Michael Burry purchased a new full position in MercadoLibre last week. He capitalized on the stock's sharp decline following its first-quarter earnings report.
Burry highlighted the company's projected 2026 sales of nearly $40 billion. This target represents a 30% increase from 2025 projections. He also cited the firm's cash-settled employee award system as a key strength.
The investor stated the stock currently trades well below his intrinsic value estimate. MercadoLibre shares fell 12.7% on Friday, May 8.
The decline followed an earnings report that showed a steep drop in operating margins despite strong revenue growth. Several analysts lowered their price targets in response.
MercadoLibre shares rose 0.5% in premarket trading on May 11 following the disclosure.