Why One Brazil Fund Opened an $11 Million Position in MercadoLibre Despite a Steep One-Year Stock Drop

On May 11, 2026, Brazil-based Investidor Profissional Gestao de Recursos disclosed a new position in MercadoLibre (NASDAQ:MELI), buying 5,881 shares in a trade estimated at $11.34 million based on quarterly average pricing.

According to a SEC filing dated May 11, 2026, Investidor Profissional Gestao de Recursos initiated a new position in MercadoLibre during the first quarter by acquiring 5,881 shares. The estimated transaction value was $11.34 million, calculated using the average unadjusted closing price for the quarter. At quarter-end, the position was valued at $10.17 million, a figure that reflects both the purchase and subsequent price movement.

This was a new position for the fund and accounted for 3.32% of its 13F reportable assets as of March 31, 2026.

Top holdings after the filing include:

NYSE:MA: $18.42 million (11.8% of AUM)

NASDAQ:META: $17.34 million (11.1% of AUM)

NASDAQ:BKNG: $15.43 million (9.9% of AUM)

NASDAQ:MSFT: $15.43 million (9.9% of AUM)

NYSE:V: $14.51 million (9.3% of AUM)

As of May 11, 2026, shares of MercadoLibre were priced at $1,557.30, down 37% over the past year and underperforming the S&P 500 by 67 percentage points.

Metric

Value

Price (as of market close May 11, 2026)

$1,557.30

Market capitalization

$80 billion

Revenue (TTM)

$28.9 billion

Net income (TTM)

$2 billion

MercadoLibre offers online commerce platforms, fintech solutions, logistics, advertising, and digital storefront services across Latin America.

The firm generates revenue through marketplace transaction fees, fintech payments, credit products, logistics services, and advertising placements.

It serves businesses, merchants, and individual consumers primarily in Latin American markets.

MercadoLibre is a leading e-commerce and fintech provider in Latin America. The company leverages its integrated marketplace, payment, and logistics platforms to enable seamless digital commerce and financial transactions. Its broad service ecosystem and strong regional presence provide a competitive advantage in serving both merchants and consumers across diverse markets.

This purchase ultimately seems like a bet that MercadoLibre’s recent selloff has more to do with investor impatience than any real deterioration in the business. The company is still growing at rates most global tech firms would envy, but management is intentionally sacrificing margins to lock in market share across Latin America’s ecommerce and fintech markets.That strategy was on full display in the latest quarter. MercadoLibre reported revenue and financial income of $8.85 billion, up 49% year over year, while total payment volume surged 50% to $87.2 billion. Gross merchandise volume climbed 42% to $19 billion, and monthly fintech users reached 83 million.At the same time, operating income fell 20% as the company ramped spending on free shipping, fulfillment, credit cards, AI tools, and logistics infrastructure. Management made clear it views this as a once-in-a-generation opportunity to dominate digital commerce and banking across the region. That type of vision, even in the face of near-term stress, might be why Investidor Profissional leaned in last quarter.

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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Booking Holdings, Mastercard, MercadoLibre, Meta Platforms, Microsoft, and Visa. The Motley Fool has a disclosure policy.

Why One Brazil Fund Opened an $11 Million Position in MercadoLibre Despite a Steep One-Year Stock Drop was originally published by The Motley Fool