Why a Fund Made a $17 Million Bet on MercadoLibre Despite a 35% Stock Drop

Moneda S.A. Administradora General de Fondos disclosed a buy of 8,653 MercadoLibre shares, totaling an estimated $16.69 million, according to its May 15, 2026 SEC filing. The quarter-end position now comprises 24,151 shares valued at about $41.94 million, representing 34.2% of Moneda's 13F assets and making MercadoLibre its largest disclosed holding. MercadoLibre operates an integrated e-commerce and fintech ecosystem across Latin America, including Mercado Pago, Mercado Envios, and related services. The stock traded around $1,607.37 on May 14, 2026, down 35% over the prior year, underperforming the S&P 500's roughly 28% gain.

MercadoLibre delivered momentum in the quarter: first-quarter revenue and financial income rose 49% year over year to $8.8 billion, gross merchandise volume climbed 42% to $19 billion, and total payment volume jumped 50% to $87.2 billion. Fintech monthly active users reached 83 million, up 29% from a year earlier. Management acknowledged profitability took a back seat as investments in logistics, credit cards, fulfillment, AI, and cross-border commerce continued. Executives emphasize that Latin America's digital economy remains in early stages, suggesting substantial long-run opportunity and potential for market-share gains.