Businesses involved with selling items online saw massive growth, and consumers were spending much of their newly found financial resources (from stimulus checks and lack of spending on other activities) with various vendors. One stock in particular where this is true is MercadoLibre (NASDAQ: MELI). Investors need to understand some of the risks, but now could be a once-in-a-lifetime buying opportunity for MercadoLibre.
The novelty of online shopping and digital payments has worn off to some degree, but both industries are still growing quickly. Cash accounted for 21% of in-store payment volume in 2020, but that figure will fall to 13% by 2024, according to WorldPay. Similarly, online sales accounted for just 18% of total retail sales in 2020, but that figure will rise to 24% by 2025, according to eMarketer.
These companies, involved in e-commerce, fintech, energy, and insurance (among other things) are likely to do very well in the decades to come.