Key Points
MercadoLibre may want its stock to trade at prices that are comparable to its share prices on other exchanges.
Its rapid revenue growth is unlikely to stop anytime soon.
After a long wait, Booking Holdings completed its first stock split in decades on April 6. The company, which had once engaged in a 1-for-6 reverse split to avoid being delisted from the Nasdaq, had seen its stock peak at over $5,800 per share, so one could argue its recent 25-for-1 split was long overdue.
Still, Booking Holdings is not the only consumer discretionary stock that has reached a high nominal price. Knowing that, I believe that one company that has risen by almost 6,430% since its initial public offering could be next.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
The (possible) next stock split
The next consumer stock overdue for a stock split is MercadoLibre (NASDAQ: MELI). In terms of nominal price, it is now the eighth-most expensive stock on U.S. markets today.
Admittedly, MercadoLibre has never instituted a stock split and has given investors no indication it plans such a move, and splits do not directly change the value of shareholders' positions. Other investors may wonder why I'm not singling out AutoZone, since it trades at nearly twice the nominal price per share.
MercadoLibre may stand out due to a factor U.S. investors usually overlook -- its presence on the stock exchanges of its largest markets.
Interestingly, on Mexico's stock exchange, the Bolsa, it's trading for around 32,000 pesos per share, roughly equivalent to the U.S. price. However, its average volume is only around 1,200 shares, an alarmingly low level of liquidity. That is also far below the 549,000-share average daily volume on the Nasdaq.
This is not the case in Argentina, where it sells for less than 23,000 Argentine pesos (about $16.50) per share, or Brazil, where it sells for about 77 reais ($15.40) per share. Considering the average daily share volumes of around 490,000 in Argentina and over 1.3 million in Brazil, it might make sense for the company to more closely align its share prices across nations.
MercadoLibre's future growth
Moreover, MercadoLibre stock is on sale -- down by around 30% from its 52-week high. Its share price is more likely to rise than fall over time.
This is because of the company's revenue growth. It has succeeded by taking Latin America's economic and political challenges and turning them into business opportunities.
When its cash-based customers could not buy online, it formed fintech Mercado Pago to create financial products to serve these customers. It later extended these services to customers not shopping on MercadoLibre, making it one of the most prominent Latin American fintech companies.
Also, when its sellers needed fulfillment and logistics services, it formed Mercado Envios. This brought same-day and next-day delivery to Latin America. Consequently, it generated $28.9 billion in revenue in 2025, a 39% increase from year-ago levels. Unfortunately, intensifying e-commerce competition and a rise in its provision for doubtful accounts (past-due debt that it's not expecting will be repaid) pressured the bottom line, and its net income rose by only 5% to $2 billion.
Still, it has kept prices low to outcompete its e-commerce peers. Also, it has instituted loan limits and AI credit rating strategies to minimize underperforming loans, making it likely its profit growth will resume.
Analysts forecast a 34% revenue increase in 2026. That would be modestly slower than 2025's growth, but still rapid.
The stock's valuation has also become more attractive. Its P/E ratio is now 47. While that may seem high, investors should remember that Amazon routinely traded at a P/E above 50 (and often above 100) during its growth phase. It's likely that MercadoLibre, too, can justify this valuation.
Thus, if it reaccelerates its profit growth, that multiple could fall, likely pushing the stock price higher and enhancing the case for a split.
MercadoLibre as a stock-split candidate
MercadoLibre's stock price makes it a prime candidate as the next major stock split in the consumer space.
Many other companies have split shares when their stock prices reached comparable prices to MercadoLibre's price today. Also, with the stock trading at a similar price in Mexico, its lower liquidity may be hampering stock trading in that country.
Moreover, with 39% revenue growth in 2025 and a 34% increase forecast this year, the rapid increases are likely to continue for the foreseeable future.
Ultimately, stock splits do not change the underlying value of companies. Still, if more small investors can buy whole shares, it could follow in Booking Holdings' footsteps, and that extra trading activity could help lift MercadoLibre stock.
Should you buy stock in MercadoLibre right now?
Before you buy stock in MercadoLibre, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and MercadoLibre wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $498,522!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,276,807!*
Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 200% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 27, 2026.
Will Healy has positions in MercadoLibre. The Motley Fool has positions in and recommends Amazon, Booking Holdings, and MercadoLibre. The Motley Fool has a disclosure policy.
