4 Overlooked Stocks to Invest in and Hold for the Next Ten Years
MercadoLibre's Dominance: MercadoLibre leads e-commerce and fintech in 18 Latin American countries with over 200 million active users, showing strong growth potential supported by significant cash reserves for investments.
Grab Holdings Growth: Grab, a super app in Southeast Asia, reported a 24% increase in on-demand GMV and is well-positioned for growth in under-penetrated markets, trading at a low valuation relative to its market potential.
Intuit's Financial Performance: Intuit experienced an 18% revenue growth in Q1 2026, bolstered by a partnership with OpenAI to enhance its products with AI, while maintaining a strong market position in small-business finance.
ASML's Semiconductor Monopoly: ASML holds a near-monopoly on EUV lithography machines essential for advanced semiconductor production, with strong demand projected to drive significant revenue growth through 2030.
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- Surge in Short Selling: Goldman Sachs reported that from January 30 to February 5, short sales outpaced purchases by a two-to-one ratio, indicating heightened market anxiety over AI risks, which has dampened investor sentiment.
- Software Stocks Hit Hard: Under short-selling pressure, a basket of 164 companies in software, financial services, and asset management collectively lost $611 billion in market value over the week, with software stocks accounting for approximately 75% of net outflows, suggesting a potential erosion of demand for traditional software due to AI innovations.
- Increased Market Volatility: Fears of AI disrupting business models led hedge funds to aggressively increase short positions in U.S. equities, resulting in a surge in market volatility, with the long-short ratio dropping to a historic low of 1.3, reflecting investor uncertainty about the future.
- Long-Term Optimism: Despite the short-term market pullback, Morgan Stanley strategists believe that U.S. technology stocks have room to climb as optimism around AI strengthens revenue prospects, indicating confidence in the long-term fundamental support for AI enablers.
- HubSpot Investment Opportunity: Despite HubSpot's stock dropping about 70% over the past year, Rishi Jaluria believes its innovation and unified platform will keep it competitive in the SMB software market, presenting significant growth potential ahead.
- MongoDB Market Outlook: With a 20% decline in stock this year, MongoDB is viewed as the preferred platform for building new AI applications, particularly those utilizing unstructured data, with an expanding customer base expected in the future.
- Intuit's AI Potential: Although Intuit's stock has fallen around 30% this year, Rishi highlights the substantial potential of embedding AI in TurboTax and QuickBooks, which could enhance user experience and disrupt traditional accounting services, creating significant market opportunities.
- Market Reaction to Software Stocks: Rishi Jaluria argues that the market has overreacted to software stocks, especially in the context of rapid advancements in AI technology, suggesting investors should focus on these companies' long-term innovation capabilities and market adaptability.
- Tech Stock Decline: Over the past three months, technology stocks have been on a downward trend, with significant losses among major players in the last week alone, indicating a shift in investor sentiment from growth to value stocks amid increasing volatility.
- Market Performance Comparison: Since Halloween, the Russell 1000 Value index has risen by 8.4%, while the tech-heavy Russell 1000 Growth index has fallen by 3.7%, reflecting a growing preference for value stocks as investors exhibit fatigue towards growth stocks.
- Microsoft Earnings Impact: Following Microsoft's fiscal second-quarter results that exceeded Wall Street expectations, the stock plummeted 11% in a single day due to signs of slowing cloud revenue, marking the largest drop since March 2020 and highlighting the market's sensitivity to tech stock performance.
- Concerns Over AI Technology: Growing concerns about AI technology potentially disrupting the software industry have led to a nearly one-third decline in the IGV Software index since its September peak, illustrating investor caution regarding the future of the tech sector and its economic implications.
- Tech Sector Decline: Over the past week, major tech stocks have suffered significant losses, with AMD down nearly 21% and Intuit down over 17%, indicating a sharp decline in market confidence that could lead investors to reassess their portfolios.
- AI Fatigue Emerges: As investor optimism around artificial intelligence wanes, tech stocks have continued to decline over the past three months, with the Russell 1000 Value index up 8.4% while the tech-heavy Russell 1000 Growth index is down 3.7%, reflecting a shift in market preference towards value stocks.
- Microsoft's Earnings Fail to Boost Stock: Despite Microsoft beating Wall Street expectations in its earnings report, concerns over slowing cloud revenue led to an 11% drop in its stock on the day of the announcement, marking the largest single-day decline since March 2020 and highlighting the fragile confidence in tech stocks.
- Software Industry Challenges: With the rapid advancement of AI technology, there are concerns that AI could replace many software providers at lower costs, resulting in the IGV Software index dropping nearly a third from its September high, signaling intensified competition within the industry.
- Tech Stock Rout: Over the past week, major tech stocks have suffered significant losses, with AMD down nearly 21%, Intuit down over 17%, and Micron down almost 13%, indicating a sharp decline in market confidence that could lead investors to reassess their portfolios.
- AI Fatigue: As investor optimism around artificial intelligence wanes, tech stocks have seen a three-month decline, with the Russell 1000 Value index up 8.4% while the tech-heavy Russell 1000 Growth index is down 3.7%, reflecting a shift in market preference towards value stocks.
- Microsoft's Earnings Fail to Boost Stock: Despite Microsoft exceeding Wall Street expectations in its earnings report, its stock plummeted 11% in one day due to slowing cloud revenue, marking the largest single-day drop since March 2020 and highlighting concerns about the future performance of tech stocks.
- Uncertain Software Industry Outlook: The IGV Software index has dropped nearly a third from its September high, as fears grow that AI technology may replace many software providers at lower costs, intensifying competition in the industry and prompting investors to navigate future uncertainties with caution.
- Investor Sentiment Shift: Investors fled once-reliable software stocks this week due to fears that generative AI could permanently erode demand for traditional digital services, indicating a significant shift in market confidence towards tech stocks.
- Dow Jones Record High: Despite the sharp sell-off in tech, the Dow Jones Industrial Average reached a new milestone of 50,000 points on Friday, showcasing its limited tech exposure as a key advantage, outperforming the Nasdaq 100 for seven consecutive sessions, the longest stretch in nearly four years.
- Surge in Layoff Data: The latest Challenger, Gray & Christmas report revealed that job cuts in January soared to 108,435, a 205% increase from December, with AI-related layoffs accounting for 7,624, or 7%, marking the highest monthly share since tracking began in 2023, highlighting labor challenges in the tech sector.
- Market Structural Changes: Investors are questioning the once-unshakable dominance of software and tech, suggesting that if AI is the disruptor, then value stocks, cyclicals, and tangible businesses may emerge as beneficiaries, reflecting a reevaluation of future investment directions.











