Hedge Fund WCM Dumped MercadoLibre Stock Worth $940 Million. Here's What That Means for Investors.

According to a Securities and Exchange Commission (SEC) filing dated May 7, 2026, WCM Investment Management, LLC reduced its holding in MercadoLibre (NASDAQ:MELI) by 487,291 shares in the first quarter.

The estimated value of the shares sold was $940 million, based on the average closing price during the filing quarter. At quarter-end, the remaining stake was 270 shares valued at $437,184. The net position value declined by $984.87 million over the period, reflecting both trading activity and stock price movement.

This move reduces MercadoLibre to 0.0010% of WCM's reportable 13F AUM as of March 31, 2026.

NASDAQ:ASML: $1.91 billion (4.4% of AUM)

As of May 6, 2026, MercadoLibre shares were priced at $1,841.14, down 17.4% over the past year, underperforming the S&P 500 by 48.76 percentage points.

MercadoLibre offers a comprehensive suite of e-commerce, fintech, logistics, classifieds, advertising, and digital storefront solutions across Latin America, including Mercado Libre Marketplace, Mercado Pago, Mercado Envios, and related platforms.

It generates revenue primarily through transaction fees, payment processing, advertising services, logistics solutions, and financial products such as lending and investment tools integrated into its ecosystem.

The company serves businesses, merchants, and individual consumers in Latin America, targeting a broad market spanning online retail, financial services, and digital commerce infrastructure.

MercadoLibre is a leading e-commerce and fintech platform in Latin America, leveraging a diversified digital ecosystem to drive growth at scale. The company integrates marketplace, payments, logistics, and financial solutions, enabling seamless transactions for millions of users.

WCM Investment Management’s sale of MercadoLibre stock in the first quarter is a noteworthy event. The hedge fund sold a massive portion of its holdings, leaving just 270 shares after the transaction. This suggests WCM is bearish towards MercadoLibre to the point of nearly exiting the stock.

WCM’s sale came at a time when the technology sector was experiencing tremendous volatility as investors soured on tech businesses for their rampant spending on artificial intelligence. This may have contributed to WCM’s decision to dispose of MercadoLibre shares in Q1.

After all, MercadoLibre has boosted its capital expenditures by a significant amount. It ended 2025 with capex of $1.3 billion compared to $860 million in 2024.

That said, the company is going strong. Its 2025 sales totaled $28.9 billion, up from the prior year’s $20.8 billion. I had the pleasure of meeting members of MercadoLibre’s executive leadership years ago, and I found them to be a visionary team. Their decision to make these capex investments speaks to their ongoing desire to maintain MercadoLibre’s long-term growth in the face of AI.

With its stock price well off the 52-week high of $2,645.22, now may be a good time to pick up shares.

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Robert Izquierdo has positions in ASML and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends ASML, MercadoLibre, Sea Limited, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Philip Morris International. The Motley Fool has a disclosure policy.

Hedge Fund WCM Dumped MercadoLibre Stock Worth $940 Million. Here's What That Means for Investors. was originally published by The Motley Fool