Discount Giant Carts a Mega Miss

Author

Adam Garcia
May 27, 2025

A budget e-commerce giant is down 17% after missing revenue estimates, a cloud data firm is rallying on reports of an $8B buyout, and a logistics SaaS provider is surging 26% after another $2.1B buyout. Read all about what’s moving the markets today.

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What to Watch

Earnings:

  • Okta, Inc. [OKTA]: Aftermarket

  • Sociedad Quimica y Minera S.A. [SQM]: Aftermarket

  • Box, Inc. [BOX]: Aftermarket

  • Semtech Corporation [SMTC]: Aftermarket

Economic Reports:

  • Minneapolis Fed President Neel Kashkari's speech in Tokyo: 4:00 AM

  • Durable-goods orders [April]: 8:30 AM

  • Durable-goods minus transportation [April]: 8:30 AM

  • S&P CoreLogic Case-Shiller home price index (20 cities) [March]: 9:00 AM

  • Consumer confidence [May]: 10:00 AM

  • New York Fed President John Williams's speech in Tokyo: 8:00 PM

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E-Commerce

PDD Stock Plunges as Q1 Revenue Falls Short on Global Headwinds

PDD Holdings (NASDAQ: PDD) reported disappointing first-quarter results today, missing revenue expectations and posting a steep decline in net income, as both its domestic and international e-commerce platforms faced mounting challenges.

The China-based tech firm brought in 95.67 billion yuan ($13.3 billion) in revenue for the quarter ending March 31, well below analysts’ average forecast of 102.51 billion yuan, according to data from LSEG.

Shares are down nearly 17% in U.S. premarket trading following the announcement.

Net income plunged 47% year-over-year to 14.74 billion yuan, down from 28 billion yuan in the same period last year, reflecting pressures from cooling consumer sentiment in China and intensifying global trade uncertainty.

Its flagship platform Pinduoduo, known for steep discounts, struggled despite broad price promotions and economic stimulus efforts. Meanwhile, Temu—PDD’s fast-growing global marketplace—was affected by shifting U.S. trade policies.

A recent adjustment to the “de minimis” tariff exemption had temporarily helped Temu maintain competitive prices on goods under $800, but future changes could threaten that advantage.

The results mark a rare stumble for the low-cost e-commerce giant, which has seen rapid global expansion in recent years.

Technology

Informatica Shares Surge as Salesforce Deal Takes Shape

Data-management firm Informatica (NYSE: INFA) shares are continuing to rise by 5% in premarket today, after a 17% rally on Friday, on news that Salesforce (NYSE: CRM) is on the verge of acquiring it in a deal worth approximately $8 billion.

The agreement, expected to be announced later Tuesday, would see Salesforce pay around $25 per share for Informatica. The deal follows revived talks between the two companies after previous negotiations broke down in 2024.

Salesforce beat out a number of private equity firms and strategic buyers in a competitive bidding process. This potential acquisition would mark Salesforce’s largest since its $28 billion purchase of Slack in 2021 and adds to its history of transformative deals, including Tableau and MuleSoft.

Informatica specializes in helping enterprises manage and integrate data across on-premise and cloud platforms—a capability that aligns closely with Salesforce’s growing emphasis on AI-driven tools for customer engagement.

Informatica was taken private in 2015 by Permira and the Canada Pension Plan Investment Board (CPPIB) in a $5.3 billion deal and returned to the public markets in 2021. Permira and CPPIB still control a majority of its shares.

Salesforce, with a market value exceeding $260 billion, is set to report quarterly earnings on Wednesday. The move signals a return to big-ticket M&A under CEO Marc Benioff, even as the company remains under the watchful eye of activist investors.

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Auto Ancillary

AutoZone Posts Solid Q3 Results, Eyes Strong Summer Finish

AutoZone (NYSE: AZO) shares are edging up in premarket trading after the auto parts retailer reported a 5.4% year-over-year increase in third-quarter revenue, driven by steady growth across both domestic and international markets.

For the quarter ending May 10, the company reported net sales of $4.5 billion, while earnings per share came in at $35.36.

While currency headwinds slightly dampened reported figures, AutoZone said its global footprint remains a focus, with expansion efforts underway in international markets.

CEO Phil Daniele highlighted the company’s continued progress in both the DIY and commercial segments, noting an acceleration in U.S. sales compared to the prior quarter.

He also acknowledged that while gross margins were under pressure during the period, improvements are expected as new distribution centers come online and higher-margin merchandise initiatives take hold.

Despite macroeconomic pressures, AutoZone expressed optimism about its upcoming summer sales season, citing solid operational momentum and preparations in place to meet peak demand.

Movers and Shakers

E2open Parent Holdings, Inc. [ETWO] - Last Close: $2.57

E2open Parent Holdings is a cloud-based supply chain management SaaS provider. It has shown consistent revenues but its profitability plunged in Q3’24 and continued to remain a concern in Q4’24. The stock is down 4.5% year-to-date.

Shares are jumping over 26% in premarket trading after WiseTech Global announced a $2.1 billion all-cash acquisition of E2open at $3.30 per share, aiming to expand its global logistics platform.

My Take: Despite recent financial challenges, E2open's strategic value in the supply chain sector is evident from the acquisition. Keep your eye on how the deal progresses.

Diginex Limited [DGNX] - Last Close: $57.01

Diginex Limited is a Hong Kong-based ESG-focused software company. Despite generating just $1.18 million in revenue over the past year and posting a net loss of $6.9 million, its stock has surged over 1,600% since its January 2025 IPO, reaching a market cap exceeding $2 billion.

Diginex shares are up 21% in premarket trading following the announcement of its acquisition of Danish ESG data firm Matter DK in a $13 million all-share deal, signaling an expansion of its ESG data capabilities.

My Take: The company's high valuation relative to its modest revenues and ongoing losses raise concerns about its financial sustainability. However, it remains a high-risk, high-reward option to keep your eye on.

MAC Copper Limited [MTAL] - Last Close: $10.15

MAC Copper Limited operates the CSA Copper Mine in New South Wales, Australia. The last two years have seen rapid growth in its revenue and improvement in net margins.

Its shares are surging over 17% following Harmony Gold Mining's announcement that it will acquire MAC Copper for $12.25 per share in a $1.03 billion deal, representing a 21% premium over the last close.

My Take: The acquisition by Harmony Gold is a solid exit for MAC Copper. The deal offers immediate value to shareholders. Keep this stock on your radar to see how the deal progresses.

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AI’s capabilities are growing rapidly—handling layered conversations, correcting itself, and adapting in real time.

This shift is opening up new frontiers for early investors.

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These tickers are positioned to ride the AI boom in its most advanced form yet.

[See the Top 5 AI Stocks – Free Access]

(By submitting your email address, you will receive a free subscription to the Profit From The Pros e-letter, and offers from us and our affiliates that we think might interest you. You can unsubscribe at any time.)

Everything Else

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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