5 Best Digital Payments Stocks To Buy Now

4. MercadoLibre, Inc. (NASDAQ:MELI)

Number of Hedge Fund Holders: 81

MercadoLibre, Inc. (NASDAQ:MELI) operates online commerce platforms in Latin America. It offers the Mercado Pago FinTech platform, a financial technology platform that facilitates transactions at its marketplaces, allowing its users to send and receive payments online, as well as transfer money through websites or apps. MercadoLibre, Inc. (NASDAQ:MELI) is one of the best digital money stocks to monitor. 

On November 3, Citi analyst Joao Pedro Soares maintained a Buy rating on MercadoLibre, Inc. (NASDAQ:MELI) but lowered the price target on MercadoLibre to $1,050 from $1,150 ahead of the Q3 results. The analyst continues to see MercadoLibre as the “best vehicle to be positioned in secular e-commerce growth” in Latin America. His only concern is the rising competition with Amazon in the long-run.

According to Insider Monkey’s Q3 data, 81 hedge funds were bullish on MercadoLibre, Inc. (NASDAQ:MELI), compared to 68 funds in the earlier quarter. David Blood and Al Gore’s Generation Investment Management is the largest stakeholder of the company, with 683,206 shares worth $565.5 million. 

SaltLight Capital made the following comment about MercadoLibre, Inc. (NASDAQ:MELI) in its Q3 2022 investor letter:

“Despite the economic slowdown in developed markets, our Latin American investment in MercadoLibre, Inc. (NASDAQ:MELI) had another outstanding third quarter growing revenues by 61% on a USD FX-neutral basis (GMV +32% FXN). Despite this strong growth, it also managed to expand operating profit margins to 11% (compare this to Amazon which is struggling to make a profit in its retail business).

LatAm’s e-commerce penetration is still very low compared to Asia and developed markets. MELI is mostly a marketplace but has also adopted models from elsewhere. In the recent past, it has built 3rd party seller infrastructure that has made Amazon so successful, and it is also heavily investing in a mobile based fintech infrastructure very similar to ANT Group in China. After only launching a couple of quarters ago, their advertising business is already at 1.3% of Gross Merchandise Value.”