New York City-based D1 Capital Partners initiated a new position in MercadoLibre (MELI +0.66%), acquiring 128,803 shares valued at approximately $301 million, according to a November 14 SEC filing.
What Happened
According to a U.S. Securities and Exchange Commission (SEC) filing dated November 14, D1 Capital Partners L.P. established a new position in MercadoLibre (MELI +0.66%) during the third quarter. The fund reported holding 128,803 shares valued at $301 million as of September 30. This addition brought the fund’s total reportable U.S. equity holdings to $8.7 billion across 38 positions.
What Else to Know
D1 Capital's new position in MercadoLibre now accounts for 3.5% of its 13F portfolio, placing it outside the fund’s top five holdings.
Top five holdings following the filing:
- NASDAQ: CART: $829.2 million (9.5% of AUM)
- NASDAQ: APP: $601.3 million (6.9% of AUM)
- NYSE: CLH: $567.9 million (6.5% of AUM)
- NYSE: RDDT: $465.6 million (5.4% of AUM)
- NYSE: FLS: $397.5 million (4.6% of AUM)
As of Friday, MercadoLibre shares were priced at $2,066.42, up 4% over the past year and underperforming the S&P 500, which is up 13% in the same period.
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 an integrated suite of e-commerce, digital payments (Mercado Pago), consumer credit, logistics (Mercado Envios), classifieds, advertising, and storefront solutions across Latin America.
- The company generates revenue primarily through transaction fees on its online marketplace, payment processing, financial services, advertising, and value-added logistics and fulfillment services.
- It serves businesses, merchants, and individual consumers in Latin America, targeting both established retailers and small enterprises seeking digital commerce solutions.
MercadoLibre, Inc. is the leading e-commerce and fintech platform in Latin America. The company leverages its integrated ecosystem—including marketplace, payments, credit, and logistics—to drive user engagement and cross-sell financial services. Its broad product suite and deep regional presence provide a significant competitive advantage in capturing the growth of digital commerce and financial inclusion across its core markets.
Foolish Take
A fresh position in MercadoLibre by a firm like D1 signals that investors with a long-term horizon may see the stock's recent trajectory as an entry point into one of Latin America’s most durable growth stories. Even after a pullback of roughly 20% from recent record highs, MercadoLibre continues to post the kind of operating momentum that long-term investors typically look for — strong top-line expansion, improving scale economics, and deepening ecosystem engagement. In the third quarter, revenue rose 39% year over year to $7.4 billion, marking its 27th straight quarter above 30% growth, while operating income increased to $724 million with a 9.8% margin. Net income, meanwhile, reached $421 million, supported by accelerating commerce and fintech adoption across all major markets.
Against this backdrop, D1 Capital’s new $301 million position — now 3.5% of its portfolio — fits the fund’s broader pattern of buying dominant platforms with multi-vertical business models. For long-term investors, MercadoLibre’s widening moat across payments, credit, logistics, and advertising remains the central thesis. If the company sustains its pace of ecosystem expansion — particularly in Brazil and Mexico — today’s valuation could certainly look attractive in hindsight.
Glossary
13F assets under management (AUM): The total value of U.S. equity securities reported by an institutional investment manager in SEC Form 13F filings.
Position: The amount of a particular security or investment held by an investor or fund.
Top holdings: The largest investments in a fund's portfolio, typically ranked by market value.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Forward price-to-earnings ratio: A valuation metric comparing a company's current share price to its estimated future earnings per share.
Enterprise value to EBITDA: A valuation ratio comparing a company's total value (including debt) to its earnings before interest, taxes, depreciation, and amortization.
52-week high: The highest price at which a security has traded during the past year.
Integrated suite: A group of related products or services offered together as a comprehensive solution.
Digital payments: Electronic methods for transferring money or making purchases online or via mobile devices.
Payment processing: The handling of electronic transactions between buyers and sellers, typically involving credit cards or digital wallets.
Logistics: The management of the movement, storage, and delivery of goods throughout the supply chain.
Financial inclusion: Efforts to make financial services accessible and affordable to all individuals and businesses, especially underserved populations.
