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3 Top Stocks to Buy in 2026
The Motley Fool· 2025-11-18 09:05
These three stocks look well-positioned to be winners next year.With 2025 beginning to wind down, it's time for investors to start looking toward what could be the best stocks to buy for next year. Here are three stocks that have real potential to outperform in 2026 and beyond.NvidiaWhere Nvidia (NVDA 1.91%) goes, the market is likely to follow. The maker of graphics processing units (GPUs) has grown to become the largest company in the world and is the poster child of the artificial intelligence (AI) boom. ...
This Fintech Stock Had an Incredible 2025. Can Its Run Continue Into 2026?
The Motley Fool· 2025-11-18 08:15
SoFi Technologies has broken out in a big way, and deservedly so.It took Wall Street a while to embrace SoFi Technologies (SOFI 2.80%).Perhaps it was the fact that the digital bank and fintech company went public via a SPAC merger in 2021, at the height of a stock market bubble. Once the air let out, many SPAC stocks lost their shine as investors fled speculative names.Despite the stock's slump, SoFi Technologies continued to grow. This year, investors have acknowledged the company's success. Shares have so ...
Billionaire Warren Buffett Sold 45% of Berkshire's Stake in Bank of America and Is Piling Into a Famed Consumer Brand That's Soared 6,600% Since Its IPO
The Motley Fool· 2025-11-18 08:06
Group 1: Berkshire Hathaway's Investment Activity - Berkshire Hathaway has sold nearly 465 million shares of Bank of America since mid-2024, representing a 45% reduction in its stake [9][5][6] - The company has been a net seller of stocks for 12 consecutive quarters, totaling $184 billion in sales [8] - Despite selling, Berkshire has purchased shares of Domino's Pizza for five consecutive quarters, increasing its stake to over 8.7% of the company's outstanding shares [14][15] Group 2: Bank of America Insights - Bank of America remains Berkshire's third-largest holding by market value, but the stock is now trading at a 38% premium to its book value, compared to a 68% discount when Buffett first invested [13][9] - The selling of Bank of America shares may be influenced by anticipated future interest rate cuts, which could negatively impact the bank's interest income [12][10] - Profit-taking is also a likely reason for the reduction in Bank of America shares, as the stock has provided substantial unrealized gains [11][10] Group 3: Domino's Pizza Performance - Domino's Pizza shares have increased by nearly 6,600% since its IPO in July 2004, reflecting strong consumer trust and innovative strategies [16] - The company has successfully executed its "Hungry for MORE" strategic plan, leveraging artificial intelligence to enhance operations and supply chain [18] - Domino's has achieved 31 consecutive years of positive international same-store sales growth, indicating robust overseas expansion [19]
Netflix's Stock Just Did Something It Hasn't Done Since 2015
The Motley Fool· 2025-11-18 08:00
Is Netflix a buy after its latest stock split?It's been a busy year for Netflix (NFLX 0.78%). The streaming specialist has been producing strong financial results -- as is its habit -- and has significantly outperformed the market this year, something else it has gotten investors accustomed to over the years. After all, the stock has provided life-changing returns over the past two decades. However, Netflix did something this year that it had not done since 2015. Let's see what that is, and whether it makes ...
If You'd Invested $1,500 in D-Wave Quantum Stock 1 Year Ago, Here's How Much You'd Have Today
The Motley Fool· 2025-11-18 07:52
Core Insights - Quantum computing is gaining significant attention as an emerging technology, with D-Wave Quantum being a leading company in this space [1] Company Performance - D-Wave Quantum's stock has increased approximately 1,280% over the past year, turning a $1,500 investment into around $20,700 [2] - The company reported a revenue of $3.7 million in the third quarter, doubling year over year, but also incurred a loss of $140 million [3] - D-Wave Quantum has a market capitalization of $8 billion and is currently trading at over 408 times its projected sales for the next 12 months, indicating a high valuation [4][5] Market Position - D-Wave Quantum is characterized as a pure quantum computing hardware and services company, although it remains a relatively new player in the commercial market [3] - The company operates in a hypergrowth mode, which is expected to lead to losses, adding risk to investments [5] - While investing in D-Wave Quantum offers exposure to quantum computing, there are less risky and more diversified technology investment options available [6]
Cathie Wood Is Selling SoFi Stock. Should You?
