Is MercadoLibre, Inc. (MELI) One of the High Growth Companies Hedge Funds Are Buying?
From Yahoo Finance: 2025-05-05 16:47:00
In a recent article, we explore 15 high-growth companies hedge funds are investing in, focusing on where MercadoLibre, Inc. stands among them. The global economy in 2025 is projected to see modest growth, with US GDP at 2%, Eurozone at 0.9%, and China at 4.2%. Inflation may rise due to fiscal spending and tariffs, leading to market uncertainty.
Deutsche Bank Wealth Management notes a shift from monetary to fiscal policy, favoring equities, especially American stocks. BlackRock remains optimistic about developed market stocks despite market uncertainty. Hedge funds saw strong performance in 2024, with an average return of 10.7%, driven by market volatility and policy changes.
MercadoLibre, Inc. boasts 96 hedge fund holders and an average 5-year revenue growth of 56.60%. The company operates as an e-commerce and fintech platform in Latin America, showing resilience in the region’s economy. Analysts are bullish on the stock, with BTIG maintaining a Buy rating and $2,500 price target.
MercadoLibre, Inc. reported a 37% revenue increase in Q4 2024, reaching $6.1 billion. The company achieved 67 million unique buyers, surpassing 100 million for the first time. Hedge funds are showing increased interest, with 96 funds holding stakes in the company, up from 87 in the previous quarter. Arrowstreet Capital holds the largest stake.
Ranked 6th among the high-growth companies hedge funds are buying, MercadoLibre, Inc. remains promising. However, the potential for higher returns within a shorter timeframe lies in AI stocks. For investors seeking a more promising AI stock trading at a lower valuation, a report on the cheapest AI stock is available for consideration.
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