MercadoLibre (MELI -0.89%) is a leading e-commerce and financial technology (fintech) platform focused on Latin America. It operates six integrated e-commerce and digital financial services platforms: Mercado Libre Marketplace, Mercado Pago Fintech platform, Mercado Envios logistics service, Mercado Ads solution, Mercado Libre Classifieds service, and Mercado Shops online storefront solution.
The company combines elements of Amazon (AMZN -0.61%), PayPal (PYPL 2.13%), and Shopify (NYSE:SHOP) while focusing on fast-growing Latin American economies. These factors have enabled MercadoLibre to grow rapidly over the years, which has helped drive strong returns for its investors.
MercadoLibre believes it's just scratching the surface of its massive and growing market opportunity. Its growth potential likely has many investors wondering how to buy MercadoLibre stock. Here's everything you need to know about how to invest in the stock of Latin America's e-commerce and fintech leader.
How to invest
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.
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- 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.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Stock
Should I invest?
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).
E-commerce
Profitability
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 early 2025. The e-commerce company recorded $1.9 billion of net income on $20.8 billion of revenue, almost double what it earned in 2023 ($987 million on $15.1 billion of revenue). The company also produces lots of cash ($7.9 billion in net cash from operating activities in 2024), 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.
Dividends
Does MercadoLibre pay a dividend?
MercadoLibre didn't pay a dividend as of early 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 $4.8 billion at the end of 2024.
ETFs
ETFs with exposure to MercadoLibre
Many people would rather be passive investors than actively pick a portfolio of stocks they have to manage. An easy way to be a passive investor is to use exchange-traded funds (ETFs) to gain exposure to a company, theme, or broader market.
According to ETF.com, 197 ETFs held 2 million shares of MercadoLibre in early 2025. The biggest holder was the Invesco QQQ Trust (NYSEMKT:QQQ), with more than 1 million shares. However, the broader market ETF focused on tracking the Nasdaq-100 index had a relatively small weighting of MercadoLibre at 0.7% of its holdings.
Investors seeking an ETF with greater exposure to MercadoLibre have a couple of options worth considering, including:
- Global X MSCI Argentina ETF (ARGT -1.06%): This ETF provides investors with exposure to a single country (Argentina). It held shares of 25 companies in early 2025, led by MercadoLibre at 23.8% of its holdings. The fund offered direct exposure to this large Latin American country for a relatively low ETF expense ratio of 0.59%.
- The Emerging Markets Internet ETF (EMQQ 0.07%): This fund invests in Internet and e-commerce companies in emerging markets. MercadoLibre was the fund's seventh-largest holding in early 2025 at 4% of its net assets. The ETF had a 0.86% expense ratio.
Stock splits
Will MercadoLibre stock split?
MercadoLibre didn't have an upcoming stock split as of early 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 $2,000 in early 2025, which is high for many investors. Splitting its stock would make it more accessible to investors.
Related investing topics
The bottom line
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.
FAQ
Investing in MercadoLibre FAQ
Should I buy MercadoLibre stock?
Deciding whether you should buy MercadoLibre stock is a personal decision. You should consider many factors before buying its stock, including its historical performance, valuation, and future growth potential.
MercadoLibre has been a great stock to invest in over the years. It has a consistent track record of growing shareholder value. As of early 2025, it had delivered a 27% annualized return since its IPO (significantly outperforming the S&P 500's almost 8% annualized return.
The company believes it can continue growing value for investors. In 2024, it grew its revenue by almost 40% while coming close to doubling its earnings. In a letter to shareholders, the company said it's "confident that the best is yet to come." It expects the investments it has made over the years to continue bearing fruit for investors, while its financial strength allows it to explore the significant growth opportunities ahead.
However, investors do have to pay up for the company's growth potential (it traded at more than 40 times forward earnings in early 2025). If it can continue growing briskly, the company should grow into its valuation and continue creating value for shareholders over the long term.
Why is MELI stock so expensive?
MercadoLibre has a high stock price (around $2,000 in early 2025) and a pricey valuation (more than 40 times forward earnings). A big reason for its expensive valuation is that investors have bid up its shares due to its strong growth profile. Its revenue surged almost 40% in 2024, while its net income almost doubled. Companies growing that quickly tend to trade at a premium valuation, which investors believe it can grow into over time.
Does MercadoLibre pay dividends?
MercadoLibre didn't pay dividends as of early 2025. The e-commerce company paid dividends between 2011 and 2017 but suspended its payout in late 2017 to retain more cash to fund its growth.
