Only 3 of My Top 10 Stocks for 2025 Lost to the Market. Here Are the Ones I Think Are Still Buys for 2026.
The Motley Fool·2026-01-22 05:45

Core Viewpoint - The article discusses the performance of three underperforming stocks—Meta Platforms, Amazon, and PayPal—despite a strong overall market in 2025, suggesting potential for recovery in 2026 [1][4][8]. Performance Analysis - The S&P 500 rose by 16.4% in 2025, but Meta Platforms, Amazon, and PayPal underperformed relative to the market [4]. - Meta Platforms initially outperformed but faced a sell-off after announcing increased capital expenditures for data centers in 2026 [4]. - Amazon struggled throughout 2025 due to a high premium that has since diminished, now trading similarly to other major tech stocks, with potential for a strong 2026 based on recent business performance [5][6]. Stock Valuation - PayPal is described as a turnaround story with limited growth but is considered undervalued at less than 10 times forward earnings, indicating potential for significant upside due to its global payments exposure [7][10]. - Meta Platforms has the potential for strong returns based on its investments in data centers, while Amazon's financial strength could lead to a rebound [8]. Future Outlook - All three stocks—Meta, Amazon, and PayPal—are viewed as having the potential to outperform the market in 2026, although confidence in PayPal's recovery is lower compared to the other two [8][10].

Amazon-Only 3 of My Top 10 Stocks for 2025 Lost to the Market. Here Are the Ones I Think Are Still Buys for 2026. - Reportify