Sea Limited, together with its subsidiaries, engages in the digital entertainment, e-commerce, and digital financial service businesses in Southeast Asia, Latin America, rest of Asia, and internationally. It offers Garena digital entertainment platform for users to access mobile and PC online games, as well as eSports operations. The company also operates Shopee e-commerce platform, a mobile-centric marketplace that provides integrated payment and logistics infrastructure and seller services. In addition, it offers SeaMoney digital financial services to individuals and businesses, including offline and online mobile wallet, and payment processing services, as well as other offerings across credit, insurtech, and digital bank services under the ShopeePay, SPayLater, SeaBank, SeaInsure, and other digital financial services brands; and payment processing services for Shopee. The company was formerly known as Garena Interactive Holding Limited and changed its name to Sea Limited in April 2017. Sea Limited was incorporated in 2009 and is headquartered in Singapore.

Sea Limited

Key Points
Added 298,584 shares of Kanzhun Limited, raising stake by an estimated $57.48 million
Transaction equates to 0.7045% of CoreView's reportable AUM
Post-trade stake: 9,447,889 shares valued at $220.70 million
Kanzhun Limited now represents 24.27% of CoreView's AUM, making it the fund’s 1st-largest holding
What happened
According to a filing with the Securities and Exchange Commission dated November 13, 2025, CoreView Capital Management Ltd bought 298,584 additional shares of Kanzhun Limited (NASDAQ:BZ). The post-trade position totals 9,447,889 shares, valued at $220.70 million as of September 30, 2025. This action brought Kanzhun Limited to 24.27% of CoreView’s reportable U.S. equity assets.
What else to know
CoreView increased its stake in Kanzhun Limited, which now accounts for 24.27% of 13F AUM
Top holdings after the filing:
NASDAQ: BZ: $220.70 million (24.27% of AUM)
NASDAQ: JD: $216.79 million (23.9% of AUM)
NASDAQ: TCOM: $145.03 million (16.0% of AUM)
NYSE: SE: $131.60 million (14.5% of AUM)
NYSE: TAL: $123.17 million (13.6% of AUM)
As of November 13, 2025, shares of Kanzhun Limited were priced at $20.88, up 51.4% over the past year, outperforming the S&P 500 by 39.93 percentage points
Kanzhun Limited reported trailing twelve months revenue of $1.09 billion and net income of $304.08 million through June 30, 2025
The position was previously 21.3% of the fund's AUM as of the prior quarter
Company overview
Market Capitalization
9.73 billion
Revenue (TTM)
$8.01 billion
Net Income (TTM)
$2.94 billion
Price (as of market close 2025-11-13)
$20.88
Company snapshot
Kanzhun Limited operates an online recruitment platform in China that connects job seekers with employers. The company operates BOSS Zhipin, an online recruitment platform connecting job seekers with employers in China; primary revenue is generated from recruitment-related services.
Kanzhun Limited monetizes through fees paid by enterprises and corporations for recruitment listings, premium access, and value-added services on its digital platform.
The company serves a broad base of corporate clients, ranging from small and medium-sized enterprises to large organizations seeking talent acquisition solutions in the Chinese labor market.
Foolish take
CoreView Capital increased its stake in Kanzhun even after the stock had already risen sharply. Following the addition, Kanzhun accounts for roughly a quarter of the fund’s reported U.S. equity holdings, placing it among CoreView’s largest positions. The increase came despite strong recent performance, indicating the firm continues to view Kanzhun as a core holding rather than a position to harvest after a rally.
Kanzhun runs BOSS Zhipin, which is closer to a live hiring marketplace than a job board. Employers pay to reach candidates and manage the recruiting flow within the platform, and the product works best when response times are fast and match quality remains high. That creates a simple operating tension investors should keep in mind: the platform’s value rises with activity and engagement, but the company still has to keep recruiter ROI strong enough that employers keep paying even when hiring slows. The reason Kanzhun stands out is that it has already shown it can scale this model into real profits, with trailing revenue of about $1.09 billion and net income of about $304 million through June 30, 2025.
For investors, Kanzhun’s next chapter is about whether profitability holds up when the hiring tape gets choppy. Enterprise spending behavior and margin stability will matter more than headline job growth. If Kanzhun keeps posting clean earnings without needing a hiring boom to do it, the stock will justify being treated as a durable platform business rather than a short-cycle China rebound trade.
Glossary
AUM: Assets Under Management; the total market value of investments a fund or manager oversees.
13F: A quarterly SEC filing required from institutional investment managers to disclose U.S. equity holdings.
Reportable AUM: The portion of a fund's assets that must be disclosed in regulatory filings, such as the 13F.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Stake: The ownership interest or shareholding a fund or investor has in a company.
Filing: An official document submitted to a regulatory authority, such as the SEC, reporting financial or ownership information.
Outperforming: Achieving a higher return or growth rate than a specified benchmark or index.
Premium access: Paid, enhanced features or services offered on a digital platform beyond the standard offering.
Value-added services: Additional services provided for a fee that enhance the core offering of a company.
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Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Sea Limited. The Motley Fool recommends JD.com. 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.

