15 High Growth Companies Hedge Funds Are Buying

Page 9 of 14

6. MercadoLibre, Inc. (NASDAQ:MELI)

Number of Hedge Fund Holders: 96

Average 5-Year Revenue Growth: 56.60%

MercadoLibre, Inc. (NASDAQ:MELI) is an e-commerce and fintech company in Latin America, operating mainly in Brazil, Mexico, and Argentina. It runs an online marketplace, a digital payments platform, and offers tools for investing, lending, shipping, online ads, and lets users develop online stores through Mercado Shops. It is one of the best high growth stocks to consider.

On April 21, BTIG analysts maintained a Buy rating on MercadoLibre, Inc. (NASDAQ:MELI) with a $2,500 price target. Analysts remain optimistic heading into its Q1 2025 earnings report. Despite global uncertainty, Latin America’s economy has shown resilience, and retail spending in Brazil grew 3.5% in March. Credit trends also remain stable, with only a slight uptick in non-performing loans. Overall, analysts see solid momentum and remain bullish on the stock.

MercadoLibre, Inc. (NASDAQ:MELI)’s revenue in Q4 2024 rose 37% year-over-year to $6.1 billion, and the company reported an operating income of $820 million. MELI reached 67 million unique buyers in Q4, helping the company surpass 100 million buyers for the first time. Gross merchandise value came in at $14.5 billion for the quarter, with Brazil and Mexico seeing solid growth. Advertising revenue grew by 41%, and Mercado Pago saw significant growth with 61 million active users and a $6.6 billion credit portfolio. The company remains optimistic about the future, with plans to strengthen its position as Latin America’s leading digital bank.

Among the hedge funds tracked by Insider Monkey in Q4 2024, 96 funds were bullish on MercadoLibre, Inc. (NASDAQ:MELI), compared to 87 funds in the preceding quarter. Arrowstreet Capital was the biggest stakeholder of the company, with 545,292 shares worth $927.2 million.

Page 9 of 14