Author: openjargon

On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a poor session and tumbled into the red.  The benchmark index fell 0.6% to 8,911.1 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set for another poor session on Friday despite a positive night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 44 points or 0.5% lower this morning. On Wall Street, the Dow Jones was up 0.15%, the S&P 500 rose 1.1%, and the Nasdaq jumped 1.9%.

Oil prices soften

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued finish to the week after oil prices softened further overnight. According to Bloomberg, the WTI crude oil price is down 0.2% to US$76.64 a barrel and the Brent crude oil price is down 0.2% to US$79.38 a barrel. Traders have been selling down oil prices since the US and Iran signed a peace deal and oil started to flow through the Strait of Hormuz again.

Sell REA Group shares

Bell Potter has reaffirmed its sell rating on REA Group Ltd (ASX: REA) shares with a trimmed price target of $133.00 (from $137.00). This implies potential downside of 8% from current levels. It said: “We retain our Sell recommendation. Consensus EPS forecasts have recently declined by c.-2% in recent weeks, however, we still view 13% consensus growth for FY27e as having downside risk. Our thesis rests on REA’s share price declining from a reduction in EPS forecasts in-line with market pricing.”

Gold price drops

ASX 200 gold shares such as Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a tough finish to the week after the gold price sank overnight. According to CNBC, the gold futures price is down 3.3% to US$4,235.1 an ounce. Hawkish comments from the US Federal Reserve boosted the US dollar and rate hike bets.

Buy Seek shares

Seek Ltd (ASX: SEK) shares are undervalued according to Bell Potter. This morning, the broker has retained its buy rating and $18.60 price target on the job listings company’s shares. This implies potential upside of almost 40% for investors from current levels. It commented: “We maintain our Buy; SEK is our preferred rate-sensitive classifieds exposure looking through to a dovish RBA tilt, given the diversification in CAR (Buy; TP: $39.80ps) and policy-impacted earnings outlook for REA (Sell; TP:$133ps), though we acknowledge likely near-term volatility in Aus and global economic data impacting the outlook for SEK.”

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

• Warning! 5 ASX stocks to fall 20% or more: Experts
• Here are the top 10 ASX 200 shares today
• Why has the ASX 200 given up its early rebound today?
• Mirvac Group announces June 2026 distribution
• 10 ASX 200 shares given buy ratings this week

Motley Fool contributor James Mickleboro has positions in REA Group and Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) stocks closed 0.6% lower at 8,911.1 points on Thursday.

In the calendar year to date (YTD), ASX 200 shares have lifted just 2.1%.

A major commodities sell-off in late January and the global oil shock created by the war in Iran have weighed on equities this year.

Experts say some ASX stocks have hefty falls ahead of them.

Let’s take a look at five.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price closed at $162.23, down 0.9% on Thursday.

The ASX 200 bank stock is up 1% YTD.

Macquarie reiterated its sell rating on CBA shares this month.

The broker cut its 12-month price target from $114 to $111.

This implies a potential 32% downside ahead.

Sandfire Resources Ltd (ASX: SFR)

The Sandfire Resources share price closed at $21.20, down 1.4% today.

This ASX 200 copper stock is once again trading close to its record high of $21.75 set in January.

Citi predicts a significant fall from here, but has a hold rating on the ASX mining stock.

The broker has a price target of $12.20, suggesting a 40%-plus slide ahead.

The lithium stock has risen 18% YTD.

IGO Ltd (ASX: IGO)

The IGO share price closed at $8.64, down 3.4% today.

This ASX 200 lithium stock is up 5% YTD.

Morgan Stanley has a sell rating on IGO shares with a $6.85 target.

This indicates a potential 21% downside ahead.

Centuria Capital Group (ASX: CNI)

Centuria Capital stock closed at $2.18, down 0.5% today.

This ASX real estate investment trust (REIT) is up 7% YTD.

UBS has a hold rating on the ASX real estate stock with a $1.69 target.

This implies 23% potential downside ahead.

Wesfarmers Ltd (ASX: WES) 

The Wesfarmers share price closed at $85.78, up 0.3% today.

This ASX 200 consumer discretionary stock is up 5% YTD.

