PDD Holdings Inc., a multinational commerce group, owns and operates a portfolio of businesses. It operates Pinduoduo, an e-commerce platform that offers products in various categories, including agricultural produce, apparel, shoes, bags, mother and childcare products, food and beverage, electronic appliances, furniture and household goods, cosmetics and other personal care, sports and fitness items and auto accessories; and Temu, an online marketplace. It focuses on bringing businesses and people into the digital economy. The company was formerly known as Pinduoduo Inc. and changed its name to PDD Holdings Inc. in February 2023. PDD Holdings Inc. was incorporated in 2015 and is based in Dublin, Ireland.

PDD Holdings Inc.

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares MSCI Emerging Markets ETF (Symbol: EEM) where we have detected an approximate $438.7 million dollar inflow -- that's a 1.5% increase week over week in outstanding units (from 442,800,000 to 449,550,000). Among the largest underlying components of EEM, in trading today Nu Holdings Ltd (Symbol: NU) is down about 0.4%, PDD Holdings Inc (Symbol: PDD) is off about 1.2%, and CrediCorp Ltd. (Symbol: BAP) is lower by about 1%. For a complete list of holdings, visit the EEM Holdings page » The chart below shows the one year price performance of EEM, versus its 200 day moving average:
Looking at the chart above, EEM's low point in its 52 week range is $47.98 per share, with $71.57 as the 52 week high point — that compares with a last trade of $64.75. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further EEM Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

EEM, NU, PDD, BAP: Large Inflows Detected at ETF

In the latest trading session, PDD Holdings Inc. Sponsored ADR (PDD) closed at $102.92, marking a +1.07% move from the previous day. This move outpaced the S&P 500's daily gain of 0.56%. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 0.78%.
The company's stock has dropped by 2.52% in the past month, exceeding the Retail-Wholesale sector's loss of 5.72% and lagging the S&P 500's loss of 1.27%.
The investment community will be closely monitoring the performance of PDD Holdings Inc. Sponsored ADR in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.88, marking a 4.35% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $17.93 billion, indicating a 18.35% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.48 per share and revenue of $60.77 billion, indicating changes of -7.42% and +11.12%, respectively, compared to the previous year.
Any recent changes to analyst estimates for PDD Holdings Inc. Sponsored ADR should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.2% higher within the past month. PDD Holdings Inc. Sponsored ADR is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that PDD Holdings Inc. Sponsored ADR has a Forward P/E ratio of 8.4 right now. Its industry sports an average Forward P/E of 15.21, so one might conclude that PDD Holdings Inc. Sponsored ADR is trading at a discount comparatively.
One should further note that PDD currently holds a PEG ratio of 0.87. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Commerce industry currently had an average PEG ratio of 0.88 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 163, this industry ranks in the bottom 34% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

PDD Holdings Inc. Sponsored ADR (PDD) Outperforms Broader Market: What You Need to Know

