Up 7,400% All Time, Is It Too Late to Buy MercadoLibre Stock?

MercadoLibre (NASDAQ: MELI) stock has been very good to investors since it went public in 2007. It has gained 7,400% over the past 18 years, thoroughly beating the S&P 500.

MELI Total Return Level data by YCharts

Given such incredible performance, is it too late to buy the stock? Not necessarily.

Generating the shift to e-commerce

MercadoLibre isn't a household name in the U.S. because it operates in Latin America. It began as an online marketplace similar to Amazon, and these days it also has a growing fintech business. Both of these segments are growing quickly, and the company is also highly profitable.

There's plenty of momentum as the company works on shifting retail trends in its region, which is behind the U.S. in e-commerce penetration. Gross merchandise volume increased 35% year over year in the third quarter (currency neutral), driving a 49% increase in revenue.

Image source: Getty Images.

MercadoLibre continues to activate millions of new customers who are trying out its marketplace for the first time, and as they get comfortable with it, these customers tend to increase purchase frequency and average spend. In the 2025 third quarter, unique active buyers increased 26% year over year.

Management has been improving its value proposition to attract new buyers, and it lowered its free shipping threshold in Brazil from 79 Brazilian reals to 19 Brazilian reals. This resuklted in the largest number of new active buyers ever in that region in the third quarter. Each of these customers provides years of long-term growth as they increase purchase frequency and spend.

Massive long-term opportunities in financial services

MercadoLibre's fintech business started as a digital wallet for the company's underbanked population to access the marketplace, but has expanded into a full financial services app offering credit products, savings accounts, and more. This is another area where the region is behind the U.S. and where there's a long growth runway.

In the third quarter, total payment volume increased 54% year over year, and monthly active users were up 29%. Like the e-commerce business, not only are there opportunities as it attracts new members, but the opportunities widen as the company monetizes its user base. For example, in Brazil, where MercadoLibre is already a huge presence, it's working on principality, and its share of wallet is increasing among low-risk users.

It's also demonstrating this through increases in assets under management, which were up 89% year over year in the quarter, and the credit portfolio, which grew 83%.

It's not too late to buy MercadoLibre stock

MercadoLibre stock isn't likely to deliver another 7,400% in gains at its current levels, but it's likely to report superlative performance and outperform the market. It isn't too late to buy this top stock and benefit from years of potential growth.

Jennifer Saibil has positions in MercadoLibre. The Motley Fool has positions in and recommends Amazon and MercadoLibre. The Motley Fool has a disclosure policy.