The whole continent is now coming out of the turn

Getting straight to the point, Latin America is where North America was in the late 1990s and early 2000s.

Think about that time period. The internet was still relatively new, and high-speed broadband connections were quickly becoming the preferred means of connecting to it. Although true smartphones weren't yet common, significant ownership of mobile phones at the time at least set the stage for smartphones' eventual rapid adoption.

Of course, this double-barreled technological revolution gave rise to online shopping and digital payments that made Amazon the smashing success it has become.

There are some differences between North America then and South America now, to be sure. Namely, South America is considered a "mobile first" market, meaning smartphones are many consumers' primary -- and sometimes only -- internet connection. Indeed, digital marketing company Siprocal reports that more than 270 million of Latin America's residents (about 58% of the population) are mobile-first consumers, making their phone the centerpiece of a digital ecosystem that extends to television and even out-of-home media.

The ultimate outcome is still the same, though. That is, as connectivity technology spreads, online shopping follows.

That's why Americas Market Intelligence PCMI believes the region's e-commerce industry is set to expand to the tune of 21% this year, with similar growth in the cards at least through 2027, largely driven by ongoing smartphone adoption. For perspective, GSMA expects Latin America's smartphone penetration rate to swell from 2023's figure of 80% of all mobile phone users to 92% by 2030. It may not even take until 2030 to reach that mark, however. Technology market research outfit Canalys reports that a record-breaking 137 million smartphones were shipped to Latin America last year alone.

Just know that whenever it happens -- much like their U.S. counterparts -- each of these users is apt to increasingly utilize their web-connected devices the longer they own one.

MercadoLibre is positioned to capture more than its fair share of this growth by having a hand in nearly all facets of the expansion.

Just don't wait too long (if you're planning on waiting at all)

Plenty of U.S. investors seem to see it coming too, if this U.S.-listed stock's 300% run-up from 2022's bear market low to its recently reached new record high is any indication. That's a move that could be downright intimidating to would-be newcomers, in fact.

Don't be too discouraged or dissuaded, though.

This company's situation is very similar to Amazon's a couple of decades back. Then , every time it looked and felt like Amazon couldn't possibly continue to grow as it had in the past, it found a way to do so, working its way toward better profitability the whole (although MercadoLibre is already reliably profitable, for the record) as the stock climbed investors' wall of worry. In retrospect, we can look back and see that Amazon's persistent success was rooted in a sociocultural and technological revolution that mere economic headwinds wouldn't stop.

That's a particularly important point for MercadoLibre right now, considering the backdrop of potential economic weakness prompted by a tariff war that may or may not actually be over. Even though Brazil, Argentina, and most of South America will only be subject to the United States' affordable 10% baseline import tariff, there's certainly a regional ripple effect from the steeper tariffs that Mexico and Venezuela could end up facing.

Don't underestimate capitalism's ability to find ways of growing sales and profits, though, assuming tariff and trade deals aren't worked out well enough to stave off an economic impact in the meantime. Remember, Amazon did just fine amid the fallout of 2008's subprime mortgage meltdown, mostly because North American consumers loved the convenience of online shopping and Amazon's low prices more than they felt the impact of economic headwinds. South America's consumers aren't apt to feel any differently if economic hardship is what actually awaits.

And for what it's worth, South America as a whole and the United States aren't exactly major trade partners. Brazil's top trade partner is China, while Argentina's is Brazil. Most of this continent's countries largely rely on one another, shielding them from tariff-prompted turbulence now surrounding the United States and its key trade partners.

Bottom line? MercadoLibre is a fantastic opportunity most people are overlooking. Wait for a pullback if you must. Just don't wait too long for a major price dip that may or may not ever arrive.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, MercadoLibre, and PayPal. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short June 2025 $77.50 calls on PayPal. The Motley Fool has a disclosure policy .

Prediction: MercadoLibre Will Beat the Market. Here's Why. was originally published by The Motley Fool