We recently published a list of Top 10 Stocks to Buy According to Think Investments. In this article, we are going to take a look at where MercadoLibre, Inc. (NASDAQ:MELI) stands against other top stocks to buy according to Think Investments.

Think Investments is an investment firm based in San Francisco, with additional offices in Singapore and India. The firm focuses on long-term investments in both public and private companies, emphasizing creative research to identify high-potential opportunities. Specializing in technology-driven early-stage businesses, Think Investments partners with its strong management teams to build differentiated companies that generate high returns on invested capital. With a deep understanding of emerging markets and global technology, the firm is well-positioned to navigate complex investment landscapes.

Founded in 2013 by Shashin Shah, Think Investments has established itself as a key player in global markets. The firm has over $1 billion invested in Indian companies operating in the financial services, healthcare, technology, and consumer sectors. Think’s investment strategy is guided by Shah’s extensive experience in global equity markets, ensuring a disciplined approach to capital allocation. The firm’s commitment to long-term value creation has made it a trusted partner for relatively young companies looking to scale efficiently.

Shashin Shah, Founder and Managing Partner, brings decades of expertise in global investing. Before launching Think Investments, he was a partner at Valiant Capital, where he managed multiple international markets, including India, the U.S., Europe, Asia, the Middle East, and North Africa. Shah also worked at Blue Ridge Capital and Morgan Stanley, further honing his investing skills. His academic background includes a bachelor’s degree in computer engineering from the University of Mumbai and an MBA from the University of Texas, equipping him with a strong analytical and financial foundation.

In addition to leading Think Investments, Shah plays an active role in shaping the growth of innovative companies. He currently serves on the boards of Chaayos, a tea café chain, and Dream11, India’s leading fantasy sports platform. His leadership and strategic insights continue to drive Think’s success, solidifying its reputation as a premier investment firm in global markets.

As of its latest filing for the fourth quarter of 2024, Think Investments reported managing approximately $454.51 million in 13F securities, of which the firm’s top ten holdings account for 80.57%.

Our Methodology

The stocks discussed below were picked from Think Investments’ Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

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.”

Overall, MELI ranks 7th on our list of top stocks to buy according to Think Investments. While we acknowledge the potential of MELI, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MELI but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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