Kanzhun’s Earnings Momentum Highlights a Shift Inside China’s Job Market

Key Points
Maintaining a watch list of high-quality stocks is a good way for investors to keep track of potential opportunities.
The new year is a good time to think about which stocks to scoop up at a discount if there is a market sell-off at some point in the future.
The four stocks at the top of my watch list are from industries like e-commerce, software, real estate, and artificial intelligence.
Preparation is key in investing. The stock market doesn't rise in a straight line, but "buying the dip" during sell-offs is tricky if you don't already know where you want to put your money. That's why it's useful to keep a watch list of high-quality stocks to buy if a good opportunity arises.
Here are the four stocks sitting at the top of my watch list for 2026.
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1. Sea Limited
Sea Limited (NYSE: SE) is based in Singapore, and it's often referred to as the "Amazon of Southeast Asia." Its three business units make it a triple threat in the digital economy:
Shopee is Southeast Asia's biggest e-commerce platform. It processed 10 billion orders worth $90.6 billion during the first three quarters of 2025.
Monee is Sea's digital financial services platform. It lends money to Shopee merchants to help them grow their businesses, and it also offers "buy now, pay later" loans to consumers.
Garena is one of the world's top game development studios. It's responsible for global smash-hits like Free Fire and Call of Duty: Mobile.
Sea is on track to grow its revenue by over 30% in 2025, its fastest pace in four years. But its stock is currently down 35% from its 52-week high on concerns about the financial health of consumers worldwide. That dip could be a great entry point for long-term investors.
2. Workiva
Large organizations use dozens of digital applications in their day-to-day operations, creating headaches for managers who need to pull critical data from all of them to compile reports for executives or regulators.
Workiva (NYSE: WK) developed a platform that plugs into every major digital storage, productivity, and accounting app, allowing managers to aggregate all of their important data. From there, Workiva offers a suite of ready-made templates to help managers rapidly compile reports and produce regulatory filings.
Workiva is on track to deliver a record amount of revenue in 2025 thanks to accelerating growth in some of its largest customer cohorts. Nevertheless, its stock is down 20% on the year, which might spell opportunity for investors. This stock doesn't get much attention from the analyst community -- The Wall Street Journal tracks just 13 analysts who cover it. However, the overwhelming majority of them rate it a buy, and none of them recommends selling.
3. Douglas Elliman
The Federal Reserve cut its benchmark interest rate three times in 2024, and then three more times in 2025. The CME Group's FedWatch tool predicts there will be two more 25 basis point reductions in 2026. That would be good news for the housing market, which has been torpid since 2023, when mortgage rates surged to their highest levels in 20 years.
Douglas Elliman (NYSE: DOUG) is America's fifth-largest residential real estate brokerage, and it's one of the leading luxury market operators in California, New York, Texas, and elsewhere. Despite the sluggish housing market, the company's 6,600 agents sold $30.1 billion worth of real estate during the first three quarters of 2025, putting them on track to surpass their 2024 sales total of $36.4 billion.
Douglas Elliman stock has rocketed higher by 46% in 2025, but it's still trading at a steep discount to the all-time high it hit on Dec. 30, 2021 -- the day of its IPO. And on a price-to-sales basis, it's also much cheaper than Compass, one of its chief rivals. If lower interest rates boost the housing market in 2026, I think this stock could have another big year. I already own shares, but I'll be looking for opportune times to buy more.
4. DigitalOcean
I think artificial intelligence (AI) will remain the center of attention for investors during 2026, but the best returns might not come from the obvious picks like Nvidia or Amazon. Instead, I've got my eye on DigitalOcean (NYSE: DOCN), which provides cloud computing and AI services exclusively to small and mid-sized businesses (SMBs).
DigitalOcean operates data centers filled with GPUs from top suppliers like Nvidia and Advanced Micro Devices, which it rents to SMBs that use it to develop AI software. The company also built a cloud-based workspace called Gradient, where SMBs can access tools to accelerate their progress, including ready-made large language models from leading third parties like Anthropic.
DigitalOcean's AI-related revenues have more than doubled year over year for five straight quarters, so the company is entering 2026 with incredible momentum. But its stock is still quite cheap, which is why it's near the top of my watch list.
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Anthony Di Pizio has positions in Douglas Elliman. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, DigitalOcean, Nvidia, Sea Limited, and Workiva. The Motley Fool recommends CME Group. 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.

