We study several properties and applications of the ultrapower M U of a metric space M . We prove that the Lipschitz-free space F (M U ) is finitely representable in F (M ). We also characterize the metric spaces that are finitely Lipschitz representable in a Banach space as those that biLipschitz embed into an ultrapower of the Banach space. Thanks to this link, we obtain that if M is finitely Lipschitz representable in a Banach space X, then F (M ) is finitely representable in F (X). We apply these results to the study of cotype in Lipschitz-free spaces and the stability of Lipschitz-free spaces and spaces of Lipschitz functions under ultraproducts.