Whenever I see a $301 million bet, I think of my cousin who once “invested” $300 in a video game character meant to “revolutionize virtual gardening.” MercadoLibre, though, isn’t a pixelated cactus. New York-based D1 Capital Partners doubled down on the Latin American e-commerce giant, per an SEC filing dated November 14, snatching 128,803 shares at a price that could buy my entire family a subscription to streaming services for a millennium. Or, you know, a yacht. It’s unclear.
What Happened
Deep in the third quarter, D1 Capital Partners L.P. took a modest dip into MercadoLibre (MELI 3.41%), now owning 3.5% of its 13F portfolio. The fund’s total U.S. equity holdings now sit at $8.7 billion across 38 positions-a number that makes my neighbors’ 32-tab spreadsheet of retirement accounts look quaint. Imagine if my cousin could do that with his virtual cactus. “Margins!” he’d say. “I’ve got artistic margins.”
What Else to Know
MercadoLibre’s new allocation in D1’s portfolio is a flicker, outside their five-brightest holdings. Which, in my experience, is like ranking your siblings by how many times you’ve politely disagreed with their music choices over the years. But let’s scroll through the fund’s top five, shall we?
- NASDAQ: CART: $829.2 million (9.5% of AUM) – Crafting whimsy, one electric park.
- NASDAQ: APP: $601.3 million (6.9% of AUM) – Because Roomba-sized robots will finally clean your dog messes.
- NYSE: CLH: $567.9 million (6.5% of AUM) – Thermal management for the rest of us who can’t outsource our body heat.
- NYSE: RDDT: $465.6 million (5.4% of AUM) – Radar sensing for cars. Or maybe for keeping your coffee warm?
- NYSE: FLS: $397.5 million (4.6% of AUM) – Fiber and lasers. Because who doesn’t want to shoot confetti through a house?
MercadoLibre’s stock price? $2,066.42 as of market close Friday-up 4% over the past year but still trailing the S&P 500. It’s the financial market’s equivalent of showing up to a barbecue in a business suit. Underdressed for joy, over-dressed for calamari.
Company Overview
| Metric | Value |
|---|---|
| Market Capitalization | $104.8 billion |
| Revenue (TTM) | $26.2 billion |
| Net Income (TTM) | $2.1 billion |
| Price (as of market close Friday) | $2,066.42 |
Company Snapshot
- MercadoLibre offers a chaotic ballet of e-commerce, digital payments (Mercado Pago), and logistics (Mercado Envios). It’s the difference between teaching your cat to pick up your socks and hoping it stops damaging your connected TV.
- Revenue routes include transaction fees, payment processing (enough for a small country’s GDP), and logistics-services that probably feel as bureaucratic as my local DMV. The people, though, are less cats and more… loyal puppeteers.
- They focus on Latin America, a region where I once spent two hours trying to pay for a bottle of soda with a QR code. MercadoLibre’s ecosystem? Less like a puppet show and more like a Netflix catalog without subscriptions.
Of course, MercadoLibre is Latin America’s de facto e-commerce juggernaut. It offers a Swiss Army knife of digital services, from Mortgage Myths to Payment Paradoxes-each neatly shipped to your doorstep with whatever logistics miracle made sure your Aunt Gladys’s wedding dress arrived before the guests (and not in a different color).
Foolish Take
D1 Capital’s allocation feels admirably bold-like investing in my sister’s app, “WellnessFinder,” which promises “a meditation playlist that knows you before you do, really.” Admittedly, for money managers, MercadoLibre offers verticals as varied as my cousin’s list of “things invented by Netflix.” As the Q3 report shows, revenue rose 39% year-over-year to $7.4 billion-a number that sounds impressive until you think of it as paying for cheese to fill a football stadium. Operating income? $724 million. Or, enough butter to slap on the nachos at that stadium.
Beyond the figures, Messrs. Capital are doubling down on MercadoLibre’s ecosystem moat. Think of it like a family heirloom-expansive but also stubbornly opaque. If Mercado Pago and its ilk go from breadwinner to bankroll in Brazil or Mexico, today’s stumbles may feel quaint by tomorrow. Just don’t ask me to explain how that works to Grandma.
YLES AND FUNDAMENTALL HAVE SINCE CHANGED MY OUTCOME: I, too, now own shares. But not in the stock. In the vague hope that one day my cousin’s cactus grows a YouTube presence bigger than his GPA.
🦈
Read More
- Predator: Badlands Is Not The Highest Grossing Predator Movie
- The Enigmatic Dance of Crypto: A Dostoevskian Exploration
- XRP Plummets 9.5%… But the TD Sequential Says “Buy!” 💸📉📈
- SEC Halts Crypto ETFs: Will ProShares Cave or Quit? 🚫💰
- 5 Ways ‘Back to the Future’ Aged Poorly (And 5 Ways It Aged Masterfully)
- IBM’s Quantum Ascent: A Stock’s Social Climb
- Trump Wants CNN ‘Neutralized’ in WBD Sale, Paramount Has ‘Inside Shot’
- WBD Demands Higher Bids by Dec. 1 — Saudis In Play?
- Hot Toys Reveals New Ben Affleck Batman Right After Zack Snyder’s Photo
- Is Kalshi the New Polymarket? 🤔💡
2025-12-08 10:34