4 Super Stocks at the Top of My Watch List for 2026

Key Points
MercadoLibre has fallen more than 20% from its peak six months ago.
Investors are worried about pressure from competitors.
The company still has a long runway of growth in front of it.
Heading into 2026, the stock market is coming off one of its best three-year runs in history, up roughly 75%.
The AI boom that kicked off with the Nov. 2022 launch of ChatGPT has led to some concerns about a bubble in AI, and the S&P 500 is now trading at a historically high price-to-earnings ratio. In such an environment, finding a growth stock isn't so easy. Ideally, investors will want to find a company that not only offers strong long-term growth potential but also trades at a reasonable valuation.
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One such stock that fits the bill is MercadoLibre (NASDAQ: MELI), the Latin American e-commerce leader, whose business covers verticals like fintech and logistics, and if you're looking to invest $2,000, then you have just enough to afford one share as the stock is trading at $1,998 a share as of Dec. 26. MercadoLibre has already made early investors rich. Keep reading to see why it still has a lot of growth potential.
A track record of success
MercadoLibre has long been a top growth stock on the market. In fact, since its 2007 IPO, the stock is up 6,950%, which is based on its closing price from that day. However, based on its $18 IPO price, the stock has returned more than 100 times to IPO buyers. The chart below shows the performance.
MercadoLibre has delivered those kinds of results through consistently high revenue growth and a business model that has reinforced the company's competitive advantages as it's scaled up. Much like Amazon, the company has layered on complementary businesses such as MercadoPago, its fintech business, MercadoEnvios, its logistics business, and MercadoCredito, a financing business, to find success.
However, as you can see from the chart below, MercadoLibre is now down 23% from its peak in June as the stock has struggled.
Among the investor concerns that have weighed on the stock are increasing competition from the likes of Amazon, Temu, and Sea Holdings' Shopee. That's led to margin compression at MercadoLibre as it's had to offer shipping discounts in order to protect its market share.
In the third quarter, MercadoLibre's revenue jumped 39% to $7.4 billion, which marked its 27th consecutive quarter with revenue growth above 30%. However, its operating margin fell to 9.8% due to investments like lowering the free shipping threshold in Brazil, ramping up spending on the first-party e-commerce business, investing in social commerce, and expanding its credits business.
Why MercadoLibre is a top buy for 2026
The margin and competitive concerns facing MercadoLibre are valid, but they aren't entirely new. Amazon has been operating in Brazil for years, as has Shopee, though both companies are making a renewed push in the market.
However, MercadoLibre's consistently strong revenue growth and advantages include its MELI+ membership program, which offers a package of benefits similar to Amazon Prime.
There's also enough room in the market for more than one company to be successful. Management said that e-commerce penetration rates are still in just the mid-teens in Latin America, and even lower in fintech, giving it a long runway of growth as it can take market share from traditional forms of retail and banking.
After the recent pullback, the stock has also gotten more affordable, trading at a price-to-earnings ratio of 49. MercadoLibre has bounced back from adversity before, and the business is strong enough to recover again. Wall Street, meanwhile, expects margins to expand in 2026 as products like its credit card in Brazil begin to mature.
Overall, taking advantage of the recent sell-off in MercadoLibre looks like a smart move as the Latin American superstar still has a long growth path ahead of it.
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 $504,994!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,156,218!*
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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.

