7. MercadoLibre, Inc. (NASDAQ:MELI)
Number of Hedge Fund Holders as of Q4: 96
Think Investments’ Equity Stake: $31.12 Million
MercadoLibre, Inc. (NASDAQ:MELI) announced its financial results for the fourth quarter and year that ended December 31, 2024, and reported revenue of $6.06 billion in Q4, slightly exceeding analysts’ expectations. More impressively, the company announced earnings per share of $12.61, significantly exceeding analysts’ expectations of $8.20 per share. This strong financial performance reflects the company’s ability to drive user engagement, enhance retention, and expand its financial services.
MercadoLibre, Inc. (NASDAQ:MELI), a leading Latin American e-commerce and financial technology company, operates an expansive online marketplace that facilitates e-commerce and online auctions. Headquartered in Montevideo, Uruguay, and incorporated in Delaware, the company’s ecosystem also includes digital payment services and lending solutions, making it a key player in the digital economy across Latin America.
In a letter to shareholders, MercadoLibre, Inc. (NASDAQ:MELI) emphasized record-high retention and transaction frequency across its platform. Payments and deposits per user in its digital accounts reached new peaks, and the number of merchants utilizing its lending services also hit an all-time high. These metrics highlight the company’s sustained growth and the increasing adoption of its integrated digital ecosystem. With its marketplace and financial services flourishing, MercadoLibre remains well-positioned for continued expansion in the Latin American market.
With 18,300 shares reported in its 13F portfolio, Think Investments held a stake of over $31 million in MercadoLibre, Inc. (NASDAQ:MELI), making it seventh on the list of top stocks to buy according to the hedge fund. Hedge fund sentiment has also recently increased, as 96 hedge funds out of 1,009 in Insider Monkey’s database held stakes in MercadoLibre, Inc. (NASDAQ:MELI) with a combined stake of $6.16 billion by the end of Q4 2024, as opposed to 87 hedge funds at the end of Q3 the same year.
Hardman Johnston Global Equity stated the following regarding MercadoLibre, Inc. (NASDAQ:MELI) in its Q4 2024 investor letter:
“The top individual detractors from relative performance were MercadoLibre, Inc. (NASDAQ:MELI), IQVIA, and Universal Display Corp. MercadoLibre struggled due to a combination of fundamentals and an increasingly challenging macroeconomic environment in its primary regions, predominately Brazil. The issue within fundamentals was related to a shortfall in operating margins, as the company significantly invested across its platforms, with the addition of six new fulfillment centers aimed at regionalizing its distribution network to better serve and retain its commerce customer base and expand its credit card offering. While these investments caused a negative reaction in the stock’s share price, the company has consistently demonstrated effective capital allocation in support of its medium and long term growth. Outside of the company’s control, the outlook for inflation in Brazil deteriorated throughout the year, weighing on equities across the region. We continue to monitor the region’s macroeconomic backdrop as a key investment risk for MercadoLibre, but we view the company as a best-in-class operator that will emerge in a better position on the other side of a macro recovery.”
