Welcome back to the Wolf of Harcourt Street Newsletter.
Every month, I'll provide you with an update on my portfolio, including all of the transactions, the current allocation, and my buy list. In addition, I'll share a recap of the articles you may have missed from the previous month.
Top 10 Rebound Stocks for 2026
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Transactions
ASML (ASML)
After contemplating the decision for a while, I decided to trim 20% of my position in ASML this month at €1,633, before the company reported Q2 earnings. The stock has been on an incredible run over the past 12 months since I initiated the position, and by trimming here, I’ve locked in a gain of 150%.
I believe the valuation had gotten ahead of itself, particularly when compared with its historical P/E multiple. As you can see in the chart below, the forward P/E was above 40x when I trimmed.
Later in the month, the company reported impressive earnings, with full-year 2026 net sales guidance upgraded to €43 billion to €45 billion, up from the previous forecast of €36 billion to €40 billion.
While the share price is down about 12% since I sold, the real reason the forward P/E has fallen so much is the significant increase in earnings guidance.
I’m still very bullish on the company’s long-term prospects and would be more than happy to buy back these shares if the market presents the opportunity. If it doesn’t, I’m still holding a sizeable position. It just isn’t my largest holding anymore.
Take-Two Interactive (TTWO)
After initiating my position in TTWO in May, I doubled it in June and added again this month to bring the position to my desired 6% weight on a cost basis.
Unless the stock falls materially over the coming months, I expect this is me done adding to TTWO for a while. I expect the hype to build in the coming months ahead of the November release of GTA VI.
Uber (UBER)
I added to my position in Uber as the stock hit another 52-week low this month.
The primary driver of the recent decline was news that Waymo is exploring an exit from its alliance with Uber. Waymo notified Uber of plans to launch independently in key markets such as Austin and Atlanta by 2028.
This triggered a knee-jerk fear that Uber will be bypassed by autonomous vehicle networks. The market is treating AV technology as a zero-sum game, assuming Waymo wins and Uber loses.
This is where my view fundamentally differs.
AV developers lack consumer distribution, demand matching, and global fleet-routing infrastructure. Uber has built a network of more than 20 autonomous vehicle partnerships. Moving away from an exclusive reliance on Waymo gives Uber the flexibility to act as the primary, asset-light marketplace layer for the global autonomous vehicle industry.
During the month, Uber also agreed to acquire Germany’s Delivery Hero for €12.7 billion in an all-cash deal. While strategically sound, the Street penalised the stock due to short-term margin compression and pressure on near-term cash flow.
The acquisition of Delivery Hero effectively creates a global duopoly with DoorDash, providing significant cross-platform economics. Uber’s 50 million+ Uber One subscribers already use multiple services, including Mobility and Delivery, generating higher booking frequency and stickier cash flows than single-service platforms.
Ironically, the acquisition of Delivery Hero also further diversifies Uber away from the risk posed by AVs, as a greater portion of its revenue and cash flow will come from Delivery and other services rather than Mobility.
META (META)
I added to my Meta position after the stock dropped as much as 10% following the release of its Q2 2026 earnings.
Meta reported diluted EPS of $6.18, well below the Wall Street consensus estimate of $7.22. Its operating margin fell to 31% from 43% a year ago, largely as a result of two massive one-time items, $2.40 billion in legal proceeding charges and $1.18 billion in severance expenses following its 8,000-employee layoff wave.
This appears to be what the market focused on.
However, the core business is accelerating.
Revenue grew 28% YoY to $60.80 billion, comfortably outpacing analyst expectations. This growth was driven by a 14% increase in ad impressions and a 12% increase in the average price per ad.
Added to this, Meta’s user growth continues to chug along even at this enormous scale. Daily Active People across its Family of Apps reached 3.60 billion, meaning nearly half the planet interacts with a Meta platform every day.
Stripping away the one-time $3.58 billion in combined legal and severance charges reveals that Meta’s core business is significantly more profitable than the headline numbers suggest. CFO Susan Li noted that, excluding these unusual charges, underlying operating income would have increased by 9% YoY.
Following the post-earnings selloff, Meta’s forward P/E has fallen to an attractive 16x.
Allocation
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Buy List
Adyen (ADYEN)
I released my Adyen 2026 Financial Model and Valuation Update below, and this is what has prompted me to put Adyen firmly at the top of my Buy List.
You can read the full report below.
Spoiler: My analysis suggests the stock is significantly undervalued, even based on conservative assumptions.
Mercado Libre (MELI)
Similar to Adyen, I rebuilt my MELI 2026 Financial Model from scratch after the company accelerated growth in 2025, but with a material trade-off in margins.
To summarise, the analysis suggests that the market’s reaction to recent margin compression has gone much further than the underlying cash flow mathematics justify, and that MELI is materially undervalued once more.
In Case You Missed It
Some of the articles you might have missed during the past month:
Final Words
After trimming ASML, I now sit on a cash buffer of over 3%.
Despite the portfolio being at an all-time high valuation, I continue to see plenty of opportunities in this market. While semiconductor exposure has been on a parabolic run this year, sectors such as fintech, software and e-commerce continue to lag. These are the areas where I’m planning to hunt.
Before I sign off for this month, a special word for Amazon, which reported Q2 2026 earnings this month.
The stock surged 15% afterwards and jumped up to become my second-largest holding. The reason was simple: AWS revenue growth accelerated to 37%, the fastest pace in 16 quarters.
This is now a $169 billion run-rate business, despite capacity constraints. The order backlog reached $496 billion in Q2, 2.5 times higher than a year ago.
What an incredible business.
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Happy investing
Wolf of Harcourt Street
Contact me
Twitter: @wolfofharcourt
Email: wolfofharcourtstreet@gmail.com
That’s a lot of good names.. :) Thank you sharing!
I think we should look at absolute quarter-on-quarter growth rather than percentage growth. The results might look astonishing:
- Google GCS 24,8 + 4,8 Q-Q
- Amazon AWS 42,2 + 4,6 Q-Q
- Microsoft intelligent cloud 39,3 + 4,6 Q-Q
Alle are increasing their revenue growth Q-Q with their cloud services with 100% or more. And the growth is almost evenly spread between the three hyerscalers. Too early to tell who will actually do the best. Maybe not much of a competitive advantage between them, for now, as long as demand exceeds supple, but maybe we see a oligopoly with 3 companies, just like master card, visa and Amex. I think they are way ahead of any other company offering cloud, they will have superior learning curve and massive economies of scale and the runway is very long because those contracts have a minimum length of 5 years.