The Ultimate Growth Stock to Buy With $2,000 Right Now

Sea Limited SE and Take-Two Interactive TTWO are key players in the global gaming industry, though they differ in scale and focus. Sea Limited’s gaming arm, Garena, is best known for the mobile hit Free Fire, which drives engagement across emerging markets. Take-Two, meanwhile, owns premium franchises like Grand Theft Auto, NBA 2K and dominates console, PC, and mobile platforms.
Industry report forecasts the mobile gaming market to reach $256.2 billion by 2030, witnessing a 10.2% CAGR, emphasizing the long-term growth runway supporting both stocks. Both companies are well-positioned to capitalize on this trend through scalable monetization models that combine in-game recurring spending with new title launches to accelerate top-line growth.
Let us delve deeper to determine which is a better investment now.
The Case for Sea Limited Stock
Sea Limited’s digital entertainment arm, Garena, continues to face structural headwinds despite a near-term rebound. While the third quarter of 2025 marked Garena’s strongest performance since 2021, the business remains heavily dependent on a single franchise, Free Fire, leaving the business exposed to any slowdown in player engagement or monetization trends.
The company’s IP-led live events, such as Squid Game and Naruto Shippuden Chapter 2, boosted bookings but also increased royalty and platform fees, pushing digital entertainment's cost of revenue up nearly 44% year over year, which raises concerns about margin stability. The company’s higher payment channel fees and royalties tied to third-party intellectual property collaborations are pressuring long-term growth.
The recent operating performance has been strong. In the third quarter of 2025, Garena’s bookings surged 51% year over year to $840.7 million, adjusted EBITDA climbed 48%, and paying users rose 31%, lifting the paying ratio to 9.8%.
However, Garena’s ability to consistently launch new global hits remains uncertain and long-term visibility beyond Free Fire appears limited. Importantly, SE has not executed any material gaming acquisitions, increasing dependence on internal development and third-party IP partnerships for growth.
The Zacks Consensus Estimate for SE’s first-quarter 2026 earnings is pegged at $1.24 per share, down by 8.1% over the past 30 days. Similarly, the consensus mark for full-year 2026 earnings has been revised down to $5.64 per share, indicating a 3.3% decline over the past 30 days.
Image Source: Zacks Investment Research
The Case for Take-Two Interactive Stock
Take-Two Interactive enters fiscal 2026 from a position of strength, supported by one of the deepest franchise portfolios in global gaming. In the second quarter of fiscal 2026, TTWO delivered record net bookings of $1.96 billion, up 33% year over year, significantly exceeding guidance and prompting management to raise the full-year net bookings outlook to $6.4-$6.5 billion. Growth was broad-based across console and mobile, with recurrent consumer spending rising 20% and accounting for roughly 73% of bookings, highlighting the durability of Take-Two’s live-services model.
Key strengths include industry-leading IP such as Grand Theft Auto, NBA 2K, Red Dead Redemption, Borderlands, and Zynga’s mobile portfolio. NBA 2K26 posted a record launch with over 5 million units sold, a strong premium edition mix, and 45% growth in recurrent spending, while mobile titles like Toon Blast and Match Factory! delivered double-digit growth. The future pipeline is remarkably strong, featuring Grand Theft Auto VI (Nov 2026), Judas, CSR 3, Project ETHOS, Top Goal, and the next BioShock, positioning the company for a step-change in scale beyond fiscal 26.
Nonetheless, downside risks persist. The delay of GTA VI into fiscal 2027 will further weigh on subsequent revenue trends, while high development costs, marketing spend, and stock-based compensation continue to pressure profitability.
The Zacks Consensus Estimate for TTWO’s fiscal third and fourth quarters 2026 earnings remain unchanged at 83 cents and 41 cents, respectively, over the past 30 days. TTWO has delivered consistently strong quarterly performance. Its bottom line beat the Zacks Consensus Estimate in each of the trailing four quarters, the average positive surprise being 53.41%.
Image Source: Zacks Investment Research
Price Performance of SE and TTWO
Over the past six months, Sea Limited shares have declined 20.7%, compared with Take-Two Interactive’s return of 4.2%, underscoring a clear divergence in market performance. Sea Limited’s stock performance has been tempered by fundamental pressures within its digital entertainment segment. A highly competitive gaming landscape has intensified content and marketing spending, while rising royalty and platform fees have driven a higher cost of revenue. In addition, macroeconomic headwinds, including currency volatility and softer economic conditions across key emerging markets, have further pressured results. In contrast, Take-Two's cost structure is more stable, and development cycles are longer.
Stock Performance: SE vs. TTWO
Image Source: Zacks Investment Research
SE vs. TTWO: Key Performance Comparison
The technical indicator is also bearish for Sea Limited as its shares trade below the 50-day moving average, which indicates limited upside in the near-term momentum for the stock.
SE Trades Below 50-Day SMA
Image Source: Zacks Investment Research
Comparatively, Take-Two Interactive’s shares are trading above the 50-day moving average, indicating a bullish trend in the near term.
TTWO Trades Above 50-Day SMA
Image Source: Zacks Investment Research
Conclusion
Sea Limited’s mobile-driven rebound offers modest upside, but its gaming growth remains concentrated around Free Fire, with rising costs and execution risk limiting durability. Take-Two Interactive, by contrast, benefits from a diversified portfolio of premium franchises, strong recurrent consumer spending, consistent earnings outperformance, and a deep multi-year pipeline led by GTA VI. Greater earnings visibility, scale advantages, and stronger fundamentals position Take-Two Interactive as the superior long-term growth stock.
Compared with Take-Two Interactive’s Zacks Rank #3 (Hold), Sea Limited’s Zacks Rank #5 (Strong Sell) suggests lower analyst confidence in near-term performance. Investors can observe Take-Two for an attractive entry point in the near term and stay away from Sea Limited stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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.

SE vs. TTWO: Which Gaming Stock Offers Better Growth Opportunity?

MercadoLibre MELI is positioning Gross Merchandise Volume as the primary lever for extending its growth trajectory across Latin America. The company's decision to lower Brazil's free shipping threshold from R$79 to R$19 represents a structural shift toward capturing everyday, lower-ticket purchases that represent a large pool of latent GMV in a region where e-commerce penetration remains in the mid-teens. This approach targets transaction frequency expansion rather than relying on episodic demand spikes or rising average order values.
Early indicators suggest this approach could support continued GMV expansion. The lower shipping threshold drove sold items growth to 42% year over year in Brazil during the third quarter of 2025, while new listings in the R$19-R$79 price band tripled year over year. The combination of increased purchase frequency and expanded assortment depth in price-sensitive categories indicates that both sides of the marketplace are responding to the structural incentive change. If buyer engagement and seller listings continue scaling together, GMV growth may become increasingly self-reinforcing.
Visibility into the near-term trajectory remains constructive. The Zacks Consensus Estimate for MercadoLibre’s fourth-quarter 2025 GMV is pegged at $19.04 billion, indicating 31% year over year growth and a sequential acceleration of 15% from the third-quarter level of $16.5 billion. Such an outlook implies rising transaction density into the peak seasonal period, supporting the view that GMV momentum could extend beyond a single quarter. The company's expanding logistics infrastructure and improving unit economics in fulfilment operations provide capacity headroom to absorb higher transaction volumes without proportional cost increases.
However, execution risks remain as MercadoLibre navigates the tension between GMV growth and profitability. Direct Contribution margins compressed in Brazil as free shipping subsidies outpaced immediate revenue gains, while intensifying competition may require sustained promotional investments. Whether the company can maintain elevated transaction intensity without incremental cost pressure will ultimately determine if GMV momentum can drive further stock upside.
MELI Faces Intensifying Competition
Competition in Latin American e-commerce remains intense, with Amazon AMZN and Sea Limited SE pursuing volume-led strategies in overlapping markets. Amazon continues to emphasize logistics investments and Prime-led fulfilment to encourage repeat purchasing, though its regional presence remains more selective than MercadoLibre’s. Sea Limited, through Shopee, has leaned more heavily on shipping subsidies to stimulate GMV in price-sensitive segments. As Amazon and Sea Limited compete for transaction share, the durability of MercadoLibre’s GMV momentum will hinge on its ability to sustain transaction growth efficiently amid differing competitive playbooks.
MELI’s Share Price Performance, Valuation and Estimates
MELI shares have declined 21% in the past six months, underperforming the Zacks Internet-Commerce industry and the Zacks Retail-Wholesale sector’s increase of 5.6% and 4.7%, respectively.
MELI’s Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MELI stock is currently trading at a forward 12-month Price/Sales ratio of 2.77X compared with the industry’s 2.1X. MELI has a Value Score of C.
MELI Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MELI’s fourth-quarter 2025 earnings is pegged at $11.66 per share, down by 1.6% over the past 30 days, indicating a 7.53% year-over-year decline.
MercadoLibre, Inc. Price and Consensus
MercadoLibre currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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.

