Baillie Gifford & Co has reduced its stake in MercadoLibre (MELI) by 248,304 shares, valued at approximately $478.99 million, according to a recent SEC filing. This adjustment brings MercadoLibre’s representation in Baillie Gifford’s U.S. equity assets down to 5.71%. Despite this reduction, the firm continues to hold substantial positions in other tech giants like NVIDIA and Amazon, indicating a strategic reallocation rather than a complete withdrawal from the e-commerce sector.
MercadoLibre’s stock has underperformed, down 17.3% over the past year, significantly lagging the S&P 500. However, the company reported a robust 49% year-over-year growth in net revenue and financial income, driven by its fintech and commerce segments. The Latin American market still shows considerable growth potential, with e-commerce and financial services underpenetrated compared to more developed markets.
Investors should note that while Baillie Gifford’s stake reduction may raise eyebrows, it reflects broader portfolio adjustments rather than a negative outlook on MercadoLibre’s long-term growth prospects in a rapidly evolving market.
Source: fool.com