Key Points
MercadoLibre continues to deliver robust growth.
Its valuation has become more attractive.
The investment thesis for MercadoLibre hinges on the premise that today's heavy investments will eventually translate into stronger margins, higher earnings, and expanding free cash flow.
After MercadoLibre (NASDAQ: MELI) delivered another year of more than 30% revenue growth in 2025, you might have expected the stock to surge. Instead, the stock went the other way.
Why? Because the narrative surrounding MercadoLibre has changed. A few years ago, investors were asking how big the company could become. Today, they're asking whether it can sustain its growth while protecting profitability.
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That shift in sentiment has weighed on MercadoLibre stock. But it also raises an important question: Has the market become too pessimistic about one of Latin America's highest-quality technology companies?
Why have investors become more cautious?
MercadoLibre's business isn't slowing down. In fact, in the first quarter, revenue grew 49% year over year. What has changed is that its economics have simply become more complicated.
Over the past year, the company has invested aggressively to solidify its leadership in the e-commerce and fintech spaces in its core markets. It has expanded its logistics network, lowered free-shipping thresholds in Brazil, and continued pouring capital into Mercado Pago.
Those investments have strengthened the platform, but they've also increased costs.
At the same time, competition has intensified. Sea Limited's Shopee is competing aggressively in Brazil through shipping subsidies and attractive seller incentives. PDD Holdings' Temu is reshaping consumer expectations around pricing with ultra-cheap goods shipped from China.
As a result, MercadoLibre's operating margins have come under pressure, almost halving from 12.9% to 6.9%.
In other words, the market isn't questioning whether MercadoLibre can continue growing. It's questioning whether that growth will create long-term shareholder value.
The business is getting stronger
Ironically, if you ignored the share price and looked only at the operating business, you might conclude MercadoLibre is stronger today than it was three years ago.
Revenue is growing at an impressive pace. Gross merchandise volume keeps climbing. Mercado Pago is expanding across payments, lending, investments, and digital banking. Meanwhile, Mercado Ads has become another meaningful growth engine, allowing the company to monetize its marketplace more effectively.
More importantly, these businesses reinforce one another. The marketplace attracts buyers and merchants. Mercado Pago makes transactions easier while deepening customer relationships. Mercado Envios improves delivery speed and reliability. Mercado Ads gives merchants another reason to invest in the platform.
Each business becomes more valuable because the others exist. That integrated model makes MercadoLibre increasingly difficult to replicate, even as competition intensifies.
Has the valuation become more attractive?
The market's increasingly cautious stance toward the company has had another effect: The stock's valuation has become far more reasonable.
During the COVID-19 pandemic, investors valued MercadoLibre like a high-growth marketplace with enormous potential. Today, the company has evolved into a much larger and more diversified business, yet it trades at a price-to-sales (PS) multiple of 2.9, well below the double-digit PS multiples seen during the 2020 and 2021 boom.
That lower valuation reflects legitimate concerns. Investors want proof that today's heavy investments will eventually translate into stronger margins, higher earnings, and expanding free cash flow.
But that's also where the opportunity may lie. If management succeeds in turning today's logistics investments, fintech expansion, and merchant services into stronger long-term economics, today's valuation could prove surprisingly attractive in hindsight.
What does it mean for investors?
Calling any stock a once-in-a-decade buying opportunity sets an exceptionally high bar.
MercadoLibre hasn't earned that label with certainty. E-commerce competition remains intense. Margin pressure could persist longer than investors expect. And Latin America's macroeconomic environment has never been easy to navigate.
Yet the ingredients of an exceptional long-term investment remain firmly in place. MercadoLibre benefits from a dominant market position, several secular growth drivers, expanding network effects, and a management team that's willing to invest for the long term rather than maximize short-term earnings.
The best investments rarely look obvious when expectations are low. They emerge when a great business continues improving while the market focuses on near-term uncertainty.
MercadoLibre may be entering exactly that phase.
Should you buy stock in MercadoLibre right now?
Before you buy stock in MercadoLibre, consider this:
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Lawrence Nga has positions in PDD Holdings and Sea Limited. The Motley Fool has positions in and recommends MercadoLibre and Sea Limited. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Could MercadoLibre Stock Be a Once-in-a-Decade Buying Opportunity?

In trading on Wednesday, the KraneShares CSI China Internet ETF is outperforming other ETFs, up about 3.5% on the day. Components of that ETF showing particular strength include shares of Autohome, up about 5.6% and shares of PDD Holdings, up about 2.6% on the day.
And underperforming other ETFs today is the Amplify Junior Silver Miners ETF, off about 6.2% in Wednesday afternoon trading. Among components of that ETF with the weakest showing on Wednesday were shares of Seabridge Gold, lower by about 8.8%, and shares of Avino Silver & Gold Mines, lower by about 8.7% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Wednesday's ETF Movers: KWEB, SILJ

