8 Best Cyclical Stocks to Buy According to Hedge Funds

5. MercadoLibre, Inc. (NASDAQ:MELI)

Number of Hedge Fund Investors: 87

MercadoLibre, Inc. (NASDAQ:MELI) is the leading e-commerce platform in Latin America, often referred to as the “Amazon of Latin America.” The company operates a marketplace for buying and selling goods, a payment solution called MercadoPago, and a logistics network, MercadoEnvios. MercadoLibre, Inc. (NASDAQ:MELI) serves millions of users across Brazil, Mexico, and Argentina.

MercadoLibre, Inc. (NASDAQ:MELI) is continuously innovating to remove barriers to online shopping and increase e-commerce penetration in Latin America, where only 15% of commerce is currently conducted online. The company has introduced several user experience (UX) enhancements, such as a new tool that suggests high-frequency categories for users to shop based on their individual profiles. This personalized approach includes shortcuts to categories on the home page, special coupons, and push notifications, all designed to increase cross-category shopping and user engagement. MercadoLibre, Inc. (NASDAQ:MELI) has also introduced augmented reality technology to enable users to see makeup products applied to their faces, addressing a significant barrier to online beauty purchases.

MercadoLibre, Inc. (NASDAQ:MELI) is making significant investments in its logistics infrastructure to enhance the user experience and drive higher market penetration. The company has recently opened six new fulfillment centers, five in Brazil and one in Mexico. This expansion is part of a broader plan to more than double the number of fulfillment centers in Brazil by the end of 2025. These smaller, city-specific facilities are designed to increase the number of cities where same-day delivery is available by 40%.