William Blair Dumps $135 Million of MercadoLibre Amid the Stock's 20% Decline

Core Insights - William Blair Investment Management reduced its position in MercadoLibre by 64,225 shares, amounting to an estimated $134.90 million transaction, with the quarter-end value of the position decreasing by $203.52 million due to trading and share price movements [1] - Following the sale, MercadoLibre now represents 0.93% of reportable 13F AUM [2] - As of February 6, 2026, MercadoLibre shares were priced at $2,035.59, reflecting a 3.8% increase over the past year, but underperforming the S&P 500 by 12 percentage points [3] Company Overview - MercadoLibre is a leading e-commerce and fintech provider in Latin America, offering a diversified portfolio of digital platforms and financial services [5] - The company utilizes proprietary technology and logistics infrastructure to facilitate online transactions and payments, providing a competitive advantage in capturing growth in digital commerce and financial inclusion [5] - Key financial metrics include a revenue of $26.19 billion and a net income of $2.08 billion for the trailing twelve months [4] Business Model - MercadoLibre generates revenue primarily from transaction fees, payment processing, credit products, logistics services, and value-added digital offerings to merchants and consumers [8] - The company serves businesses, merchants, and individual consumers throughout Latin America, targeting both online sellers and buyers seeking integrated e-commerce and financial solutions [8] Market Position - Despite the recent sale by William Blair, MercadoLibre remains the 12th-largest holding in the portfolio, indicating continued confidence in the company's potential [9] - The gradual selling trend observed over the last nine quarters suggests a strategic approach rather than a lack of confidence in the company's future prospects [9]