PDD Holdings Inc. Sponsored ADR (PDD) closed at $83.74 in the latest trading session, marking a +1.64% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.72%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.12%.
Shares of the company have depreciated by 3.15% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 0.64%, and the S&P 500's loss of 0.9%.
Investors will be eagerly watching for the performance of PDD Holdings Inc. Sponsored ADR in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.85, reflecting a 7.47% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $17.13 billion, indicating a 18.04% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $10.37 per share and a revenue of $70.74 billion, demonstrating changes of +0.1% and +16.67%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for PDD Holdings Inc Sponsored ADR. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 2.19% fall in the Zacks Consensus EPS estimate. Right now, PDD Holdings Inc. Sponsored ADR possesses a Zacks Rank of #3 (Hold).
Digging into valuation, PDD Holdings Inc. Sponsored ADR currently has a Forward P/E ratio of 7.95. This indicates a discount in contrast to its industry's Forward P/E of 17.68.
We can also see that PDD currently has a PEG ratio of 0.63. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.09 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 170, this industry ranks in the bottom 31% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why PDD Holdings Inc. Sponsored ADR (PDD) Outpaced the Stock Market Today

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares MSCI Emerging Markets Asia ETF (Symbol: EEMA) where we have detected an approximate $226.3 million dollar outflow -- that's a 16.2% decrease week over week (from 14,200,000 to 11,900,000). Among the largest underlying components of EEMA, in trading today Kanzhun Ltd (Symbol: BZ) is up about 0.3%, TAL Education Group (Symbol: TAL) is up about 0.6%, and Legend Biotech Corp (Symbol: LEGN) is up by about 0.4%. For a complete list of holdings, visit the EEMA Holdings page » The chart below shows the one year price performance of EEMA, versus its 200 day moving average:
Looking at the chart above, EEMA's low point in its 52 week range is $63.50 per share, with $107.9984 as the 52 week high point — that compares with a last trade of $96.12. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
Largest Discount Preferreds
Funds Holding RTYD
Best High Dividend Stocks
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

iShares MSCI Emerging Markets Asia ETF Experiences Big Outflow

Key Points
MercadoLibre is heavily investing in its growth story.
Eli Lilly isn't resting on its laurels with its GLP-1 success.
These growth stocks have plenty of runway left.
If you're investing in the current market, it's a good idea to focus on businesses balancing the momentum of digital transformation with the stability of essential real-world services. There are plenty of companies delivering profitability and business growth that fit this bill and can reward investors in the long run, but separating the wheat from the chaff can be stressful.
On that note, here are two top growth stocks that you might want to add to your portfolio the next time you go stock shopping.
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1. MercadoLibre
MercadoLibre (NASDAQ: MELI) operates a powerful multi-engine system that dominates e-commerce and financial services across Latin America. While it's known for its regional retail marketplace, its fintech division, Mercado Pago, has transformed into a crucial daily banking and payment utility for millions of historically unbanked consumers.
This allows the company to efficiently capture consumer dollars across both retail transactions and digital banking services. Its primary advantage is its extensive proprietary logistics and shipping network, which handles the vast majority of its deliveries throughout Latin America.
By controlling the entire system from checkout to doorstep delivery and payment processing, the company creates an unmatched barrier to entry for international competitors. As the digital economy matures across major underpenetrated markets like Brazil and Mexico, MercadoLibre's self-reinforcing network effects position it to capture escalating consumer spending.
Right now, MercadoLibre is in a costly race to maintain its market dominance against aggressively expanding competitors like Amazon, Shein, and Temu, the latter of which is owned by PDD Holdings. To defend its turf, the company is spending heavily on logistics, fulfillment, and free-shipping thresholds. Broader economic concerns (such as rising 10-year Treasury yields) have simultaneously reduced the present value of future earnings for many growth-focused tech and e-commerce companies.
However, MercadoLibre's heavy up-front reinvestment can help it cement its unrivaled logistics network across Latin America. That makes the current dip look like a compelling buying opportunity for long-term investors aiming to capture the region's undisputed e-commerce leader at a discount.
2. Eli Lilly
Eli Lilly (NYSE: LLY) is leading a major healthcare transformation driven by unprecedented global demand for its breakthrough metabolic treatments Mounjaro and Zepbound. The company has capitalized on a generational expansion in the diabetes and weight loss markets. Eli Lilly also maintains a diverse, high-value clinical pipeline with late-stage assets targeting major areas in oncology, immunology, and Alzheimer's disease.
The company's GLP-1 business, driven by its pair of blockbuster drugs, account for roughly two-thirds of the company's revenue and have pushed full-year forecasts to between $82 billion and $85 billion. The company has overtaken Novo Nordisk in international market share, a position strengthened by its newly approved oral weight-loss pill Foundayo.
The company also recently reported positive phase 3 results for retatrutide, an experimental once-weekly injection that targets multiple hormone receptors to drive even greater weight loss. A major milestone for broader adoption began as Medicare obesity coverage was launched through the Medicare GLP-1 Bridge program, providing eligible patients with access for $50 a month.
Eli Lilly is actively expanding employer-sponsored coverage to ensure wider access to its GLP-1 medications, and to meet soaring demand, it is pouring another $4.5 billion into its Lebanon, Indiana, manufacturing facility. The company is also using its GLP-1 profits wisely and has announced 10 acquisitions in 2026 alone, including infectious disease and vaccine developers and cancer biotechs.
Lilly even struck a wearable-tech partnership with Oura Ring through its prescription platform to help patients track biometric progress while on GLP-1 therapies. The stock has had an incredible run-up over the last few years, but investors who want to capitalize on this healthcare growth story might want to consider taking a slice of the action now.
Should you buy stock in Eli Lilly right now?
Before you buy stock in Eli Lilly, consider this:
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*Stock Advisor returns as of June 29, 2026.
Rachel Warren has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Eli Lilly, and MercadoLibre. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 Top Growth Stocks to Buy Right Now Without Hesitation

