Fisher Funds Bets $59M on MercadoLibre Despite 12% Stock Slump

Fisher Funds Management has doubled down on MercadoLibre ($MELI), investing $59.25 million to purchase 30,716 shares in the first quarter of 2026. The move expands the fund's total position to $61.33 million, marking a contrarian investment thesis at a time when the Latin American e-commerce and fintech giant has significantly underperformed the broader market. The investment arrives as $MELI stock has declined 11.6% over the past year and trails the S&P 500 by 38 percentage points, suggesting that institutional investors are seeing a disconnect between current market valuations and the company's operational momentum.

The timing of Fisher Funds' substantial stake increase raises important questions about market sentiment and fundamental value in the e-commerce sector. While public market investors have grown cautious about $MELI's prospects, the fund's conviction purchase indicates sophisticated investors believe the current price presents a compelling entry point for a platform that continues to demonstrate robust growth metrics across its ecosystem.

Strong Fundamentals Amid Market Skepticism

Despite the stock's recent weakness, MercadoLibre continues to demonstrate impressive operational performance that justifies Fisher Funds' confidence. The platform achieved 45% year-over-year revenue growth, a metric that positions the company well ahead of many mature technology and e-commerce peers in both developed and emerging markets. This growth trajectory reflects the company's ability to expand its user base, deepen engagement, and monetize services across its diverse portfolio.

The company's payment and fintech division presents particularly compelling metrics:

• $83.7 billion in payment volume processed through the platform
• 78 million monthly active users engaging across the ecosystem
• Continued expansion of credit and lending services in markets with significant unbanked and underbanked populations
• Cross-selling opportunities between marketplace and financial services offerings

These figures underscore MercadoLibre's transformation from a pure e-commerce marketplace into a full-stack fintech provider serving Latin America's economically dynamic regions. The payment volume figure is particularly significant, as it generates higher-margin fees and positions the company to capture significant value from financial services expansion—an area with less competitive saturation than traditional e-commerce.

Market Context: The Latin American Digital Economy Story

MercadoLibre's valuation challenges must be understood within the context of broader market concerns about Latin American exposure and macroeconomic volatility. The region has faced currency headwinds, inflation concerns, and varying degrees of economic uncertainty across major markets like Brazil, Mexico, and Argentina. These factors have weighed on investor sentiment toward companies with significant Latin American revenue exposure, regardless of underlying growth metrics.

However, the fundamental opportunity remains compelling. Latin America's digital penetration continues expanding, with e-commerce and digital payments adoption accelerating among middle-income consumers. MercadoLibre benefits from several structural advantages:

• First-mover advantage as the dominant marketplace platform across the region
• Network effects that strengthen as user bases grow
• Limited direct competition from global platforms like Amazon ($AMZN), which have limited Latin American presence
• Fintech services addressing underserved credit markets
• Logistics infrastructure investments creating competitive moats

The company's outperformance of the S&P 500 in recent years, followed by its current underperformance, suggests cyclical investor sentiment rather than fundamental deterioration. Institutional investors like Fisher Funds appear to be betting on mean reversion.

Investor Implications: Contrarian Positioning and Valuation Opportunity

Fisher Funds Management's $59.25 million investment signals that sophisticated money sees value in the current price, particularly given the company's demonstrated ability to grow revenues at 45% annually while maintaining market leadership. For investors, this stake increase raises important considerations:

Valuation Reassessment: The 11.6% annual decline may have created an attractive entry point for long-term investors willing to tolerate Latin American market volatility. A company growing revenue at 45% with 78 million monthly active users and expanding fintech capabilities typically commands premium valuations in bull markets.

Institutional Conviction: Fisher Funds' willingness to increase exposure during a period of stock weakness suggests that major institutional investors believe the market is mispricing the company. When well-resourced funds with long time horizons increase positions during weakness, it often precedes market reassessment.

Fintech Sector Positioning: MercadoLibre's expanding financial services business—evidenced by the $83.7 billion payment volume—positions the company in one of fintech's highest-growth segments. As financial inclusion accelerates across Latin America, the company stands to benefit disproportionately from digital payment adoption.

Currency and Macro Risk: Investors should acknowledge that Latin American exposure carries genuine currency and political risk. However, the company's ability to maintain strong growth despite these headwinds demonstrates operational resilience that may not be fully reflected in current valuations.

The 38 percentage point underperformance versus the S&P 500 provides context for the opportunity cost of missing a potential rebound. Should MercadoLibre's fundamentals continue improving and Latin American market sentiment improve, the valuation gap could compress significantly.

Looking Ahead: Testing the Thesis

Fisher Funds' conviction play hinges on several key assumptions: that MercadoLibre's 45% revenue growth trajectory continues, that fintech expansion drives margin improvement, and that Latin American macroeconomic conditions stabilize. The coming quarters will test whether this institutional positioning proves prescient or represents a near-term headwind for patient capital.

The investment also highlights an important market dynamic: when major institutional investors increase stakes during periods of stock weakness, they are explicitly betting against short-term sentiment and on fundamental recovery. Whether $MELI's underperformance represents a buying opportunity or the beginning of a longer-term repricing remains the key question for investors evaluating this contrarian institutional bet on Latin America's digital economy champion.