mercado Pago NPLs rise >200bps (re-evaluate).