Key Points
MercadoLibre's stock has fallen due to rising competition.
Management said that online shopping in Latin America is just a fraction of what it is in the U.S.
The company has a long track record of delivering strong growth.
MercadoLibre (NASDAQ: MELI) has slumped over the last year, and it's clear why.
The company's profits have fallen as it's made investments to fend off competition and build the business for the long term.
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While investors should generally want to see businesses investing for the future, the profit decline is a reasonable concern. Several Wall Street analysts have downgraded the stock on the trend. UBS lowered its rating from buy to neutral at the end of April, opining that margins will remain under pressure and only start to recover in 2027.
The biggest challenge facing MercadoLibre seems to be competition in Brazil, its biggest market and where it gets half of its revenue from. In recent years, e-commerce platforms like Amazon, Sea Limited's Shopee, and PDD Holdings' Temu have made a push into Brazil, leading MercadoLibre to respond by lowering its threshold for free shipping, offering seller incentives to retain marketplace merchants, and investing in its logistics network.
That led to currency-neutral revenue growth of 49% in the first quarter, but investors instead focused on the decline in operating income from $763 million to $611 million.
1 reason not to fear competition
MercadoLibre has delivered strong growth for years, even in the aftermath of the pandemic, when virtually every e-commerce business was struggling.
But management shared one data point in the recent earnings report that shows that the fears about competition may be overblown. It said the average American makes 41 online purchases a year, while the average Latin American makes just seven. MercadoLibre's customers shop online slightly more at 11 times a year.
Management sees this as a huge growth opportunity, one that should have a secular tailwind as online shopping penetration grows. In that sense, competition isn't necessarily a bad thing, as encouraging more consumers to shop online could grow the pie for all e-commerce platforms.
The company also sees a similar opportunity in fintech, noting that in Mexico, more than half of the population relies on informal credit sources.
There's no guarantee that Latin America will reach U.S. levels of online shopping and credit card usage, but it's moving in that direction. As it gets easier to shop online and get credit, adoption in Latin America will grow.
That may be the best reason to invest in MercadoLibre. The company has built a large, interconnected empire in Latin America, a sprawling growth market, and will benefit from continued growth regardless of what happens with the competition.
Profits should eventually stabilize, and when they do, the stock should return to growth.
Should you buy stock in MercadoLibre right now?
Before you buy stock in MercadoLibre, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and MercadoLibre wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $398,052!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,181,688!*
Now, it’s worth noting Stock Advisor’s total average return is 892% — a market-crushing outperformance compared to 205% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 27, 2026.
Jeremy Bowman has positions in Amazon and MercadoLibre. The Motley Fool has positions in and recommends Amazon, MercadoLibre, and Sea Limited. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

