Is Now the Time to Buy MercadoLibre Stock After Hedge Fund Linonia Initiated a Position Worth Over $225 Million?
Key Points
Linonia Partnership LP acquired 130,261 shares of MercadoLibre in the first quarter; estimated trade value is $251.28 million (based on quarterly average price).
The transaction represents a new stake in MercadoLibre stock.
This new position represents 4.18% of reportable AUM, which places it outside the fund's top five holdings.
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What happened
According to a May 15, 2026, SEC filing, Linonia Partnership LP initiated a new position in MercadoLibre (NASDAQ:MELI) during the first quarter, purchasing 130,261 shares.
The estimated value of the trade is $251.28 million, calculated using the mean unadjusted close for the quarter. At quarter-end, the stake was valued at $225.22 million, a figure that incorporates both purchasing activity and share price fluctuations.
What else to know
- This new position in MercadoLibre accounts for 4.18% of Linonia Partnership’s $5.38 billion in reportable U.S. equity assets as of March 31, 2026.
- Top five holdings after the filing:
- NYSE:GWRE: $1.14 billion (21.3% of AUM)
- NYSE:VEEV: $865.06 million (16.1% of AUM)
- NYSE:NYT: $756.42 million (14.1% of AUM)
- NYSE:SGI: $649.17 million (12.1% of AUM)
- NASDAQ:LLYVK: $582.79 million (10.8% of AUM)
- As of May 14, 2026, MercadoLibre shares were priced at $1,607.37, down 37.3% over the past year, underperforming the S&P 500 by 64.61 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close 2026-05-14) | $1,607.37 |
| Market Cap | $78.85 billion |
| Revenue (TTM) | $31.80 billion |
| Net Income (TTM) | $1.92 billion |
Company Snapshot
- MercadoLibre offers an integrated suite of e-commerce, fintech, logistics, classifieds, advertising, and digital storefront solutions across Latin America, including Mercado Libre Marketplace and Mercado Pago.
- It generates revenue primarily through transaction fees, fintech services, advertising, credit products, and value-added logistics and fulfillment for merchants and consumers.
- The company targets businesses, merchants, and individual consumers in Latin America, serving both online sellers and buyers seeking digital commerce and financial services.
MercadoLibre, Inc. is a leading e-commerce and fintech platform in Latin America, operating at scale with over 84,000 employees and a diversified portfolio of digital services.
The company leverages its marketplace, payments, and logistics infrastructure to drive growth and deepen customer engagement across multiple verticals. Its integrated ecosystem and regional expertise provide a competitive advantage in capturing the expanding digital economy of Latin America.
What this transaction means for investors
New York-based Linonia Partnership’s purchase of MercadoLibre shares in the first quarter is a noteworthy event. It represents a new position, and since the hedge fund had only 14 holdings in Q1, its selection of MercadoLibre to be in this finite circle suggests Linonia is bullish on the stock.
The move makes sense since MercadoLibre shares have fallen in 2026, eventually reaching a 52-week low of $1,495 on May 13. Investors have soured on the company because it is strategically allowing margins to shrink as it invests in new opportunities such as artificial intelligence and cross-border trade with China.
Even so, MercadoLibre’s business is booming. The company exited Q1 with $8.8 billion in revenue, which represents jaw-dropping 49% year-over-year growth.
The fall in its share price has led to MercadoLibre’s valuation reaching a low point over the past year as demonstrated by its price-to-sales ratio of less than three. This suggests now is a good time to pick up shares in this successful e-commerce giant.
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MercadoLibre, The New York Times Co., and Veeva Systems. The Motley Fool has a disclosure policy.
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