MercadoLibre continues delivering strong 49% YoY revenue growth in Q1 2025, but operating margins have halved from 12.9% to 6.9% due to aggressive investments in logistics, fintech expansion, and intensifying competition from Shopee and Temu. Despite near-term profitability concerns, the company's integrated business model, dominant market position, and reasonable valuation (PS multiple of 2.9) may present a compelling long-term opportunity if management successfully converts current investments into stronger margins and free cash flow.

MercadoLibre's stock has declined due to profit falls from competitive investments, with UBS downgrading the stock. However, management highlights a significant growth opportunity: Latin Americans make only 7 online purchases annually compared to 41 for Americans, suggesting substantial room for e-commerce penetration growth. The company's established position in the region positions it well to benefit from this secular tailwind.

Following President Trump's announcement of a U.S.-Iran peace deal and the reopening of the Strait of Hormuz, oil prices plunged 5.4% to $80/barrel. However, 20 large-cap stocks worth over $100 billion remain trading 15-24% below their pre-war levels from February 27, 2026. The laggards span consumer staples, healthcare, software, and mining sectors, with weakness extending beyond the war premium as these companies face ongoing margin pressures from higher energy costs.

Ten large-cap stocks experienced significant declines during the week of May 25-29, 2026. Zscaler led losses with a 20.06% drop following disappointing Q3 results and weak Q4 guidance. Other major losers included Boston Scientific (16.95%), AutoZone (14.21%), Regencell Bioscience (12.61%), and Venture Global (10.87%). Declines were attributed to earnings misses, analyst downgrades, and energy sector weakness following geopolitical developments.

Matthews International Capital Management sold 82,183 shares of Futu Holdings, reducing its stake from 7.5% to 3.81% of AUM in a transaction valued at $12.78 million. While the sale may concern investors, it likely reflects profit-taking after Futu's 58% gain over the past year rather than fundamental business concerns. The fund also reduced other high-growth holdings during the quarter.

Etsy's stock has fallen from its 2021 peak of $296.91 to $64, as pandemic-driven growth has slowed and acquisitions compressed margins. However, the company is now stabilizing its core business, divesting non-core assets, and improving profitability. Trading at just 9 times next year's adjusted EBITDA, Etsy appears undervalued and could be a compelling turnaround opportunity.

ByteDance's valuation has reached $600 billion, making it China's second most valuable internet company. The valuation reflects investor confidence in its three main pillars: Douyin (domestic e-commerce and services anchor), TikTok (global growth engine despite geopolitical risks), and AI through Doubao (emerging growth driver). The company is investing heavily in AI infrastructure and shows no urgency for an IPO, though smaller subsidiaries could potentially be listed separately.

PDD Holdings, operator of Pinduoduo and Temu, has fallen 25% from its 52-week high and now trades at a forward P/E of 8x, down 40% from its three-year average. While Q4 2025 revenue grew 12% and beat estimates, adjusted EPS fell 10% and missed expectations. Full-year revenue growth decelerated to 10% from 59% in 2024, with operating margins contracting 625 basis points due to increased costs and R&D spending. The company is undergoing a three-year supply chain transformation to strengthen its merchant ecosystem. Despite near-term profitability challenges, PDD generated $15.3 billion in operating cash flow in 2025, suggesting the market may be overly pessimistic about its long-term prospects.

Several major companies are reporting earnings this week (March 23-27, 2026). Ondas Holdings impressed with a strong fiscal 2026 revenue outlook of at least $375 million. GameStop will report Q4 results with investors watching for CEO Ryan Cohen's acquisition and growth plans. PDD Holdings faces scrutiny on whether it can maintain double-digit growth while managing Temu's expansion costs. Other notable reporters include Carnival Corp, Pony AI, Beyond Meat, and The Lovesac Co.

U.S. stocks tumbled for the fourth consecutive week amid Middle East tensions and inflation concerns. Ondas (ONDS), a wireless data and drone solutions provider, is recommended as a buy ahead of Q4 earnings, with revised guidance showing strong revenue and net income beats. PDD Holdings (PDD), parent of Pinduoduo and Temu, is recommended as a sell due to slowing growth, regulatory threats, and margin pressures from aggressive international expansion.

Li Lu, founder of Himalaya Capital and a renowned value investor inspired by Warren Buffett, has concentrated 75% of his $3.5 billion fund into three stocks: Alphabet (44%), Bank of America, and PDD Holdings. Alphabet has performed strongly with an 86% gain over the past year, supported by favorable DOJ ruling and competitive AI capabilities. Bank of America benefits from declining interest rates and potential regulatory relief. PDD Holdings, trading at a low 8x forward earnings, faces Chinese economic headwinds but offers growth potential if China's economy strengthens.

HHLR Advisors sold approximately $276 million worth of Futu Holdings shares in Q4, reducing its stake by half from 17.52% to 8.63% of AUM. Despite the large sale, Futu continues to demonstrate strong fundamentals with revenue reaching $2.9 billion and net income doubling to $1.45 billion. The stock has gained 21% over the past year, outperforming the S&P 500's 16% gain.