2 Unstoppable Growth Stocks to Buy and Hold Through 2035

MercadoLibre faces competitive pressure from Shopee in Latin America but is defending share by lowering minimums for free shipping and pursuing higher‑margin advertising monetization, which supports a long‑term buy thesis for patient investors. Microsoft is increasing AI and cloud investment but reported Azure revenue growth of 40% year‑over‑year in its fiscal 2026 Q1 (ended Sept. 30, 2025) and a $392 billion cloud contracted backlog up 51% YoY, underpinning confidence that heavy capex will pay off; the stock also offers a modest 0.8% forward yield after ~153% dividend growth over the last decade.

Analysis

Market structure: Winners are platform owners with scale — MSFT (cloud + AI: Azure +40% YoY, $392bn backlog +51% YoY) and leading LATAM marketplace MELI — and high-margin adjacencies (advertising, fintech). Losers are low-margin, price-led entrants (SE/Shopee) and smaller sellers unable to absorb accelerated free-shipping/unit economics; expect near-term margin compression in e-commerce but expanding gross margin contribution from advertising over 2–4 years.

Risk assessment: Tail risks include a sudden LATAM FX shock (BRL/ARS devaluation >20% in 90 days), regional regulation forcing price or data constraints, or a breakdown/renegotiation of MSFT–OpenAI terms; immediate (days) risk = earnings/guide surprises, short-term (weeks–months) risk = ad monetization cadence and CAC trending +10–20%, long-term (years) risk = fintech credit losses at MercadoPago. Watch triggers: if MELI gross margins fall >300bps YoY or ad growth <20% YoY for two quarters, downgrade; if Azure growth slips below 25% YoY or backlog growth <20% YoY, reassess MSFT valuation.

Trade implications: Tactical: establish a 3–5% overweight in MSFT for 12–36 months; express via Jan 2028 LEAP calls (buy-to-open 18–24 month ITM/ATM) sized to 1–2% portfolio notional. For MELI, build a 2–3% core long for 3–5 years, scale in on any >15% pullback; implement a relative-value pair long MELI / short SE (size ratio 1:1 nominal or market-cap neutral) to isolate LATAM e‑commerce share shift.

Contrarian angles: The crowd underestimates ad/fintech upside at MELI — advertising could meaningfully expand EBITDA margins by 300–600bps over 3 years if ad rev >30% YoY. Conversely, the market may be too sanguine on MSFT capex paying off; if AI spending drives operating leverage slower than expected, downside is non-trivial. Unintended consequence: aggressive Shopee discounting that compresses industry CAC could force consolidation and re-accelerate scale benefits for MELI within 12–36 months.

Key Decisions for Investors

• Establish a 3–5% overweight position in MSFT for a 12–36 month horizon via outright shares or Jan 2028 LEAP calls (size LEAP exposure to 1–2% of portfolio notional); trim if Azure YoY growth falls below 25% for two consecutive quarters.
• Initiate a 2–3% core long in MELI for a 3–5 year hold; dollar-cost average and add on any single-session gap down >15%; hedge 25–50% of position-dollar risk by pairing with a short SE (Sea Limited) position sized to be market-cap neutral.
• If short-term volatility rises ahead of earnings, sell covered calls on MSFT to harvest premium (target 0.5–1.0% monthly yield) and buy 12–18 month MELI LEAP calls to capture long-dated optionality while limiting downside.
• Reduce exposure to small-cap LATAM e-commerce sellers and FX-sensitive names by 2–4% in favor of USD-denominated revenue franchises; use FX forwards or USD cash to hedge material BRL/ARS translation risk if MELI exposure >3% of portfolio.
• Monitor three hard triggers over next 90 days before scaling: MELI ad revenue growth (target >30% YoY), MercadoPago NPLs (keep <5%), and MSFT cloud/backlog growth (keep >30% YoY); if two triggers fail, cut positions by 50%.