MercadoLibre (MELI) Slid Following a Decline in Operating Margin

2 hours ago 1

Soumya Eswaran

Wed, March 18, 2026 astatine 7:27 AM CDT 3 min read

Polen Capital, an concern absorption company, released its fourth-quarter capitalist missive for “Polen International Growth Strategy”. A transcript of the missive tin beryllium downloaded here. In 2025, overseas equity markets reached their highest returns successful much than a decade, whereas Polan International Growth had level returns. This was not attributed to weakening concern fundamentals among its holdings, but the market’s penchant for cyclically delicate businesses. The strategy seeks to put successful companies with enduring competitory strengths, precocious returns connected invested capital, and accordant earnings. The Strategy returned -2.21% (gross) and -2.52% (net) successful Q4 compared to 5.05% instrumentality for MSCI ACWI (ex-USA). For 2025, the Strategy returned 0.68% (gross) and -0.52% (net) compared to 32.39% instrumentality for the Index. In addition, delight cheque the Strategy’s apical 5 holdings to cognize its champion picks successful 2025.

In its fourth-quarter 2025 capitalist letter, Polen International Growth Strategy highlighted MercadoLibre, Inc. (NASDAQ:MELI) arsenic 1 of its starring detractors. MercadoLibre, Inc. (NASDAQ:MELI) is simply a starring online commerce level successful Latin America that operates Mercado Libre Marketplace and Mercado Pago FinTech platforms. On March 17, 2026, MercadoLibre, Inc. (NASDAQ:MELI) banal closed astatine $1,728.14 per share. One-month instrumentality of MercadoLibre, Inc. (NASDAQ:MELI) was -13.98%, and its shares mislaid 16.35% implicit the past 52 weeks. MercadoLibre, Inc. (NASDAQ:MELI) has a marketplace capitalization of $87.61 billion.

Polen International Growth Strategy stated the pursuing regarding MercadoLibre, Inc. (NASDAQ:MELI) successful its 4th fourth 2025 capitalist letter:

"The Portfolio’s apical comparative and implicit detractors were Monday.com, MercadoLibre, and SAP. MercadoLibre, Inc. (NASDAQ:MELI) is the largest e-commerce and payments level successful Latin America. The banal declined during the 4th chiefly related to a flimsy diminution successful operating borderline arsenic the institution invests successful escaped shipping, selling and recognition products. In our view, management’s aptitude to fto spell of adjacent word profitability to turn its full addressable marketplace and grow moat has enabled the institution to turn topline astatine 35%+ successful its 26th twelvemonth of existence. The institution continues to payment from debased e commerce penetration, debased online outgo penetration, and debased recognition penetration successful LATAM. Over the years not lone bash we judge that the institution has built a defensible moat but it continues to accommodate to marque the moat stronger and full addressable marketplace bigger."

Is MercadoLibre, Inc. (MELI) Among The Aggressive Stocks Picked by Hedge Funds?

MercadoLibre, Inc. (NASDAQ:MELI) is successful 37th presumption connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 113 hedge money portfolios held MercadoLibre, Inc. (NASDAQ:MELI) astatine the extremity of the 4th quarter, up from 109 successful the erstwhile quarter. 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.

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