Key Points
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A red-hot growth business whose stock is falling is a perfect buying opportunity for patient investors.
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MercadoLibre is a rapidly growing e-commerce and fintech provider in Latin America.
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Wix is getting beaten down by the software disruption narrative, but it should do just fine in the coming years.
- 10 stocks we like better than Wix.com ›
What is a growth stock? You may think it’s a stock whose price is rocketing higher. However, the smarter definition that will lead to better long-term gains for your portfolio is to think of a growth stock as an equity representing a business that is firing on all cylinders, regardless of where the stock price trades.
In fact, the best buying opportunities among growth stocks can arrive in your lap when a stock price is down, but the underlying business is seeing accelerating growth. Here are two red-hot growth stocks that fit this criteria that should make great buys for your portfolio in 2026.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
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Buying the dip on MercadoLibre
One of the fastest-growing large technology businesses in the world is MercadoLibre (NASDAQ: MELI). The company is one of the top e-commerce and fintech providers in Latin American countries such as Mexico and Brazil, leading the way with its combined payment tools and online shopping portal.
Last quarter, the company reported yet another round of skyrocketing growth. Net revenue grew 47% year over year in constant currency, reaching over $25 billion for the full year 2025. Commerce revenue grew 40%, while fintech revenue grew 51% year over year, underscoring how these two product categories reinforce each other in countries like Argentina, which is experiencing an economic recovery after a period of hyperinflation.
Long-term, there is an immense opportunity for MercadoLibre to grow both sides of its business. E-commerce penetration is much lower in Latin America than in more developed nations, giving the business a huge runway to keep growing. Wall Street is upset that investments are being made that will sacrifice profits in the short run, but they will lead to a much larger MercadoLibre business a decade from now.
A dirt-cheap software stock set for an acceleration
The second red-hot growth stock has gotten brutally beaten down by the market: Wix.com (NASDAQ: WIX). Wix is a website builder getting caught up in the software stock meltdown over artificial intelligence (AI) disruption fears.
Investors believe that Wix will be displaced by AI coding agents that will make websites for people themselves. It’s hard to believe this will be the case, given Wix’s current business and customers. First, Wix is already a platform that lets you build a website without any coding, which is what AI is theoretically going to replace. Second, Wix’s customers are individual contractors and small businesses, such as restaurants, that are not exactly looking to add cutting-edge software tools every day.
The disruption risk is highly overblown, and Wix is already preparing for more intensive competition. It acquired Base44, a vibe coding application builder that went from $0 in revenue when it was bought in June to over $50 million in annual recurring revenue by the end of 2025. This hypergrowth asset could help revenue accelerate in 2026.
With Wix stock trading down 82% from all-time highs, now might be a great time to buy this stock, which is accelerating top-line growth.
Should you buy stock in Wix.com right now?
Before you buy stock in Wix.com, consider this:
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Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MercadoLibre and Wix.com. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
