MercadoLibre (MELI) Reported Strong Quarterly Performance, Driven by Revenue Growth in Argentina

Sands Capital, an investment management company, released its “Sands Capital Technology Innovators Fund” Q1 2025 investor letter. A copy of the letter can be downloaded here. Technology Innovators focus on pioneering businesses worldwide that serve as key drivers or beneficiaries of significant long-term changes driven by technology. The fund returned -10.4% (net) in the first quarter compared to a 9.4% return for the benchmark, MSCI ACWI Info Tech and Communication Services Index. The choice of securities in the software sector was the primary factor negatively impacting relative performance. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its first-quarter 2025 investor letter, Sands Capital Technology Innovators 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 9.62%, and its shares gained 49.44% of their value over the last 52 weeks. On May 27, 2025, MercadoLibre, Inc. (NASDAQ:MELI) stock closed at $2,555.17 per share with a market capitalization of $129.54 billion.

Sands Capital Technology Innovators Fund stated the following regarding MercadoLibre, Inc. (NASDAQ:MELI) in its Q1 2025 investor letter:

“MercadoLibre, Inc. (NASDAQ:MELI) is the largest ecommerce and fintech ecosystem in Latin America by market share. The business delivered a strong fourth quarter in 2024, with operating income exceeding consensus estimates by 37 percent. This marked a significant rebound from 2024’s third quarter, when operating income fell short of expectations. The outperformance was largely driven by operations in Argentina, where 31 percent year-over-year revenue growth boosted earnings due to the region’s higher contribution margin relative to Brazil and Mexico. As of year-end, MercadoLibre served 100 million annual unique ecommerce customers and more than 60 million monthly active financial technology users.”

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

A customer using their phone to access an online commerce platform.

MercadoLibre, Inc. (NASDAQ:MELI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 108 hedge fund portfolios held MercadoLibre, Inc. (NASDAQ:MELI) at the end of the first quarter which was 96 in the previous quarter. While we acknowledge the potential of MercadoLibre, Inc. (NASDAQ:MELI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered MercadoLibre, Inc. (NASDAQ:MELI) and shared Loomis Sayles Global Growth Fund’s views on the company. Baron FinTech Fund emphasized MercadoLibre, Inc. (NASDAQ:MELI) in its Q1 2025 investor letter, noting that the stock rebounded strongly and reaffirmed its growth trajectory in digital commerce and banking. In addition, please check out our hedge fund investor letters Q1 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.