1 Number MercadoLibre Investors Need to See

Key Points
Alibaba’s stock has plunged nearly 70% from its all-time high.
Macro, competitive, and regulatory challenges are compressing its valuation.
Investors shouldn’t underestimate the impact of the Trump Administration’s tariffs.
Alibaba (NYSE: BABA), China's largest e-commerce and cloud infrastructure company, set a record high of $307.84 on Oct. 27, 2020. That marked a 353% gain from its IPO price of $68 on Sept. 18, 2014. At the time, its core businesses were firing on all cylinders, and it was considered one of the safest ways to profit from China's economic growth.
But today, Alibaba's stock trades at about $95. Its stock collapsed amid fierce regulatory, competitive, and macroeconomic headwinds. China's antitrust crackdown on Alibaba's e-commerce business in 2021 eroded its defenses against competitors, and the post-pandemic slowdown caused many companies to rein in cloud spending. Inflation and higher oil prices also drove up its labor and logistics expenses, and it struggled to offset those rising costs.
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However, investors often overlook the impact of the Trump Administration's tariffs on Alibaba's long-term growth. At first glance, Alibaba seems insulated from those tariffs because it generates most of its revenue in China and doesn't rely heavily on cross-border trade. But if we dig deeper, we'll see that Alibaba isn't completely immune to those policy shifts.
How will Trump's trade policies impact Alibaba?
Alibaba generates about three-quarters of its e-commerce revenue from its Taobao and Tmall marketplaces in China. The rest comes from its overseas marketplaces (including Lazada in Southeast Asia, Trendyol in Turkey, and Daraz in South Asia) and its AliExpress cross-border marketplace, which connects its Chinese merchants to overseas buyers.
Only about a fifth of AliExpress' gross merchandise volume (GMV) comes from the United States. That's the only part of Alibaba's massive e-commerce business exposed to Trump's tariffs on Chinese goods and the suspension of the "de minimis" exemption that allowed duty-free entry for packages valued at under $800. Many cross-border marketplaces, like Shein and PDD's Temu, relied heavily on that loophole to ship cheap products from China to the U.S., but AliExpress is much less dependent on the U.S. market.
A more pressing risk is the Trump Administration's addition of Alibaba to the Department of Defense's list of "Chinese Military Companies". That designation bars Alibaba from acquiring high-end data center chips from Nvidia and prevents U.S. companies and government agencies from using its cloud infrastructure services. That pressure will prevent Alibaba from expanding its cloud business into the U.S. and many other Western countries, and force it to ramp up spending to develop its own domestic chips.
Lastly, Trump's tariffs on Chinese goods will create macroeconomic headwinds for China's economy. That pressure could hurt some of Alibaba's domestic merchants, which use its wholesale platform, Alibaba.com, to export products to U.S. businesses. It could also throttle consumer spending on its e-commerce platforms and enterprise spending on its cloud services.
Alibaba has other irons in the fire
Alibaba faces many near-term challenges, but it has plenty of irons in the fire. Its overseas marketplaces are growing much faster than its domestic ones, its cloud business is thriving as companies ramp up their spending on AI infrastructure services, and its Cainiao logistics business is still expanding and evolving into its third growth engine.
From fiscal 2026 (which ended this March) to fiscal 2029, analysts expect Alibaba's revenue and EPS to grow at CAGRs of 11% and 20%, respectively. Its stock still looks like a bargain at 17 times this year's earnings, since near-term concerns about macro and competitive challenges are weighing on its valuation, but those headwinds should eventually dissipate.
If you believe China's e-commerce and cloud markets will continue to grow regardless of the Trump Administration's unpredictable tariffs and trade policies, then it's still a great time to buy Alibaba's stock. It probably won't skyrocket this year, but it could outperform many other Chinese stocks as it's revalued as a reliable growth play again.
Should you buy stock in Alibaba Group right now?
Before you buy stock in Alibaba Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alibaba Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $382,359!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,201,390!*
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Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy.
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Key Points
MercadoLibre has steadily fallen over the last year due to concerns about falling profits.
