Here’s Why MercadoLibre (MELI)’s Shares Slid in the Second Quarter

Harding Loevner, an asset management company, released its “Global Equity” second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned -20.63% net of fees compared to a return of -15.53% for the MSCI All Country World Index and a return of -16.05% for the MSCI World Index. Poor stocks among expensive, fast-growing companies that continued to see selling pressure affected the fund’s performance. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Harding Loevner discussed stocks like MercadoLibre, Inc. (NASDAQ:MELI) in the second quarter investor letter. Headquartered in Montevideo, Uruguay, MercadoLibre, Inc. (NASDAQ:MELI) is an online commerce platform. On September 26, 2022, MercadoLibre, Inc. (NASDAQ:MELI) stock closed at $799.58 per share. One-month return of MercadoLibre, Inc. (NASDAQ:MELI) was -8.64% and its shares lost 54.78% of their value over the last 52 weeks. MercadoLibre, Inc. (NASDAQ:MELI) has a market capitalization of $40.249 billion.

Here is what Harding Loevner specifically said about MercadoLibre, Inc. (NASDAQ:MELI) in its Q2 2022 investor letter:

“Within Consumer Discretionary, South American e-commerce company MercadoLibre, Inc. (NASDAQ:MELI)’s shares slid due to slowing growth in the region and higher financing costs which, together with aggressive hiring and capacity expansion, squeezed the firm’s bottom line.”

MercadoLibre, Inc. (NASDAQ:MELI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios MercadoLibre, Inc. (NASDAQ:MELI) at the end of the second quarter which was 63 in the previous quarter.

We discussed MercadoLibre, Inc. (NASDAQ:MELI) in another article and shared Baron Funds’ views on the company. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

Disclosure: None. This article is originally published at Insider Monkey.