Wesfarmers recently held its 2026 Strategy Briefing Day.

Management told investors about Wesfarmers’ growth and productivity plans, and emphasised the strong balance sheet.

Managing Director Rob Scott said Wesfarmers’ main goal was to deliver satisfactory returns for shareholders.

Scott said Wesfarmers stock had delivered an average annual return of 15.8% over 10 years.

This compares to a 9.2% average annual return from the All Ordinaries Accumulation Index.

Citi kept its sell recommendation on Wesfarmers stock with a $69 target after the event.

This implies a potential 20% downside ahead.

The post Warning! 5 ASX stocks to fall 20% or more: Experts appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• 4 ASX 200 shares downgraded by brokers this week
• Why has the ASX 200 given up its early rebound today?
• Forget CBA: 3 ASX shares with better growth prospects

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has recommended Macquarie Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Megaport Ltd (ASX: MP1) shares are showing no signs of slowing down.

On Thursday, the cloud networking company closed 5% higher at $20.74, just shy of its all-time high of $21.16.

The recent rally has been extraordinary. Megaport shares are up around 70% over the past month, 83% year-to-date, and an astonishing 220% from their 3-year low reached in early April.

That raises the obvious question: after such a powerful run, do brokers still see more upside?

What’s driving the surge?

The latest rally in Megaport shares has been fuelled by a combination of strong operational momentum and renewed enthusiasm for artificial intelligence infrastructure exposure.

A key catalyst has been a series of major AI-related contract wins, reportedly worth around US$275 million, which have reinforced confidence in the company’s global growth pipeline.

Investors have also responded positively to continued strength in recurring revenue metrics and improving visibility across its core platform business.

Asset-light AI model

Megaport’s investment case is increasingly tied to its role in AI infrastructure.

Unlike traditional data centre operators, Megaport shares offer investors exposure to AI-driven demand with shorter implementation lead times and significantly lower capital expenditure requirements. This asset-light model has made it an attractive way to participate in global AI infrastructure growth.

The company’s expanding ARR base is another key strength. At its first-half FY26 results, Megaport reported group annualised recurring revenue (ARR) of $338 million, representing a 49% increase year on year. That level of growth has helped underpin the re-rating in the share price.

In early May, the company also narrowed its FY26 revenue guidance to a range of A$307 million to A$315 million, while maintaining its EBITDA margin and capital expenditure forecasts, signalling stable cost discipline alongside rapid expansion.

If this momentum continues, the business could sustain high growth rates while improving operating leverage over time.

Risks and mixed broker views

Despite the strong performance, not all analysts believe the rally can continue unchecked.

Macquarie remains one of the most bullish voices on Megaport shares. The broker is impressed with Megaport’s recent contract wins and sees the company as a compelling way to gain AI exposure without the heavy capital intensity of traditional infrastructure players. It retains a buy rating and a $27.80 price target, implying roughly 30% upside from current levels.

However, Morgans took a more cautious stance last week. The broker downgraded Megaport to accumulate from buy after the stock’s sharp re-rating. The broker suggested the share price is now closer to fair value following a near 90% surge over the past month. Morgans’ $21 price target sits only slightly above the current share price.

Buy, hold or overcooked?

Megaport’s explosive rally reflects strong execution and rising AI infrastructure demand. However, with analysts now split on valuation, the next phase of gains may depend on whether the company can continue delivering exceptional growth to justify its elevated share price.

The post Up 70% and still charging ahead: Are Megaport shares a buy? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 10 ASX 200 shares given buy ratings this week
• 3 reasons to buy Megaport shares right now
• 4 ASX shares Macquarie says could return more than 40%
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Planning for your retirement can be stressful, especially when you’re trying to work out exactly how much superannuation you need before the time comes.

Working out what superannuation balance you need depends almost entirely on your living situation, your expected retirement age, and what type of retirement lifestyle you’re aiming for.

Do you own your own house? What type of travel do you expect to do after you finish working? Do you have any debts?

By the age of 67, most Aussies will have already retired, or be very close to it. 

Let’s break down what retiring at 67 might look like.

What does a comfortable retirement look like?

In Australia, your retirement is generally split into two broad categories: modest and comfortable.

