Two Tech Stocks Analysts Believe Could Rally 150% and 75% — Here's the Case for Each

Both Stocks Are Trading Well Below Record Highs Amid Market Pessimism

The Trade Desk (NASDAQ: TTD) and MercadoLibre (NASDAQ: MELI) have experienced significant pullbacks from their peaks, with The Trade Desk down 71% and MercadoLibre down 24%. Yet Wall Street’s research teams remain constructive on both companies, with some projecting eye-catching upside over the next 12 months. The enthusiasm centers on the notion that current valuations fail to reflect each company’s competitive moats and growth potential.

For The Trade Desk, the median analyst target of $60 per share suggests 53% upside from its current $39 level. BMO Capital’s Brian Pitz set the street-high target at $98, implying a 150% gain. MercadoLibre tells a different story in terms of magnitude — its median analyst price target stands at $2,842, up 42% from $1,999, though Scotiabank’s Hector Maya sees room for a 75% climb to $3,500.

MercadoLibre: The Latin American E-Commerce Juggernaut

MercadoLibre operates Latin America’s dominant online marketplace in a region where e-commerce adoption remains significantly lower than in developed markets — a substantial growth runway exists. The platform benefits from powerful network effects: as the buyer base expands, sellers gain incremental value, and vice versa. Recent quarters have shown accelerating buyer growth on the core marketplace.

The company has strategically diversified beyond pure e-commerce. It now commands over 50% of regional retail advertising spend, operates what management describes as the fastest and most comprehensive logistics network, and runs the leading fintech platforms by monthly active users in Mexico and Argentina, with the second-largest user base in Brazil.

Third-quarter financials revealed revenue growth of 39% year-over-year to $7.4 billion, marking the 27th straight quarter of growth exceeding 30%. The expansion was driven particularly by the fintech segment. Diluted earnings per share rose 6% to $8.32, a seemingly modest increase that reflects heavy near-term spending on logistics infrastructure and credit card expansion. Management views these investments as critical for sustaining long-term growth.

CFO Martin de los Santos highlighted early wins: “The recent reduction in free shipping thresholds in Brazil has already delivered strong results, with both gross merchandise volume and items sold accelerating in the quarter. We also saw strong growth in buyers, with improved conversion rates and frequency of purchase.” Looking ahead, Wall Street models 32% annual earnings growth over three years, making the current 49x earnings multiple seem justified. At 24% below record highs, the risk-reward appears compelling.

The Trade Desk: Independent Ad Tech Model Faces Temporary Headwinds

The Trade Desk runs the largest demand-side platform (DSP) on the open internet — essentially the most important software tool for buyers seeking to plan, measure, and optimize digital advertising campaigns on websites, apps, and streaming services not controlled by tech giants like Alphabet, Meta Platforms, and Amazon.

The company’s structural advantage lies in its independence. Unlike competitors who own media inventory and therefore have incentives to steer advertiser budgets toward their own channels, The Trade Desk has no such conflicts of interest. This independence translates into superior data-sharing relationships with publishers — who view The Trade Desk as neutral — and stronger measurement and targeting capabilities across the open internet. The Trade Desk particularly dominates connected TV (CTV) advertising, the industry’s fastest-expanding vertical.

The recent 71% decline stems from investor concerns about slowing growth and competitive pressure, particularly from Amazon’s push into CTV advertising. Amazon has announced partnerships bringing Netflix and Roku inventory onto its DSP and is reportedly offering discounts well below The Trade Desk’s pricing to win market share. However, a contrarian case exists: consumers allocate far more of their digital time to the open internet than to closed ecosystems controlled by a handful of corporations. The Trade Desk’s independence and superior technology should enable it to retain its leadership despite Amazon’s near-term aggression.

Trading at 45 times forward earnings, The Trade Desk’s valuation appears reasonable for a business forecast to expand earnings at 20% annually over the next three years. Analysts’ median $60 target offers 53% upside, with BMO’s $98 price target implying 150% potential appreciation from current levels. The risk-reward setup warrants consideration for patient investors with a multi-year horizon.

The Bottom Line

Both companies face near-term headwinds that have created dislocation between fundamentals and valuation. MercadoLibre’s aggressive investment phase temporarily masks operating leverage, while The Trade Desk confronts Amazon’s new competitive push in CTV. Yet the long-term competitive positioning of each — MercadoLibre’s network effects in an underpenetrated market and The Trade Desk’s independence in open internet advertising — suggests these pullbacks may represent opportunity rather than genuine deterioration.