Why This $59 Million MercadoLibre Buy Follows a 12% Stock Drop

Fisher Funds Management increased its stake in MercadoLibre (NASDAQ:MELI) during the first quarter, buying 30,716 shares in a trade estimated at $59.25 million based on quarterly average prices, according to an April 16, 2026 SEC filing.

What happened

According to an SEC filing dated April 16, 2026, Fisher Funds Management acquired an additional 30,716 shares of MercadoLibre in the first quarter. The estimated transaction value, based on the average closing price for the quarter, was $59.25 million. By quarter-end, the fund’s position in MercadoLibre was valued at $61.33 million, up $51.74 million from the prior filing, reflecting both additional purchases and share price movement.

What else to know

• Fisher Funds Management LTD’s buy lifted MercadoLibre to 1.8% of its 13F assets under management.
• Top five holdings after the filing:
  • NASDAQ:MSFT: $195.14 million (5.7% of AUM)
  • NASDAQ:AMZN: $144.51 million (4.2% of AUM)
  • NASDAQ:GOOGL: $123.76 million (3.6% of AUM)
  • NASDAQ:META: $104.01 million (3.1% of AUM)
  • NASDAQ:NVDA: $99.40 million (2.9% of AUM)
• As of April 15, 2026, MercadoLibre shares were priced at $1,872.12, down 11.6% over the past year and lagging the S&P 500 by 38.0 percentage points.

Company overview

Company snapshot

• MercadoLibre offers an integrated suite of e-commerce, fintech, logistics, advertising, and digital storefront solutions across Latin America, including the Mercado Libre Marketplace, Mercado Pago, Mercado Envios, and related platforms.
• The firm generates revenue primarily through marketplace transaction fees, payment processing, credit products, logistics services, and advertising, leveraging a platform-based business model that connects merchants and consumers.
• It serves a broad customer base of businesses, individual merchants, and consumers throughout Latin America, targeting both online sellers and buyers as well as users of digital financial services.

MercadoLibre is a leading e-commerce and fintech platform in Latin America, operating at a significant scale with a diversified revenue base. The company’s integrated ecosystem of digital commerce, payments, and logistics positions it as a critical enabler of online retail and financial inclusion in the region. MercadoLibre’s strategic focus on platform expansion and technology-driven services underpins its competitive advantage in high-growth emerging markets.

What this transaction means for investors

This seems to be a strategic addition to a solid platform that's currently lagging, but still has strong fundamentals. And for long-term investors, that kind of stability is often more significant than short-term fluctuations in stock prices. When a fund decides to step in after a roughly 12% decline over the last year, especially while the S&P 500 has increased by about 35%, it tends to signal a focus on fundamentals rather than momentary market trends.

The fundamentals supporting this move are impressive. MercadoLibre reported 45% year-over-year revenue growth in Q4, totaling $8.8 billion, and also achieved a net income of $559 million. They processed a whopping $83.7 billion in total payment volume, marking over 40% growth. The gross merchandise volume nearly reached $20 billion for the quarter, driven by strong gains in Brazil, Mexico, and Argentina. On the fintech side, the company is rapidly expanding with a $12.5 billion credit portfolio and 78 million monthly active users.

To put it into perspective, this investment represents just a 1.8% position in the fund, much smaller than leading holdings like Microsoft, which stands at 5.7%. So while it’s not a game-changing bet for the portfolio, it still carries weight, and the fundamentals seem to answer why.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, MercadoLibre, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.