A modest retirement, according to the Association of Superannuation Funds of Australia (ASFA), is defined as being able to cover expenses slightly above what the full Centrelink Age Pension would provide. 

But it goes without saying that every Australian strives to live a comfortable retirement far above the bare minimum.

ASFA defines a comfortable retirement as one that allows retirees to maintain a good standard of living. 

It assumes you’ll have top-level private health insurance, own a good brand of car, do regular leisure activities, have funds set aside for home repairs and renovations, perhaps even go for the occasional meal out, and an annual domestic trip.

How much will a comfortable retirement cost me?

According to ASFA, a comfortable retirement is expected to cost around $54,840 per year for single Aussies. It is expected to cost roughly $77,375 per year for a couple. 

These figures also assume that you’ll be entitled to receive a part Age Pension payment once you reach age 67.

How much money do I need in my superannuation to afford that?

I’ve crunched the numbers so you don’t have to.

Using ASFA data, it looks like by age 67, single Australians need a superannuation balance of approximately $640,000 in order to fund a comfortable retirement lifestyle. Meanwhile, couples should have closer to $730,000.

Why are these figures so much lower than the $1 million superannuation benchmark we’re told we’ll need?

ASFA recently did a poll and found that 42% of Australians think that they need $1 million in their superannuation before they can retire. It makes sense, as this is the number that has been repeatedly drilled into us.

The reality is, you don’t actually need $1 million to retire in Australia. In fact, most retirees live comfortably with less if they’re able to combine an adequate superannuation balance with the government Age Pension payment.

But if you’re to live a more luxurious retirement, then a $1 million superannuation goal is definitely something to consider.

You’ll also need to take into account your life expectancy. For example, at a cost of $54,840 per year on a balance of around approximately $640,000. That means your superannuation will only be able to fund around 11 years of a comfortable retirement.

The more years of retirement you have to fund, the thinner your superannuation income will need to spread. 

Also, if you don’t own your home outright, you’ll also need to consider how you’ll pay your mortgage or rent on top of your other bills. It’s also wise to have an emergency fund set aside.

All things considered, maybe retiring with a minimum of $1 million of super isn’t as outrageous as you’d first think. 

The post How much superannuation do I really need to retire comfortably at age 67? appeared first on The Motley Fool Australia.

More reading

• 5 high-quality ASX ETFs to buy with $5,000
• Here are the top 10 ASX 200 shares today
• 4 ASX 200 shares downgraded by brokers this week
• Why WiseTech shares could rise 95% to 165%
• Macquarie shares hit another record high. Has the rally gone too far?

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Have $5,000 ready to invest but not a fan of picking stocks?

Well, ASX exchange traded funds (ETFs) could be worth considering. They offer a simple way to gain exposure to high-quality companies without having to pick every share yourself.

Here are five ASX ETFs that could be worth considering.

iShares S&P 500 AUD ETF (ASX: IVV)

The iShares S&P 500 AUD ETF could be worth considering.

This fund gives investors exposure to the S&P 500 index, which includes many of the largest listed companies in the United States.

That makes it a simple way to buy into the American stock market through one ASX trade. It provides exposure to technology leaders, healthcare giants, financial companies, consumer brands, and industrial businesses.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

Another ASX ETF that could be worth considering is the Betashares Global Cash Flow Kings ETF.

This fund focuses on global companies that generate strong free cash flow.

Free cash flow generation is important because it gives businesses flexibility. Companies that produce plenty of cash can reinvest, strengthen their balance sheets, buy back shares, pay dividends, or fund acquisitions.

It is a practical quality filter. Rather than chasing companies with exciting stories but weak financials, this fund looks for businesses that are already turning their operations into real cash.

It was recently recommended by analysts at Betashares.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

A third ASX ETF to consider is the VanEck Morningstar Wide Moat ETF.

This fund also takes a selective approach to US shares. Instead of owning the market purely by size, it looks for companies that have strong competitive positions and are trading at attractive valuations.

That can lead to a different portfolio from a standard US index fund. It tends to include companies with powerful brands, valuable assets, strong customer relationships, or business models that are difficult to copy.

