Major Fund Bets $301 Million on MercadoLibre — Is the Stock a Buy as Shares Retreat From Record Highs?

New York City-based D1 Capital Partners initiated a new position in MercadoLibre (NASDAQ:MELI), acquiring 128,803 shares valued at approximately $301 million, according to a November 14 SEC filing.

What Happened

According to a U.S. Securities and Exchange Commission (SEC) filing dated November 14, D1 Capital Partners L.P. established a new position in MercadoLibre (NASDAQ:MELI) during the third quarter. The fund reported holding 128,803 shares valued at $301 million as of September 30. This addition brought the fund’s total reportable U.S. equity holdings to $8.7 billion across 38 positions.

What Else to Know

D1 Capital's new position in MercadoLibre now accounts for 3.5% of its 13F portfolio, placing it outside the fund’s top five holdings.

Top five holdings following the filing:

• NASDAQ: CART: $829.2 million (9.5% of AUM)
• NASDAQ: APP: $601.3 million (6.9% of AUM)
• NYSE: CLH: $567.9 million (6.5% of AUM)
• NYSE: RDDT: $465.6 million (5.4% of AUM)
• NYSE: FLS: $397.5 million (4.6% of AUM)

As of Friday, MercadoLibre shares were priced at $2,066.42, up 4% over the past year and underperforming the S&P 500, which is up 13% in the same period.

Company Overview

Company Snapshot

• MercadoLibre offers an integrated suite of e-commerce, digital payments (Mercado Pago), consumer credit, logistics (Mercado Envios), classifieds, advertising, and storefront solutions across Latin America.
• The company generates revenue primarily through transaction fees on its online marketplace, payment processing, financial services, advertising, and value-added logistics and fulfillment services.
• It serves businesses, merchants, and individual consumers in Latin America, targeting both established retailers and small enterprises seeking digital commerce solutions.

MercadoLibre, Inc. is the leading e-commerce and fintech platform in Latin America. The company leverages its integrated ecosystem—including marketplace, payments, credit, and logistics—to drive user engagement and cross-sell financial services. Its broad product suite and deep regional presence provide a significant competitive advantage in capturing the growth of digital commerce and financial inclusion across its core markets.

Foolish Take

A fresh position in MercadoLibre by a firm like D1 signals that investors with a long-term horizon may see the stock's recent trajectory as an entry point into one of Latin America’s most durable growth stories. Even after a pullback of roughly 20% from recent record highs, MercadoLibre continues to post the kind of operating momentum that long-term investors typically look for — strong top-line expansion, improving scale economics, and deepening ecosystem engagement. In the third quarter, revenue rose 39% year over year to $7.4 billion, marking its 27th straight quarter above 30% growth, while operating income increased to $724 million with a 9.8% margin. Net income, meanwhile, reached $421 million, supported by accelerating commerce and fintech adoption across all major markets.

Against this backdrop, D1 Capital’s new $301 million position — now 3.5% of its portfolio — fits the fund’s broader pattern of buying dominant platforms with multi-vertical business models. For long-term investors, MercadoLibre’s widening moat across payments, credit, logistics, and advertising remains the central thesis. If the company sustains its pace of ecosystem expansion — particularly in Brazil and Mexico — today’s valuation could certainly look attractive in hindsight.

Glossary

13F assets under management (AUM): The total value of U.S. equity securities reported by an institutional investment manager in SEC Form 13F filings.
Position: The amount of a particular security or investment held by an investor or fund.
Top holdings: The largest investments in a fund's portfolio, typically ranked by market value.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Forward price-to-earnings ratio: A valuation metric comparing a company's current share price to its estimated future earnings per share.
Enterprise value to EBITDA: A valuation ratio comparing a company's total value (including debt) to its earnings before interest, taxes, depreciation, and amortization.
52-week high: The highest price at which a security has traded during the past year.
Integrated suite: A group of related products or services offered together as a comprehensive solution.
Digital payments: Electronic methods for transferring money or making purchases online or via mobile devices.
Payment processing: The handling of electronic transactions between buyers and sellers, typically involving credit cards or digital wallets.
Logistics: The management of the movement, storage, and delivery of goods throughout the supply chain.
Financial inclusion: Efforts to make financial services accessible and affordable to all individuals and businesses, especially underserved populations.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MercadoLibre. The Motley Fool recommends Flowserve, Instacart, and Reddit. The Motley Fool has a disclosure policy.