Can MercadoLibre's GMV Momentum Drive Further Upside in the Stock?

Key Points
PDD once grew rapidly, but its high-growth days may be over.
MercadoLibre is growing faster, is better diversified, and has a wider moat.
MercadoLibre’s stock is pricier, but it deserves its premium valuation.
PDD (NASDAQ: PDD), China's third-largest e-commerce company after Alibaba (NYSE: BABA) and JD.com (NASDAQ: JD), went public on July 26, 2018 at $19 per ADS. On Feb. 17, 2021, its stock closed at its all-time high of $202.82.
That rally was fueled by the explosive growth of its discount marketplace, its market share gains against Alibaba and JD, and the expansion of its online agricultural business. It expanded by selling cheaper products in China's lower-tier cities, encouraging its shoppers to team up to score bigger bulk discounts, and bypassing supermarkets by directly connecting farmers to consumers. It also launched a cross-border marketplace, Temu, to connect its Chinese merchants to overseas buyers.
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From 2018 to 2024, PDD's revenue grew at a CAGR of 76%. It also turned profitable in 2021, and its net income increased at a CAGR of 144% over the following three years. Those stunning growth rates made it one of the fastest-growing e-commerce companies globally.
But from 2024 to 2027, analysts expect its revenue and net income to grow at a more modest CAGR of 12% and 7%, respectively, as its business matures. It's facing stiffer competition from Alibaba and China, while the unpredictable tariffs are throttling Temu's overseas expansion.
PDD's stock has pulled back to about $110 and appears to be a bargain at ten times next year's earnings, but its high-growth days might be over. The persistent trade tensions between the U.S. and China could also continue to compress its valuations. Instead of betting on PDD's turnaround next year, investors should take a closer look at another high-growth e-commerce company, MercadoLibre (NASDAQ: MELI), which may have more upside potential.
How fast is MercadoLibre growing?
MercadoLibre, founded in Argentina in 1999 and currently headquartered in Uruguay, is the largest e-commerce company in Latin America. It established a first-mover's advantage by localizing its marketplace for different countries, expanding its logistics network across challenging terrain, and securing its customers with its Mercado Pago digital payments platform.
MercadoLibre now operates its marketplace across 19 Latin America countries, but it generates most of its revenue in Brazil, Argentina, and Mexico. Its Mercado Pago platform has also expanded and evolved into a full-fledged fintech ecosystem with its own digital wallet, credit platform (Mercado Crédito), crypto trading tools, and banking services.
From 2018 to 2024, MercadoLibre's revenue grew at a CAGR of 56%. It also turned consistently profitable in 2021, and its net income grew at a CAGR of 184% over the following three years. At the end of 2024, it served over 100 million annual unique active buyers and 60 million fintech monthly active users. However, that only represents a fraction of the 668 million people (including 451 million adults) who live across the Latin American and Caribbean region.
MercadoLibre is saturating its three largest markets, but it's still expanding in smaller and higher-growth markets, such as Chile, Colombia, Peru, and Ecuador. According to Grand View Research, Latin America's e-commerce market is expected to continue expanding at a robust CAGR of 17.4% from 2024 to 2030, as the region's income levels and internet penetration rates rise.
Why could MercadoLibre have more upside potential than PDD?
From 2024 to 2027, analysts expect MercadoLibre's revenue and net income to grow at a CAGR of 29% and 62%, respectively. That growth should be driven by its sales of more profitable products on its first-party marketplace and the expansion of its third-party, higher-margin credit and advertising businesses. Its improving scale should continue to dilute its logistics, payment processing, and marketing costs per order.
MercadoLibre should also profit from its competitors' setbacks. Americanas, its biggest rival in Brazil, struggled with a disastrous accounting scandal over the past two years. Singapore's Sea Limited (NYSE: SE), which launched its Shopee marketplace in Latin America in 2019, shut down most of those regional marketplaces over the following six years. Amazon (NASDAQ: AMZN) also struggled to expand its presence in Latin America over the past decade.
MercadoLibre's business is gradually maturing, but it still has more upside potential than PDD. It might seem a lot pricier at 34 times next year's earnings, but its stronger growth, broader diversification, and wider moat all justify that higher valuation.
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Leo Sun has positions in Amazon and MercadoLibre. The Motley Fool has positions in and recommends Amazon, MercadoLibre, and Sea Limited. The Motley Fool recommends Alibaba Group and JD.com. 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 Growth Stock I'd Buy Before PDD In 2026

