Yahoo Finance MercadoLibre (MELI) Reported Strong Results in Q1
Lakehouse Capital, a Sydney-based investment manager, released its “Lakehouse Global Growth Fund” May 2024 investor letter. A copy of the letter can be downloaded here. May was a positive month for global markets as discussions about inflation and the direction of interest rates went on. The Fund returned 2.2% net of fees and expenses for the month compared to 1.6% for its benchmark. Since its inception in December 2017, the Fund has returned 158.5% compared to 99.1% for its benchmark, the MSCI All Country World Index, Net Total Returns (AUD). In addition, please check the fund’s top five holdings to know its best picks in 2024.
Lakehouse Global Growth Fund highlighted stocks like MercadoLibre, Inc. (NASDAQ:MELI) in the first quarter 2024 investor letter. MercadoLibre, Inc. (NASDAQ:MELI) is an online commerce platform that operates Mercado Libre Marketplace and Mercado Pago FinTech platforms. MercadoLibre, Inc.’s (NASDAQ:MELI) one-month return was -2.10%, and its shares gained 33.74% of their value over the last 52 weeks. On July 2, 2024, MercadoLibre, Inc. (NASDAQ:MELI) stock closed at $1,596.48 per share with a market capitalization of $80.937 billion.
Lakehouse Global Growth Fund stated the following regarding MercadoLibre, Inc. (NASDAQ:MELI) in its May 2024 investor letter:
"The Fund's largest position, Buenos Aires based e-commerce leader MercadoLibre, Inc. (NASDAQ:MELI), reported a robust result that once again came in ahead of analyst expectations. Net revenue grew 30% year-on-year in U.S. dollar terms to US$4.0 billion while operating margins came in at 12.0%, providing a healthy balance of growth and profitability. Its marketplace business proved resilient, with strength in Brazil and Mexico more than enough to offset weakness in Argentina, which contacted by roughly a third due to weak macroeconomic conditions exacerbated by the 50%-plus devaluation of the Argentine Peso in December 2023. Whilst the economic situation in Argentia remains severe, we are comfortable with the risk as not only has management proved very adept at handling the challenges to date, but post the devaluation, the risk is meaningfully reduced as Argentina now only contributes 13% of the company's total operating income. Overall, gross merchandise value still grew at 20% year-on-year to $11.4 billion and we continue to see significant opportunities ahead given the relatively nascent penetration of e-commerce in the region."
A customer using their phone to access an online commerce platform.
MercadoLibre, Inc. (NASDAQ:MELI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 79 hedge fund portfolios held MercadoLibre, Inc. (NASDAQ:MELI) at the end of the first quarter which was 81 in the previous quarter. MercadoLibre, Inc.’s (NASDAQ:MELI) consolidated revenues increased at a fast pace due to strong operational momentum. While we acknowledge the potential of MercadoLibre, Inc. (NASDAQ:MELI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
We discussed MercadoLibre, Inc. (NASDAQ:MELI) in another article and shared the list of best consumer cyclical stocks to buy. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
