MercadoLibre (MELI) Slid in Q3 Despite Reporting Strong Results

In its third-quarter 2025 capitalist letter, Baron Fifth Avenue Growth Fund highlighted stocks specified arsenic MercadoLibre, Inc. (NASDAQ:MELI). MercadoLibre, Inc. (NASDAQ:MELI) is an online commerce level that operates Mercado Libre Marketplace and Mercado Pago FinTech platforms. The one-month instrumentality of MercadoLibre, Inc. (NASDAQ:MELI) was -10.46%, and its shares gained 7.00% of their worth implicit the past 52 weeks. On December 01, 2025, MercadoLibre, Inc. (NASDAQ:MELI) banal closed astatine $2,064.55 per share, with a marketplace capitalization of $104.667 billion.

Baron Fifth Avenue Growth Fund stated the pursuing regarding MercadoLibre, Inc. (NASDAQ:MELI) successful its 3rd 4th 2025 capitalist letter:

"MercadoLibre, Inc. (NASDAQ:MELI), the starring e-commerce marketplace crossed Latin America, detracted from show arsenic shares declined 10.6% owed to macro and competitory pressures and contempt beardown quarterly results crossed GMV – up 21% year-on-year, full payments measurement – up 39%, and revenues – up 34%. On the macro side, the crisp sell-off successful Argentine assets weighed heavy connected the shares fixed that Argentina represents astir 20% of MercadoLibre’s revenues and 40% of nonstop radical contribution. The Argentine business, which had been a root of caller maturation upside and upward forecast revisions, present faces imaginable downside arsenic user assurance and currency stableness person deteriorated. At the aforesaid time, Amazon, 1 of MercadoLibre’s largest competitors successful the region, announced caller promotional rates for sellers successful Brazil, reinforcing concerns astir intensifying contention successful e-commerce. While these factors drove near-term pressure, we support condemnation successful MercadoLibre’s semipermanent opportunity: the institution remains uniquely positioned to seizure a ample stock of Latin America’s underpenetrated e-commerce and fintech markets, with scale, marque trust, and a almighty ecosystem that proceed to supply important competitory advantages."

MercadoLibre, Inc. (NASDAQ:MELI) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 109 hedge money portfolios held MercadoLibre, Inc. (NASDAQ:MELI) astatine the extremity of the 3rd quarter, which was 116 successful the erstwhile quarter. In Q3 2025, MercadoLibre, Inc. (NASDAQ:MELI) reported 39% year-on-year growth. While we admit the imaginable of MercadoLibre, Inc. (NASDAQ:MELI) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.