Strong Results Lifted MercadoLibre (MELI) in Q2

Sands Capital, an investment management company, released its “Sands Capital Global Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global Growth adopts a flexible approach to identify the most promising growth companies worldwide. Global equities outperformed the MSCI ACWI in the quarter. The portfolio returned 21.7% in the quarter compared to 11.5% for the index. The second quarter results were the fourth best in both absolute and relative terms since its 2008 inception. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its second-quarter 2025 investor letter, Sands Capital Global Growth Strategy 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 2.32%, and its shares gained 13.67% of their value over the last 52 weeks. On September 16, 2025, MercadoLibre, Inc. (NASDAQ:MELI) stock closed at $2,390.14 per share, with a market capitalization of $121.174 billion.

Sands Capital Global Growth Strategy stated the following regarding MercadoLibre, Inc. (NASDAQ:MELI) in its second quarter 2025 investor letter:

“MercadoLibre, Inc. (NASDAQ:MELI) is the leading ecommerce and fintech ecosystem in Latin America by market share. The business delivered another strong quarter, surpassing consensus estimates for revenue and operating income. The outperformance was driven in part by Argentina, where contribution margins are higher than in Brazil and Mexico. Despite its scale, MercadoLibre still represents less than 5 percent of the region’s total retail market. To capture more of this opportunity, the company is investing across key strategic pillars, including marketplace, logistics, loyalty, and wallet. While these investments may pressure near-term profitability—especially in the absence of formal guidance—we expect them to reinforce MercadoLibre’s competitive advantages and support long-term growth across its ecosystem.”

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, 116 hedge fund portfolios held MercadoLibre, Inc. (NASDAQ:MELI) at the end of the second quarter, which was 108 in the previous quarter. In the second quarter of 2025, MercadoLibre, Inc. (NASDAQ:MELI) delivered another strong quarter of financial performance with revenues growing over 30% year-on-year and record income from operations of $825 million. 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 the list of unrivaled stocks of the next 3 years. In its Q2 2025 investor letter, ClearBridge Mid Cap Growth Strategy highlighted MercadoLibre, Inc. (NASDAQ:MELI), for its strong financial performance and improved operating margins. In addition, please check out our hedge fund investor letters Q2 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.