The Motley Fool· 2025-11-18 02:50
Core Insights - SoFi Technologies has seen a significant stock increase of 81% this year, indicating strong market performance and investor interest [1] - Cathie Wood's Ark Fintech Innovation ETF holds a notable position in SoFi, which accounts for 3.8% of the ETF, although recent share sales by Ark raise questions about future investment strategies [2][11] - SoFi's business model targets a younger demographic, focusing on providing a fully online banking experience without physical branches, which appeals to tech-savvy users [3][4] Company Performance - SoFi has been rapidly expanding its customer base, adding 905,000 new users in the third quarter, representing a 34% year-over-year increase [7] - The company is focused on developing a comprehensive platform to cater to the financial needs of younger users, creating long-term revenue opportunities as these customers require more services over time [4][5] - SoFi has reintroduced cryptocurrency trading and plans to offer global remittances, leveraging blockchain technology to enhance its service offerings [8][9] Market Position - The digital banking sector is experiencing growth, with SoFi positioned to capture more market share and continue disrupting traditional financial services [6] - SoFi's gross margin stands at 60.33%, reflecting strong operational efficiency [10] - The stock's current price is $27.04, with a market cap of $34 billion, indicating robust market valuation [10]
Firefly's a Buy After Doubling Sales in Q3
The Motley Fool· 2025-11-18 02:41
Core Viewpoint - Firefly Aerospace's stock has rebounded significantly after a period of decline, with a notable increase in sales and future growth potential, despite ongoing losses and rising costs [1][3][6]. Financial Performance - Firefly Aerospace reported Q3 2025 sales of $30.8 million, a 98% increase from Q2 2025 and a 38% increase from Q3 2024 [3]. - The company raised its fiscal 2025 sales guidance to between $150 million and $158 million, surpassing Wall Street's forecast of $135.5 million [5]. Cost and Loss Analysis - The cost of sales increased by 53% year-over-year, while research and development spending grew by 63%, and selling, general, and administrative expenses more than doubled [6]. - Operating losses increased by 82%, with net losses for the quarter tripling to $133.4 million [6]. Share Dilution and Stock Valuation - The share count increased over sevenfold to 93.8 million shares, resulting in per-share losses of $1.50, down more than half from the previous year [7]. - Firefly's stock is currently trading at about 7 times sales, significantly lower than its previous valuation of nearly 50 times sales [12][13]. Future Growth Potential - The acquisition of defense contractor SciTec is expected to enhance Firefly's revenue potential, with analysts projecting up to $446 million in revenue for 2026 [11][13]. - The stock's valuation is now more attractive post-acquisition and earnings report, suggesting a potential buying opportunity for investors [14].
Better Growth Stock: Robinhood vs. Visa
The Motley Fool· 2025-11-18 02:32
Core Insights - Robinhood has significantly transformed the discount brokerage industry by introducing free trading, compelling competitors to follow suit [2] - Visa has established itself as a leading payment processor, benefiting from the ongoing shift from cash to card payments, particularly driven by e-commerce growth [4] Company Overview: Robinhood - Robinhood is a relatively young discount brokerage, having gone public in mid-2021, and has only operated in a bull market, which may affect its resilience during market downturns [3] - The company has expanded its offerings beyond stock trading to include cryptocurrency trading and sports betting, aiming to attract more active investors [2] Company Overview: Visa - Visa has a long-standing presence in the market, having gone public in early 2008 during the Great Recession, and it processes card payments for consumers, earning fees for each transaction [4] - Over the past decade, Visa's revenue has grown at an annualized rate of 11%, with earnings increasing by 14% annually, making it attractive to growth investors [5] Valuation Comparison - Visa's current price-to-sales ratio is approximately 18.5, price-to-earnings ratio is 33, and price-to-book ratio is 17.5, with P/S and P/E ratios below their five-year averages [6] - Robinhood's price-to-sales ratio stands at 26.5, price-to-earnings ratio at 50.5, and price-to-book ratio nearly at 13, indicating that it is expensive relative to its own historical metrics [8] Investment Implications - Robinhood's high valuation suggests that investors are pricing in significant future growth, despite the company's lack of experience in bear markets [9] - Visa, while appearing expensive on an absolute basis, is reasonably priced relative to its historical valuation, making it a more stable investment choice compared to Robinhood [12]
The Best Financial Stock to Hold in Uncertain Times
The Motley Fool· 2025-11-18 02:23
Core Viewpoint - The stock market is currently facing high levels of uncertainty, with investors concerned about potential recession, inflation, and Federal Reserve interest rate changes [1][2] Company Overview - Berkshire Hathaway is highlighted as a strong investment choice during uncertain economic times due to its diverse and durable business model [3][4] - The company is led by Warren Buffett, who will step down as CEO at the end of the year [3] Financial Performance - Berkshire Hathaway's property and casualty insurance business generated over $22.6 billion in net earnings in 2024 [4] - Other significant contributors to net earnings include Burlington Northern Santa Fe Railroad at approximately $5 billion and Berkshire Hathaway Energy at around $3.7 billion, with manufacturing, servicing, and retailing businesses generating over $13 billion in net earnings [6] Financial Position - The company boasts a strong balance sheet with over $377 billion in cash and short-term government bonds as of the end of the third quarter [7] - Berkshire Hathaway's diverse revenue streams and robust management team contribute to its status as a safe investment during economic uncertainty [7]
Biotech Insiders Are Spending Billions. Trump Favors Less Oversight.
The Motley Fool· 2025-11-18 02:18
Core Viewpoint - The SPDR S&P Biotech ETF is positioned as a strong investment opportunity in the biotech sector, which is currently experiencing positive macroeconomic trends and increased M&A activity [1][2][9]. Group 1: Current Market Dynamics - The biotech sector has been outperforming the S&P 500 since August, indicating a potential upward trend that may continue into 2026 [2]. - A significant increase in M&A activity has been observed, with the number of biotech deals in 2025 surpassing the average annual deal count of the past 15 years [8]. - Venture financing deals in the pharma sector rose by 71% in Q3 2025 compared to the previous quarter, totaling around $3 billion [8]. Group 2: Regulatory Environment - Deregulation efforts under the current administration may extend to the healthcare sector, potentially lowering compliance costs and expediting the drug approval process [6]. - The biotech sector is heavily regulated, and any reduction in regulations could enhance the investment landscape [5][6]. Group 3: Investment Strategy - The SPDR S&P Biotech ETF offers equal-weighted exposure across over 100 companies, reducing reliance on a few large firms and spreading out company-specific risks [10][12]. - The ETF has an expense ratio of 0.35% and has delivered a 10.5% average annual return since its inception in 2006, with a 25% increase year-to-date as of November 14 [14][16]. - Investing in smaller biotech companies, which have been the source of most drug innovations, is emphasized as a strategy to capture broader opportunities in the sector [13][15].