Betashares Australian Quality ETF (ASX: AQLT)

The Betashares Australian Quality ETF is another option for investors to consider.

The Australian market can be heavily influenced by banks, miners, and a small group of large companies. This ETF applies a quality screen, which can help shift the focus toward businesses with stronger financial characteristics.

That may include companies with healthier balance sheets, better profitability, and more consistent earnings.

For investors wanting Australian exposure without simply buying the largest names, this fund could be a top choice. It was also recently recommended by the team at Betashares.

VanEck MSCI International Quality ETF (ASX: QUAL)

A final ASX ETF for investors to look at is the VanEck MSCI International Quality ETF.

This fund invests in international companies with quality characteristics such as strong profitability, lower debt, and resilient earnings.

That gives investors exposure to global businesses that may be better placed to handle changing market conditions.

It will still rise and fall with global share markets, but its quality filter could help investors focus on companies with the financial strength to keep compounding over time.

This fund was recently recommended by analysts at VanEck.

The post 5 high-quality ASX ETFs to buy with $5,000 appeared first on The Motley Fool Australia.

More reading

• 3 world-class ASX ETFs to help build a winning portfolio
• Want to retire earlier? This mix of ASX shares and ETFs could help
• 3 high-quality ASX ETFs at 52-week highs I’d still buy
• 3 ASX ETFs that could help build long-term wealth
• 3 Betashares ETFs that I’d buy with $2,500

Motley Fool contributor James Mickleboro has positions in VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended iShares S&P 500 ETF. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Why is this ASX biotech stock blasting higher today?
• Why has the ASX 200 given up its early rebound today?
• 3 beaten-down ASX healthcare shares tipped to rise up to 202%
• Buy, hold, sell: Flight Centre, SGH, and Navigator Global shares
• Mirvac Group announces June 2026 distribution

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear and Megaport. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares are down 0.4% to 8,934.6 points on Thursday. 

Brokers have downgraded several stocks this week.

Let’s take a look at their new ratings and 12-month share price targets.

Transurban Group (ASX: TCL)

The Transurban share price is $15.06, up 1.1% today.

Over the past month, this ASX 200 industrials share has popped 4.1% higher.

Morgans downgraded Transurban shares from a hold to sell rating yesterday.

The broker said:

TCL’s update indicated traffic is running below expectations. TCL also announced its exit from the Montreal market via divestment, crystallising an equity value loss.

TCL’s recent share price strength (+9% since its February result and not far off all-time highs) is not reflective of the weaker traffic growth and higher interest rate environment that typically challenges TCL’s valuation.

We recommend clients use the share price strength to take profits in overweight positions.

Morgans has a 12-month price target of $12.50, implying a potential 17% downside ahead.

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is $183.32, down 1.9% today.

Over the past six months, this ASX 200 mining share has ripped 28%.

Macquarie downgraded Rio Tinto shares to a hold rating on Tuesday.

The broker lifted its 12-month price target from $186 to $188.

This suggests only a potential 2% upside ahead.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s Pizza share price is $16.25, down 0.4% today and down 26% YTD. 

This ASX 200 consumer discretionary share has tumbled 28% over six months.

Morgans downgraded its rating on Domino’s Pizza shares to a hold this week.

The broker said: 

The trading environment for DMP has become more challenging than previously assumed, and we have updated our forecasts to reflect a weaker SSS (same-store-sales) outlook across all three regions, compounding cost pressures on ANZ franchisee economics, and a more adverse FX environment in Japan.

The earnings recovery, albeit modest, remains on track but it is entirely cost-driven; there is no volume improvement embedded in our numbers until outer years.

We move to a HOLD rating until there is evidence of further cost management and SSS recovery.

The broker reduced its price target on Domino’s Pizza shares from $25 to $17.60.

This indicates potential capital gains of 8% over the next year. 

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price is $86.43, up 1.1% today.

Over the past month, this ASX 200 retail share has soared 21%.

Macquarie downgraded Wesfarmers shares to a hold rating with an $85 target.

This suggests the stock is fully valued today.

The post 4 ASX 200 shares downgraded by brokers this week appeared first on The Motley Fool Australia.

