MercadoLibre (MELI) Fell in Q3 Due to Competition Concerns

Janus Henderson Investors, an investment management company, released its “Forty Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities surged in the third quarter on positive corporate earnings news and hopes for Federal Reserve (Fed) rate cuts. The fund returned 8.38% in the third quarter, compared to the Russell 1000 Growth Index’s 10.51% return. Stock selection in the healthcare sector contributed to the relative performance of the fund in the quarter, while stock selection in the consumer discretionary sector detracted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Janus Henderson Forty Fund highlighted stocks such as MercadoLibre, Inc. (NASDAQ:MELI). MercadoLibre, Inc. (NASDAQ:MELI) is an online commerce platform that operates Mercado Libre Marketplace and Mercado Pago FinTech platforms. The one-month return of MercadoLibre, Inc. (NASDAQ:MELI) was -1.42%, and its shares gained 10.74% of their value over the last 52 weeks. On December 01, 2025, MercadoLibre, Inc. (NASDAQ:MELI) stock closed at $2,019.81 per share, with a market capitalization of $102.399 billion.

Janus Henderson Forty Fund stated the following regarding MercadoLibre, Inc. (NASDAQ:MELI) in its third quarter 2025 investor letter:

“MercadoLibre, Inc. (NASDAQ:MELI), another detractor, is a leading online retailer and financial technology company in Latin America. The company has recently faced increased competition from other online retailers such as Amazon and Shopee. Investors worried about the impact of the increased competition on MercadoLibre’s margins and profitability, and the stock declined. We continue to believe MercadoLibre is the dominant operator in a Latin American region where e commerce and financial technology are underpenetrated. We maintained our position.”

Is MercadoLibre, Inc. (MELI) Among The Aggressive Stocks Picked by Hedge Funds?

MercadoLibre, Inc. (NASDAQ:MELI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 109 hedge fund portfolios held MercadoLibre, Inc. (NASDAQ:MELI) at the end of the third quarter, which was 116 in the previous quarter. In Q3 2025, MercadoLibre, Inc. (NASDAQ:MELI) reported 39% year-on-year growth. While we acknowledge the risk and potential of MercadoLibre, Inc. (NASDAQ:MELI) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MercadoLibre, Inc. (NASDAQ:MELI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered MercadoLibre, Inc. (NASDAQ:MELI) and shared Baron Fifth Avenue Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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