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Monday, shares of Sea Ltd (Symbol: SE) entered into oversold territory, hitting an RSI reading of 29.5, after changing hands as low as $121.325 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 49.0. A bullish investor could look at SE's 29.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of SE shares:
Looking at the chart above, SE's low point in its 52 week range is $99.50 per share, with $199.30 as the 52 week high point — that compares with a last trade of $121.56.
Also see:
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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.

Sea Becomes Oversold

Sea Limited SE shares have lost 33.5% in the past three months, lagging the broader Zacks Computer & Technology sector’s growth of 9% and the Zacks Internet - Software industry’s decline of 10%.
The decline in share price is caused by weak logistics and value-added services revenues, indicating high competition and rising costs. Intense e-commerce competition continues to put pressure on margins. Currency fluctuations and softer economic conditions in emerging markets also hurt results.
SE Underperforms in Past 3 Months
Image Source: Zacks Investment Research
Now the question arises: Should investors continue to hold the stock, or exit before losses deepen? Let’s assess the situation more thoroughly.
Competitive Landscape Remains a Key Headwind
The competitive landscape is becoming increasingly challenging for Sea Limited as rivalry across e-commerce, digital entertainment and digital financial services continues to intensify across its key markets.
Shopee remains a leading platform but faces sustained pressure from Lazada, owned by Alibaba BABA, as Alibaba competes aggressively on pricing, logistics speed, seller incentives and technological capabilities. This forces Shopee to continue heavy spending on subsidies, delivery infrastructure and marketing to defend market share, raising costs and limiting margin expansion despite healthy GMV growth.
In digital financial services, Monee faces strong competition from regional fintech ecosystems and super-apps like Grab Holdings GRAB. Originally a ride-hailing and delivery platform, Grab Holdings has expanded aggressively into digital payments and financial services, positioning it as a direct, cross-segment competitor to SE’s fintech and digital-payments business. This rivalry increases user acquisition costs and regulatory and credit risk exposure. At the same time, merchant advertising and content-led commerce are becoming more competitive, with Alibaba and Grab Holdings strengthening their seller tools and media capabilities, increasing pressure on ad spend and engagement.
In the global gaming market, Garena competes directly with industry leaders, including Take-Two Interactive TTWO. With franchises such as Grand Theft Auto, Red Dead Redemption and NBA 2K, Take-Two Interactive sets high standards for content quality and engagement. Even with strong titles, Take-Two Interactive’s reliance on a few releases creates risk. Overall, Southeast Asia and Latin America remain fragmented and highly competitive markets where leadership is constantly challenged.
Rising Cost Structure Emerges as a Key Risk
Rising cost structure is emerging as a significant risk for Sea Limited as expense growth continues and, in some cases, even outpaces revenue expansion. In the third quarter of 2025, the total cost of revenues rose more than 37% year over year, driven largely by higher logistics expenses in e-commerce as order volumes expanded and delivery services scaled across Southeast Asia.
Cost pressures are also evident in other segments. Digital entertainment saw higher payment channel fees and increased royalties tied to third-party IP collaborations, while digital financial services faced rising server, hosting and collection-related costs as the loan book expanded rapidly.
Additionally, sales and marketing expenses increased nearly 31% year over year, reflecting intensifying competition and ongoing investments to sustain growth, which could constrain margin expansion over the long term.
Sea Limited’s Earnings Estimates Trend Down
The Zacks Consensus Estimate for SE’s fourth-quarter 2025 earnings is pegged at 94 cents per share, down by 6.9% over the past 30 days.
Likewise, the consensus mark for first-quarter 2026 earnings has been revised down to $1.35 per share, reflecting a 9.4% decline over the past 30 days.
SE has struggled to deliver consistently strong quarterly performance. Its bottom line missed the Zacks Consensus Estimate in each of the trailing four quarters, the average negative surprise being 16.09%.
Image Source: Zacks Investment Research
Rich Valuation Limits Upside Potential
Sea Limited's stock appears to be overvalued at the moment, as indicated by its Zacks Value Score of F. Its trailing 12-month price-to-book (P/B) ratio of 7.33X stands well above the industry average of 6.0X, indicating that the stock is priced at a significant premium to its underlying book value.
This elevated valuation is largely driven by strong investor optimism around growth in terms of Shopee’s GMV expansion and a sharp rebound in Garena’s bookings. However, such optimism increases downside risk, since execution challenges, margin headwinds, or slower growth may lead to multiple contractions.
SE shares also look overvalued compared with key Southeast Asian competitors. Alibaba, Grab Holdings and JD.com trade at valuation multiples of 2.44X, 3.21X and 1.00X, respectively.
Price/Book Ratio
Image Source: Zacks Investment Research
Here’s Why You Should Sell SE Stock Now
Given mounting competitive pressures, rising costs that are outpacing revenue growth, downward earnings revisions and a stretched valuation, Sea Limited’s risk-reward profile has weakened significantly. Persistent margin pressure in Shopee, intensifying fintech and gaming competition and consistent earnings misses further cloud near-term visibility. With modest upside potential and heightened downside risks in a challenging macro environment, SE no longer presents a compelling investment case.
SE currently carries a Zacks Rank #5 (Strong Sell), suggesting that investors should stay away from this stock right now.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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.