Management says it's investing for the long term, rather than optimizing short-term margins.
It's still growing its top-line by nearly 50%.
MercadoLibre (NASDAQ: MELI) might not be a household name in the U.S., but Foolish investors know the Latin American e-commerce company as a standout on the stock market.
Since its 2007 IPO, MercadoLibre is up more than 5,000%, and it's built an Amazon-like network of businesses as it expands across Latin America, including in logistics, fintech, credit, and asset management. It's also added its Prime-like MELI+ membership program to help lock customers into its ecosystem.
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While MercadoLibre has continued to put up strong growth numbers, the stock has struggled over the last year, falling 36% in a steady decline.
That sell-off isn't unwarranted, as there are several reasons why investors have sold off MercadoLibre stock. Let's take a look at those challenges before discussing whether MercadoLibre is a buy.
What's ailing MercadoLibre?
The biggest reason for MercadoLibre's slide is that its profits are falling. In the first quarter, despite a 49% jump in revenue, operating income slipped from $763 million to $611 million.
The decline in profits has come primarily as the company has faced increased competition in Brazil from Sea Limited's Shopee, PDD Holdings' Temu, Amazon, and others. Brazil is MercadoLibre's biggest market, representing about half of its revenue.
To push back against competition, MercadoLibre lowered its free shipping threshold in Brazil, or the minimum order value to get free shipping, which helped accelerate GMV growth to a currency-neutral 38%.
Management first introduced free shipping in 2016, which had a similar headwind on profit margins, but paid off over the longer run, and it expects the lower free shipping threshold to do the same.
The company is also investing in cross-border trade for merchants in China and the U.S., giving them the option to work with the regional leader rather than Amazon or Temu. It's given sellers easier access to free shipping and other incentives, and it opened its first fulfillment center in China to improve relationships with merchants there.
MercadoLibre's margins are also compressing due to the growth of lower-margin businesses, including its first-party e-commerce business and its credit business, which saw a modest rise in delinquency rates in the first quarter.
The credit business introduces a new risk for MercadoLibre, but management sees it as a key driver for the company's two principal businesses, e-commerce and fintech. Its credit portfolio increased 87% to $14.6 billion in the first quarter, and it issued 2.7 million MercadoPago credit cards.
Is MercadoLibre a buy?
It's understandable why falling profits would send MercadoLibre stock lower. After all, this is a stock that has historically traded at a premium valuation priced for growth.
However, the overall picture of the company is that the margin compression is primarily the result of its own decision-making to prioritize long-term growth over short-term profits in a shifting competitive landscape. That's a smart move, and it's similar to the strategy that worked so well for Amazon.
While competition may be impacting MercadoLibre's performance, market share wars don't last forever, as the experience of industries like ridesharing and food delivery has shown. Additionally, MercadoLibre actually gained market share in the first quarter, and its structural advantages, like its MercadoEnvios logistics network, should ensure that it maintains its leadership in Brazil and elsewhere. Management also believes that there's a long runway for growth in Latin American e-commerce as the average Latin American makes just seven online purchases a year, compared to 41 for the average American, so there can be more than one winner here.
The margin pullback is likely temporary, and these investments should pay off. In the meantime, MercadoLibre continues to deliver strong revenue growth, up 49% in the first quarter, a sign of a healthy business despite the bottom-line woes.
With the e-commerce stock down nearly 40% from its peak, MercadoLibre is worth buying here. The long-term growth outlook still looks strong.
Should you buy stock in MercadoLibre right now?
Before you buy stock in MercadoLibre, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and MercadoLibre wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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Now, it’s worth noting Stock Advisor’s total average return is 883% — a market-crushing outperformance compared to 205% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 26, 2026.
Jeremy Bowman has positions in Amazon and MercadoLibre. The Motley Fool has positions in and recommends Amazon, MercadoLibre, and Sea Limited. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.