We recently released a list 15 high-growth companies hedge funds are buying. In this article, we will look at Mercadolibre, Inc. (NASDAQ:MELI) Position against other high-growth stocks.
The global economy is expected to face modest growth in 2025 due to ongoing challenges, with U.S. GDP forecast at 2%, euro zone at 0.9%, and China at 4.2%. Inflation may remain high due to increased fiscal spending and potential tariffs, and the potential room for central banks to lower, resulting in uncertainty and possible volatility. But productivity gains driven by AI and other emerging technologies offer long-term hope. The U.S. is expected to benefit the most from these gains, and Europe may lag behind due to slower investment and technology adoption.
According to Deutsche Bank Wealth Management, policies are shifting from currency to fiscal, and countries such as China are expected to launch growth plans. Stocks, especially U.S. stocks, are favored by investors and are supported by profit growth and favorable policy expectations. Bond markets and commodities also provide opportunities, and infrastructure investment is considered a long-term growth area. Similarly, despite the current market uncertainty, BlackRock believes there is reason to remain optimistic about developed market stocks in the next 6 to 12 months. The U.S. Treasury once acted as a safety net when stocks fell and has not provided the same protection lately. Furthermore, the dollar has lost its pace in the recent sell-off, which is unusual. As a result, some investors are turning to alternatives such as gold, which have reached record highs. The rise of artificial intelligence is also reshaping the market, allowing people to concentrate more on some large-scale technology names. This can enhance returns, but also increase risks. Private capital also has demand, although higher interest rates may be weighed in future returns.
As the market becomes increasingly unpredictable, many investors are beginning to follow hedge funds, hoping they can repeat last year’s strong returns and stay ahead. In 2024, hedge funds issued outstanding results, taking advantage of market volatility and policy shifts. The average return by November was 10.7%, which is a significant improvement from the 5.7% return in the same period in 2023. The rise has been backed by market turmoil, changes in central bank policies and uncertainty surrounding the U.S. presidential election. It is worth noting that some hedge funds have made amazing returns, such as Light Street Capital’s Long/Short Tech Fund soaring 59.4%, while macro-centric fund Discovery Capital has a return of 52%. Bridgewater’s Pure Alpha Fund rose 11%, with Marshall Wace, a major UK hedge fund, garnering impressive returns in several of its funds, including its Eureka Fund with a return of 14%. Multi-strategy funds such as Citadel and Millennium also performed well.
With this prospect in mind, let’s take a look at the top high-growth companies invested in by hedge funds.
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In this article, we used the Finviz filter and filtered stocks with revenue growth of more than 20% over 5 years, verifying this information from other sources. We selected 15 stocks with the highest hedge fund sentiment from Insider Monkey's database (Q4 2024) to compile this list. We rank the list from the minimum to the majority of hedge fund holders.
Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our strategy for quarterly newsletters selects 14 small and large stocks every quarter, returning 373.4% since May 2014, beating its benchmark by 218 percentage points (See more details here).
Number of hedge fund holders: 96
Average 5-year revenue growth: 56.60%
Mercadolibre, Inc. (NASDAQ:MELI) is an e-commerce and fintech company in Latin America, operating primarily in Brazil, Mexico and Argentina. It operates the online marketplace, a digital payment platform, and provides tools for investment, loans, transportation, online advertising, and allows users to develop online stores through Mercado Shops. It is one of the best high-growth inventory to consider.
On April 21, BTIG analysts at Mercadolibre, Inc. (NASDAQ:MELI) maintains the buy rating of $2,500. Analysts remain optimistic about entering their Q1 2025 earnings report. Despite global uncertainty, Latin America's economy showed resilience, while Brazil's retail spending rose 3.5% in March. Credit trends also remained stable, with loans that did not perform well only slightly up. Overall, analysts see solid momentum and guarantee stocks.
Mercadolibre, Inc. (NASDAQ:MELI) revenue in 2024 rose 37% year-on-year to $6.1 billion in Q4, with the company reporting operating income of $820 million. Meli reached 67 million unique buyers in the fourth quarter, and the company helped the company more than 100 million buyers for the first time. Total commodity value for the quarter was $14.5 billion, with growth in Brazil and Mexico steady. Advertising revenue grew 41%, with Mercado Pago's revenue growing significantly, with 61 million active users and a $6.6 billion credit portfolio. The company remains optimistic about the future and plans to strengthen its position as the leading digital bank in Latin America.
Insider Monkey’s hedge funds tracked in the 4th quarter, 96 funds were Mercadolibre, Inc. (NASDAQ:MELI) fund, compared with 87 funds in the previous quarter. Arrow Capital is the company's largest stakeholder, of which 545,292 shares are worth $927.2 million.
Overall, Merley Ranked sixth Of the 15 high-growth companies, hedge funds are buying. Although we acknowledge the potential of high-growth stocks, our belief lies in the belief that AI stocks have greater hope to deliver higher returns and do so in a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for AI stocks that are more promising than Meli but have less than 5 times its earnings, check out our report The cheapest AI stock.
Read next: According to billionaires, there are 20 best AI stocks available now, and 30 best stocks to buy now.
Disclosure: None. This article was originally published in Internal monkey.