Growth stocks are especially feeling the brunt of the market's sell-off, and as of this writing, the tech-heavy Nasdaq Composite index is down over 27% from its all-time high, comfortably past the bear market threshold of 20%. Two such businesses with excellent fundamentals are Datadog (NASDAQ: DDOG) and MercadoLibre (NASDAQ: MELI). Let's see why overlooking these promising businesses now could turn out to be a missed opportunity.
The growth-heavy Nasdaq Composite has plunged 27% since peaking in November, and many individual stocks have fallen even further. For instance, MercadoLibre (NASDAQ: MELI) and Airbnb (NASDAQ: ABNB) are down 59% and 46%, respectively, from their own all-time highs. MercadoLibre and Airbnb are important players in massive markets, and both stocks are backed by a compelling investment thesis.
Shares of MercadoLibre (NASDAQ: MELI) were moving higher, in line with a broad upswing in tech stocks today. A strong retail sales report and comments from Federal Reserve Chairman Jerome Powell seemed to push the stock higher, as did a better-than-expected earnings report from rival Sea Limited (NYSE: SE), which closed up 14%. MercadoLibre stock closed Tuesday up 6% even though there was no company-specific news out on the Latin American e-commerce specialist.