Sea Limited Slides 33% in 3 Months: Time to Exit or Hold the Stock?

Sea Limited’s SE digital entertainment arm, Garena, continues to deliver strong financial results, but its growth profile is becoming increasingly concentrated around select titles. A significant portion of Garena’s revenue momentum remains tied to Free Fire, exposing the business to potential long-term risk if player engagement weakens.
In the third quarter of 2025, Digital Entertainment bookings surged 51% year over year, marking Garena’s best performance since 2021. Management clearly attributed this strength to Free Fire, which benefited from blockbuster in-game collaborations such as Squid Game and NARUTO SHIPPUDEN Chapter 2. These events generated engagement, with the Squid Game “Red Light, Green Light” challenge being played over 300 million times, making it clear that event-led monetization is now at the foundation of revenue growth.
However, there are risks to this approach. Revenue growth is coming mainly from higher spending per user, as player growth remains limited. At the same time, Digital Entertainment's cost of revenues jumped nearly 44% year over year, driven by higher payment fees and IP-related royalties from Free Fire’s live-operations strategy.
Garena has also struggled to create or release an internal hit that matches the scale of Free Fire, especially when compared to peers like Tencent and NetEase with deeper title pipelines. Recent publishing launches such as EA SPORTS FC Mobile, Digimon Adventure and the upcoming Jujutsu Kaisen collaboration in January 2026 support diversification, but Free Fire still dominates the revenue base, limiting growth diversification.
SE Battles Major Players in Gaming Market
Sea Limited faces intensifying gaming-sector competition from major publishers such as Take-Two Interactive TTWO and platform leaders like Roblox RBLX.
Take-Two Interactive is one of the industry’s most established and diversified game publishers, competing with Sea Limited through its powerful portfolio spanning Grand Theft Auto, Red Dead Redemption, NBA 2K, Borderlands and Civilization. TTWO’s strong console and PC presence, reinforced by Zynga’s growing mobile contribution, gives it a broad multi-platform reach. With major AAA titles ahead — most notably GTA VI — and expanding live-service ambitions, Take-Two poses a significant competitive threat. In second-quarter fiscal 2026, game revenues rose 33% year over year to $1.64 billion.
Roblox competes with Sea Limited by leveraging its platform-first, user-generated content model, which consistently draws younger audiences seeking creativity and variety. Roblox's freemium structure and massive scale — 50 million DAUs and record-breaking concurrent player counts — strengthen its appeal. Supported by advanced AI-powered safety systems that enhance trust and retention, Roblox continues to scale rapidly. These strengths collectively make Roblox a significant competitive force against Sea Limited in the gaming landscape.
SE’s Price Performance, Valuation & Estimates
Sea Limited shares have risen 17.4% in the past year compared with the broader Zacks Computer & Technology sector’s growth of 26.9% and the Zacks Internet - Software industry’s return of 3.4%.
SE’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation perspective, SE stock is currently trading at a forward 12-month price-to-earnings ratio of 24.35, lower than the sector’s 29.07X. SE carries a Value Score of F.
SE’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SE’s 2025 earnings is pegged at $3.60 per share, which decreased by 6.2% over the past 30 days. This marks a strong 114.29% surge in earnings compared to 2024.
Image Source: Zacks Investment Research
SE stock currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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.

Does SE's Heavy Free Fire Dependence Pose a Risk to Garena's Growth?

