Hedge Fund WCM Dumped MercadoLibre Stock Worth $940 Million. Here's What That Means for Investors.
Key Points
WCM sold 487,291 shares of MercadoLibre with an estimated trade size of ~$940.00 million based on the quarterly average price.
The transaction represented a 2.15% change in reportable 13F assets under management (AUM).
Post-trade holding is 270 shares valued at $437,184.
The position, previously 2% of fund AUM, now accounts for 0.0010% and is outside the fund's top five holdings.
- 10 stocks we like better than MercadoLibre ›
What happened
According to a Securities and Exchange Commission (SEC) filing dated May 7, 2026, WCM Investment Management, LLC reduced its holding in MercadoLibre (NASDAQ:MELI) by 487,291 shares in the first quarter.
The estimated value of the shares sold was $940 million, based on the average closing price during the filing quarter. At quarter-end, the remaining stake was 270 shares valued at $437,184. The net position value declined by $984.87 million over the period, reflecting both trading activity and stock price movement.
What else to know
- This move reduces MercadoLibre to 0.0010% of WCM's reportable 13F AUM as of March 31, 2026.
- Top holdings after the filing:
- NYSE:TSM: $2.95 billion (6.7% of AUM)
- NYSE:SE: $2.64 billion (6.0% of AUM)
- NASDAQ:ASML: $1.91 billion (4.4% of AUM)
- NASDAQ:APP: $1.86 billion (4.2% of AUM)
- NYSE:PM: $1.78 billion (4.1% of AUM)
- As of May 6, 2026, MercadoLibre shares were priced at $1,841.14, down 17.4% over the past year, underperforming the S&P 500 by 48.76 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close May 6, 2026) | $1,841.14 |
| Market capitalization | $93.84 billion |
| Revenue (TTM) | $28.89 billion |
| Net income (TTM) | $2.00 billion |
Company snapshot
- MercadoLibre offers a comprehensive suite of e-commerce, fintech, logistics, classifieds, advertising, and digital storefront solutions across Latin America, including Mercado Libre Marketplace, Mercado Pago, Mercado Envios, and related platforms.
- It generates revenue primarily through transaction fees, payment processing, advertising services, logistics solutions, and financial products such as lending and investment tools integrated into its ecosystem.
- The company serves businesses, merchants, and individual consumers in Latin America, targeting a broad market spanning online retail, financial services, and digital commerce infrastructure.
MercadoLibre is a leading e-commerce and fintech platform in Latin America, leveraging a diversified digital ecosystem to drive growth at scale. The company integrates marketplace, payments, logistics, and financial solutions, enabling seamless transactions for millions of users.
What this transaction means for investors
WCM Investment Management’s sale of MercadoLibre stock in the first quarter is a noteworthy event. The hedge fund sold a massive portion of its holdings, leaving just 270 shares after the transaction. This suggests WCM is bearish towards MercadoLibre to the point of nearly exiting the stock.
WCM’s sale came at a time when the technology sector was experiencing tremendous volatility as investors soured on tech businesses for their rampant spending on artificial intelligence. This may have contributed to WCM’s decision to dispose of MercadoLibre shares in Q1.
After all, MercadoLibre has boosted its capital expenditures by a significant amount. It ended 2025 with capex of $1.3 billion compared to $860 million in 2024.
That said, the company is going strong. Its 2025 sales totaled $28.9 billion, up from the prior year’s $20.8 billion. I had the pleasure of meeting members of MercadoLibre’s executive leadership years ago, and I found them to be a visionary team. Their decision to make these capex investments speaks to their ongoing desire to maintain MercadoLibre’s long-term growth in the face of AI.
With its stock price well off the 52-week high of $2,645.22, now may be a good time to pick up shares.
Should you buy stock in MercadoLibre right now?
Before you buy stock in MercadoLibre, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and MercadoLibre wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $475,926!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,296,608!*
Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 205% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 8, 2026.
Robert Izquierdo has positions in ASML and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends ASML, MercadoLibre, Sea Limited, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Philip Morris International. The Motley Fool has a disclosure policy.
Recommended Articles