More reading

• Rio Tinto share price rallies 75% in 12 months: Is the mining stock still a buy or have the shares now peaked?
• Where to invest $10,000 in ASX dividend shares
• 5 things to watch on the ASX 200 on Thursday
• Why Karoon Energy, Novonix, Transurban, and Woodside shares are sinking today
• Buy, hold, sell: Accent, Karoon Energy, and Transurban shares

Motley Fool contributor Bronwyn Allen has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, Macquarie Group, Transurban Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool Australia has recommended Domino’s Pizza Enterprises, Macquarie Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

WiseTech Global Ltd (ASX: WTC) shares have had a brutal fall from grace.

On Thursday, the logistics software company’s shares are trading at $36.64, leaving them just above their 52-week low.

They are also down almost 70% from their high, which shows just how much sentiment has turned against the former market darling.

But some brokers believe the selloff has gone too far.

Why have WiseTech shares fallen?

WiseTech was once one of the ASX’s most highly rated technology shares.

Investors were willing to pay a premium for the company because of its global growth story, sticky customer base, and exposure to the enormous logistics industry.

But that premium has disappeared in a flash.

Concerns around valuation, execution, leadership, and artificial intelligence (AI) disruption have weighed heavily on the share price. When a growth stock loses market confidence, the adjustment can be severe, and that is exactly what has happened here.

The key question now is whether the market has marked WiseTech down too aggressively.

What does WiseTech do?

WiseTech’s core product is CargoWise, a software platform used by freight forwarders and logistics companies.

This is not consumer-facing technology, and it is not the kind of software most people will ever see. But it sits inside a highly important part of the global economy.

Moving goods across borders is complicated. Logistics companies need to deal with documentation, customs, compliance, shipment tracking, invoicing, and communication between many different parties. CargoWise helps manage that complexity.

That may not sound exciting, but it can be valuable. If software becomes deeply embedded in the daily operations of a freight forwarder, it can be difficult and disruptive to replace.

And global trade is not becoming simpler. Large logistics companies continue to need technology that can handle cross-border complexity at scale. This bodes well for the future demand for CargoWise.

Brokers are bullish

A number of brokers see significant upside for investors.

For example, Bell Potter has a buy rating and $71.75 price target on WiseTech shares. Based on the current share price of $36.64, this implies potential upside of approximately 95%.

Macquarie is even more bullish. It has an outperform rating and $97.70 price target on the company’s shares, which suggests upside of approximately 165% over the next 12 months.

Is this a buying opportunity?

After a near-70% fall from its high, WiseTech shares are firmly in the unloved bucket.

But with brokers seeing upside of around 95% to 165%, this beaten-down ASX tech share could be one of the more interesting recovery opportunities on the market.

The post Why WiseTech shares could rise 95% to 165% appeared first on The Motley Fool Australia.

More reading

• If the ASX 200 rallies in the back half of the year these sectors could be portfolio winners
• Do WiseTech Global shares have a moat?
• Down 65%+, why I’d buy and hold these ASX shares
• How to make $2,000 of monthly passive income from ASX shares
• Down 46%: What should I do with my WiseTech shares now?

Motley Fool contributor James Mickleboro has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Macquarie Group Ltd (ASX: MQG) shares have continued their strong run on Thursday, reaching another record high during morning trade.

At the time of writing, the Macquarie share price is up 0.30% to $252.68.

The ASX 200 financial stock earlier touched $253.13, setting a fresh all-time high and pushing its gain since the start of 2026 to around 24%.

While there’s been no new announcements from the company today, investors are still loading up after last month’s stronger-than-expected full-year result.

Let’s take a look.

Record profit keeps investors interested

Macquarie reported a net profit of $4.85 billion for the 12 months ended 31 March 2026, up 30% from a year earlier.

The result came in ahead of market expectations and was the second-highest annual profit in the company’s history.

Most of the momentum came in the second half, with profit reaching a record $3.19 billion. By the way, that was 93% higher than the first half.

Commodities and Global Markets did much of the heavy lifting, with profit from the division rising nearly 50% to $4.22 billion.

Volatile energy markets lifted demand for Macquarie’s trading, hedging, and financing services, while the sale of its OnStream smart meter platform also gave earnings a boost.

