MercadoLibre (MELI) Delivered Excellent Results, Showcasing Ecosystem Strength - InvestingChannel

MercadoLibre (MELI) Delivered Excellent Results, Showcasing Ecosystem Strength

Hardman Johnston Global Advisors, an investment management company, released its “Hardman Johnston Global Equity” third quarter 2024, investor letter. A copy of the letter can be downloaded here. The portfolio slightly underperformed its benchmark index in the third quarter following a robust first half of the year. Performance was impacted by volatility, especially towards the end of the quarter. The strategy returned 4.50%, net of fees, in the quarter, compared to 6.61% for the MSCI AC World Net Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Hardman Johnston Global Equity highlighted stocks like MercadoLibre, Inc. (NASDAQ:MELI), in the third quarter 2024 investor letter. 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 -12.79%, and its shares gained 7.45% of their value over the last 52 weeks. On December 18, 2024, MercadoLibre, Inc. (NASDAQ:MELI) stock closed at $1,716.38 per share with a market capitalization of $87.016 billion.

Hardman Johnston Global Equity stated the following regarding MercadoLibre, Inc. (NASDAQ:MELI) in its Q3 2024 investor letter:

“Within Consumer Discretionary, MercadoLibre, Inc. (NASDAQ:MELI) and Prosus NV were the strongest outperformers. Latin America’s leading ecommerce platform, MercadoLibre, posted excellent second quarter results, demonstrating the effectiveness of the company’s ecosystem. Fintech and Commerce created a flywheel of growth as Total Payment Volume and Gross Merchandise Value both substantially exceed investor expectations. The company continues to improve its value proposition for customers with initiatives like a revamped loyalty platform in MELI+ and more flexible shipping offerings like Delivery Day. The improved value proposition is flowing through the company’s financials, as demonstrated by the accelerated take rate expansion for its commerce business.”

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

MercadoLibre, Inc. (NASDAQ:MELI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 87 hedge fund portfolios held MercadoLibre, Inc. (NASDAQ:MELI) at the end of the third quarter which was 84 in the previous quarter. MercadoLibre, Inc.’s (NASDAQ:MELI) net income rose by 11% year-over-year, reaching $397 million in the third 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 cheapest AI stock.

In another article, we discussed MercadoLibre, Inc. (NASDAQ:MELI) and shared stock picks of billionaire Stanley Druckenmiller. Parnassus Growth Equity Fund established a position in MercadoLibre, Inc. (NASDAQ:MELI) during Q3 2024, due to its continued revenue growth and margin expansion. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

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

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