MercadoLibre MELI shares have declined 15.6% over the past six months, underperforming the Zacks Retail-Wholesale sector and the Zacks Internet-Commerce industry’s growth of 4.3% and 5.2%, respectively.
The decline in MELI's performance reflects investor concerns over margin compression from aggressive strategic investments, elevated competitive intensity and macroeconomic volatility across Latin American markets. The stock's pullback signals growing caution toward the company's near-term profitability trajectory and questions about whether current spending levels represent a sustainable path to market leadership or an increasingly expensive arms race with diminishing returns.
MELI Stock's Performance
Image Source: Zacks Investment Research
Investment Cycle Pressures Near-Term Profitability
MELI's operational strategy is prioritising market share expansion over near-term profitability, resulting in meaningful volume acceleration while pressuring margins across both the commerce and fintech segments. Lowering Brazil’s free-shipping threshold unlocked record items-sold growth in the third quarter of 2025, yet operating margin slipped to 9.8% down 70 basis points year over year, as logistics and fulfilment costs grew faster than revenue. The Zacks Consensus Estimate for fourth-quarter 2025 revenues is pegged at $8.45 billion, up 39.5% year over year, implying that top-line momentum will continue even as margins may stay constrained.
Fintech spending adds further pressure, with early-stage credit card issuance across Brazil, Mexico and Argentina weighing on returns. In the third quarter, Net Income Margin fell to 5.7%, down from 7.5% last year, while Net Interest Margin After Losses held at 21%, reflecting higher funding costs and the impact of expanding younger credit cohorts. Together, these metrics indicate that MELI is in a margin-dilutive phase of its credit expansion, where portfolio growth outpaces monetisation. The Zacks Consensus Estimate for fourth-quarter total payment volume is pegged at $81.67 billion, up 38.6% year over year, pointing to continued activity but also a larger credit base to absorb. These dynamics indicate that MELI’s investment cycle remains in the cost-intensive phase, limiting the pace at which profitability can stabilise.
Competitive Pressures Limit Premium Valuation Potential
The Latin American e-commerce and fintech markets have become increasingly crowded as global and regional platforms reinforce their presence. Amazon AMZN continues expanding its fulfillment network and product breadth across Brazil and Mexico, using its global scale and Prime ecosystem to intensify price and delivery competition. This dynamic forces MELI to sustain heavier spending on free shipping, logistics and conversion-driving incentives to defend its lead. Sea Limited SE, through Shopee, remains aggressive in value-driven categories, backed by the financial capacity to extend promotional cycles and deepen seller subsidies. eBay EBAY also retains influence in cross-border commerce, offering merchants an established global marketplace that competes with MELI’s seller ecosystem.
MELI trades at a forward 34.91x price-to-earnings multiple, well above the Zacks Industry average of 24.37x and the broader sector multiple of 24.95x. This valuation appears elevated compared to Amazon’s 24.37x, Sea Limited’s 30.8x and eBay’s 17.4x. The premium embeds significant expectations for sustained revenue growth and eventual margin recovery, leaving limited room for execution missteps or competitive intensification that could undermine profitability assumptions.
MELI’s P/E F12M Ratio
Image Source: Zacks Investment Research
Expanding User Base Offers Monetization Potential
MELI's heavy investment spending is pressuring margins, yet the strategy is successfully expanding the user base and ecosystem engagement. The company's initiatives to reduce friction points, including lower free shipping thresholds, expanded delivery coverage and enhanced payment flexibility, are attracting users despite elevated costs. During the third quarter of 2025, unique active buyers grew 26% year over year to 76.8 million. Monthly active fintech users increased 29% to 72.2 million, while assets under management surged 89% to $15.1 billion.
The critical question is whether this expanding user base can be effectively monetized once the investment cycle moderates. Cross-selling opportunities between commerce and fintech services create potential revenue streams, as marketplace buyers transition into payments users and credit recipients. The credit card business in Brazil, where older cohorts have reached profitability, suggests that the business model can generate returns once portfolios mature. The Zacks Consensus Estimate for 2025 earnings per share is pegged at $40.27, unchanged over the past 30 days and up 6.85% year over year, indicating expectations for modest earnings growth despite margin pressures. If MELI can successfully convert current user growth into higher purchase frequency, improved take rates and deeper financial services adoption, the investments may prove justified. However, the timeline for achieving sustainable monetization remains uncertain, and execution risks persist in translating user metrics into long-term earnings growth.
MercadoLibre, Inc. Price and Consensus
Conclusion
MELI's investment case presents offsetting considerations as margin pressures weigh against user growth momentum. The expanding user base provides long-term potential, yet near-term profitability compression and premium valuation relative to Amazon, Sea Limited and eBay create uncertainty. Given robust volume metrics offset by elevated spending, the timeline for margin recovery remains unclear.
MELI currently carries a Zacks Rank #3 (Hold), suggesting current shareholders can maintain positions while monitoring profitability trends. Prudent investors may prefer waiting for a more attractive entry point before initiating new positions.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Naming Top 10 Stocks for 2026
Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.
From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
eBay Inc. (EBAY) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	97.79 20.78
Price/Sales	6.15 0.69
P/B	10.62 1.92
P/FCF	28.21 16.14

Indicator	TTM Median
ROE	13.63 14.63
ROA	5.79 5.13
ROI	11.16 8.58
Net Worth	120.89 0.90
Quick Ratio	1.54 0.88
Current Ratio	1.44 1.44

Indicator	TTM Median
Net Profit Margin	6.22 5.80
Operating Margin	7.49 8.49
Gross Margin	44.96 38.39
Return on tangible equity	13.84 21.83

Indicator	TTM Median
EPS	0.00 0.42
EPS Forecast	0.26 0.38
Revenue	5.26B 185.00M
Gross Profit	2.41B —
EBITDA	488.00M —

Sea Limited

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue