What is a growth stock? You might think that the stock’s price is going up a lot. However, a smarter explanation that will lead to better long-term returns for your portfolio is to think of a growth stock as a representative value of the fund. business that is firing on all cylinders, regardless of where the stock price is trading.
In fact, the best buying opportunities among growth stocks can land in your lap when the stock price is low, but the underlying business is seeing rapid growth. Here are two red growth stocks that fit this criteria that should make great purchases for your portfolio in 2026.
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One of the fastest growing technology companies in the world 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 with its integrated payment tools and online shopping portal.
Last quarter, the company reported another round of impressive growth. Total revenue grew 47% year-over-year in constant currency, reaching more than $25 billion in the full year 2025. Commercial revenue grew by 40%, while fintech revenue grew by 51% year-on-year, underscoring how these two product categories reinforce each other in countries like Argentina, which are experiencing economic recovery after a period of inflation.
Long-term, there is great opportunity for MercadoLibre to grow both sides of its business. E-commerce penetration is much lower in Latin America than in more developed countries, which gives businesses a big runway to keep growing. Wall Street is upset that an investment is being made that will sacrifice profits in the short term, but will lead to a bigger business for MercadoLibre a decade from now.
A second red growth stock has been hit hard by the market: Wix.com (NASDAQ: WIX). Wix is a website builder caught in the software stock meltdown over fears of artificial intelligence (AI) disruption.
Investors believe that Wix will be replaced by an AI coding agent that will create human websites themselves. It’s hard to believe this will be the case, given Wix’s current business with customers. First, Wix is already a platform that allows you to build a website without coding, which is what AI will conceptually replace. Second, Wix’s customers are individual contractors and small businesses, such as restaurants, that aren’t directly looking to add sophisticated software tools on a daily basis.
