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MercadoLibre, Inc is an internet retail business with stocks listed in the US. MercadoLibre shares (MELI) are listed on the NASDAQ and all prices are listed in US Dollars. Its last market close was US$1570.78 – an increase of 6.84% over the previous week. Here's how to invest if you're based in Australia.
How to buy shares in MercadoLibre
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for MercadoLibre. Find the share by name or ticker symbol: MELI. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until MercadoLibre reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$1570.78, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of MercadoLibre, depending on your broker.
- Check in on your investment. Congratulations, you own a part of MercadoLibre. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- MercadoLibre key stats
- Compare share trading platforms
- Is MercadoLibre stock a buy or sell?
- MercadoLibre performance over time
- Can I short MercadoLibre shares?
- Are MercadoLibre shares over-valued?
- MercadoLibre's financials
- How volatile are MercadoLibre shares?
- Does MercadoLibre pay a dividend?
- Other common questions
MercadoLibre share priceUse our graph to track the performance of MELI stocks over time.
MercadoLibre shares at a glance
|52-week range||US$517.01 - US$2020|
|50-day moving average||US$1557.6865|
|200-day moving average||US$1520.4753|
|Dividend yield||US$0.15 (0.97%)|
|Earnings per share (TTM)||US$0.191|
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Is it a good time to buy MercadoLibre stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
MercadoLibre price performance over time
|1 week (2021-04-07)||1.87%|
|1 month (2021-03-12)||1.33%|
|3 months (2021-01-12)||-13.22%|
|6 months (2020-10-12)||29.20%|
|2 years (2019-04-12)||211.34%|
|3 years (2018-04-12)||379.77%|
|5 years (2016-04-12)||1,209.31%|
Is MercadoLibre under- or over-valued?
Valuing MercadoLibre stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of MercadoLibre's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
MercadoLibre's P/E ratio
MercadoLibre's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 2897x. In other words, MercadoLibre shares trade at around 2897x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
MercadoLibre's PEG ratio
MercadoLibre's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.28. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into MercadoLibre's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
MercadoLibre's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$232.7 million (£0.0 million).
The EBITDA is a measure of a MercadoLibre's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||US$4 billion|
|Operating margin TTM||3.21%|
|Gross profit TTM||US$2 billion|
|Return on assets TTM||1.41%|
|Return on equity TTM||-0.04%|
|Market capitalisation||US$78.5 billion|
TTM: trailing 12 months
Shorting MercadoLibre shares
There are currently 1.3 million MercadoLibre shares held short by investors – that's known as MercadoLibre's "short interest". This figure is 16.2% up from 1.1 million last month.
There are a few different ways that this level of interest in shorting MercadoLibre shares can be evaluated.
MercadoLibre's "short interest ratio" (SIR)
MercadoLibre's "short interest ratio" (SIR) is the quantity of MercadoLibre shares currently shorted divided by the average quantity of MercadoLibre shares traded daily (recently around 740644.94382022). MercadoLibre's SIR currently stands at 1.78. In other words for every 100,000 MercadoLibre shares traded daily on the market, roughly 1780 shares are currently held short.
However MercadoLibre's short interest can also be evaluated against the total number of MercadoLibre shares, or, against the total number of tradable MercadoLibre shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case MercadoLibre's short interest could be expressed as 0.03% of the outstanding shares (for every 100,000 MercadoLibre shares in existence, roughly 30 shares are currently held short) or 0.0314% of the tradable shares (for every 100,000 tradable MercadoLibre shares, roughly 31 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against MercadoLibre.
Find out more about how you can short MercadoLibre stock.
MercadoLibre share dividends
We're not expecting MercadoLibre to pay a dividend over the next 12 months.
MercadoLibre share price volatility
Over the last 12 months, MercadoLibre's shares have ranged in value from as little as US$517.01 up to US$2020. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while MercadoLibre's is 1.4837. This would suggest that MercadoLibre's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
MercadoLibre, Inc. operates online commerce platforms in Latin America. It operates Mercado Libre Marketplace, an automated online commerce platform that enables businesses, merchants, and individuals to list merchandise and conduct sales and purchases online; and Mercado Pago FinTech, a financial technology solution platform, which facilitates transactions on and off its marketplaces by providing a mechanism that allows its users to send and receive payments online, as well as allows users to transfer money via their websites and mobile apps. The company also offers Mercado Fondo that allows users to invest funds deposited in their Mercado Pago accounts; and Mercado Credito that extends loans to certain merchants and consumers. In addition, it provides Mercado Envios logistics solution that enables sellers on its platform to utilize third-party carriers and other logistics service providers, as well as fulfillment and warehousing services for sellers. Further, the company provides Mercado Libre Classifieds, an online classified listing service, where users can list and purchase motor vehicles, real estate, and services. Additionally, it offers Mercado Ads, an advertising platform, which enables large retailers and brands to promote their products and services on the Internet. The company also provides Mercado Shops, an online storefronts solution, that enables users to set-up, manage, and promote their own Webstores. The company was incorporated in 1999 and is headquartered in Buenos Aires, Argentina.
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