How to Invest in MercadoLibre (MELI)

How to buy MercadoLibre stock

Those who want to invest in MercadoLibre stock must take a few steps before becoming shareholders. This step-by-step guide will show you how to add the e-commerce stock to your portfolio.

1. Open your brokerage account: Log in to your brokerage account where you handle your investments.
2. Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
3. Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
4. Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
5. Submit your order: Confirm the details and submit your buy order.
6. Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

Should I invest in MercadoLibre?

Not every stock is right for all investors. With that in mind, here are some reasons why you might decide to invest in MercadoLibre:

• You understand what MercadoLibre does and how it makes money.
• You're seeking stocks with high revenue and earnings growth potential.
• Investing in MercadoLibre would help diversify your portfolio by adding an international stock.
• You don't need to invest in stocks that pay dividends.
• You're comfortable adding exposure to Latin America to your portfolio.
• You believe MercadoLibre can grow into its lofty valuation.
• You can easily afford to buy one or more shares without over-allocating to MercadoLibre (or are comfortable investing in fractional shares).

On the other hand, here are some reasons why you might decide against buying shares of MercadoLibre:

• You're not sure how MercadoLibre makes money or what it does.
• You prefer to invest in companies headquartered in the U.S.
• You're at or nearing retirement and need investments that generate income.
• You're concerned about MercadoLibre's high valuation.
• You already own several companies focused on the e-commerce and fintech sectors.
• The company's high stock price is more than you can afford with a reasonable allocation (and you'd prefer to avoid investing in fractional shares).

Is MercadoLibre profitable?

Understanding a company's profitability is a key aspect of investment research. Profits are crucial to investors because a company's stock price tends to follow its profitability over the long term. Ideally, you want to see a company that's growing its profitability or on the road to making money.

MercadoLibre was solidly profitable as of late 2025. The trailing 12 months (TTM) from early December show the e-commerce company recording nearly $2.1 billion of net income on $26.2 billion of revenue, an increase from 2024 ($1.9 billion on $20.8 billion of revenue). The company also produces lots of cash ($9.8 billion in net cash from operating activities TTM), giving it money to fund loans, invest in capital projects, repurchase shares, and strengthen its balance sheet.

The company's strong and growing profitability enables it to fund its continued expansion and create long-term value for shareholders.

Does MercadoLibre pay a dividend?

MercadoLibre didn't pay a dividend as of late 2025. The e-commerce company hasn't paid a dividend since late 2017, when it suspended its dividend to retain more cash to fund its growth. It originally initiated a dividend ($0.08 per share each quarter or $0.32 annually) in 2011. The company started paying dividends because of its confidence in its financial strength and ability to generate sustained cash flow to fund its operations.

The company could afford to reinstate a dividend. It's profitable and produces growing excess free cash, which has enabled it to strengthen its balance sheet. Its cash balance stood at $9.2 billion at the end of third quarter of 2025.

Will MercadoLibre stock split?

MercadoLibre didn't have an upcoming stock split as of late 2025. The e-commerce company has not split its stock since going public in 2007.

The company is certainly a candidate for a stock split. Its share price was around $2,100 in late 2025, which is high for many investors. Splitting its stock would make it more accessible to investors.

The bottom line on MercadoLibre

MercadoLibre is capitalizing on Latin America's economic growth by providing consumers and businesses with e-commerce and fintech solutions to enhance commerce in the region. Those catalysts should enable the company to continue growing its revenue and profits briskly, allowing it to grow value for its investors over the long term.

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