Macquarie Asset Management and Macquarie Capital chipped in with higher profits as well.

Shareholders also received a larger final dividend of $4.20 per share, up 7.7% from the previous year. That took the full-year payout to $7 per share.

Brokers are getting closer to the share price

The recent rally has left Macquarie shares sitting close to several broker price targets.

Morgan Stanley still has a buy rating and a $263 price target on the stock. Based on the current share price, that points to upside of around 4%.

UBS is less bullish, with a $250 target following the full-year result, while Jefferies has the stock valued at $253.73.

Those targets came before today’s record high, which means much of the expected earnings growth may already be priced into shares.

Of course, broker targets are only estimates and can change when earnings forecasts or economic outlook shift.

Is it too late to buy?

Macquarie’s latest result goes a long way towards explaining why the shares have been constantly climbing.

The company earns money across asset management, commodities, banking, advisory, and capital markets.

On another note, around 68% of its FY26 income came from outside Australia.

That gives Macquarie several ways to make money, although its earnings can still swing around depending on market conditions.

Macquarie is still performing well, but the higher share price leaves very little room if results fall short of expectations.

The post Macquarie shares hit another record high. Has the rally gone too far? appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares, including Macquarie and BHP, smashing new 52-week-plus highs today
• Buying Macquarie shares? Here’s the dividend yield you’ll get today
• Macquarie shares climb to fresh all-time high: Buy, sell or hold?
• Why I’d buy and hold Macquarie shares for 10 years
• How to build a $1 million ASX share portfolio from zero

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Jefferies Financial Group and Macquarie Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Most ASX investors looking for their next share purchase are probably eyeing off Commonwealth Bank of Australia (ASX: CBA), Telstra Group Ltd (ASX: TLS), or perhaps Pro Medicus Ltd (ASX: PME). Hopping across the proverbial pond and buying, for example, Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) shares is probably not on most investors’ radar.

Yet that could be a mistake. The ASX is home to some fine companies, to be sure. But the US markets house the best in the business. The likes of CBA or Telstra are simply not even in the same league as US stocks like Coca-Cola, Nvidia, or Alphabet when it comes to size, scale, and dominance.

Of all the US stocks available on the American markets, I think Alphabet is one of the best picks for ASX investors with a long-term horizon. This company has so many things going for it that it is hard to oversell.

Firstly, we have Google Search, a service we’d all be familiar with. To say that Google Search is dominant is a gross understatement. It has a near-monopoly on internet search in almost every country in the world, except China.

Alphabet has been able to leverage this with incredible effect by integrating it with its ‘Google Ads’ advertising business. This makes advertising with Google cheap and effective for customers, and highly profitable for the company.

Indeed, Alphabet can probably be considered the largest advertising business in the world, rivalled only by its Magnificent 7 peer, Meta Platforms.

Alphabet shares: Here’s what you’re buying

But Search and Ads are only two arrows in Alphabet’s quiver (albeit the biggest ones). The company also owns the YouTube platform in its entirety. YouTube is another business that you get with buying Alphabet shares that could be described as monopolistic. It simply has no effective rivals in its field. It is another advertising juggernaut and integrates well with Google Search and Ads. As do Google Maps and Gmail.

Aside from Google Search, Maps, Gmail, and YouTube, Alphabet also offers a leading artificial intelligence platform, Gemini. Like most AI platforms, Gemini is soaking up far more capital than it is bringing home right now. However, given its leading status amongst its rivals, I think there is a lot of potential for Gemini to become yet another cash cow for Alphabet shares in the years ahead.

It’s a similar story with Google Cloud, Alphabet’s back-end rival to the highly successful AWS from Amazon. Google Cloud is already profitable and is growing at a healthy rate.

There’s also Alphabet’s high-risk, high-reward ‘Other Bets’, of which self-driving car division Waymo is probably the most exciting.

So all in all, you have a collection of some of the most exciting (and profitable in many cases), wide-moat businesses in the world, all under one roof.

Alphabet is currently (at the time of writing) trading on a price-to-earnings (P/E) ratio of 27.75. That, at least in my view, isn’t a bad entry price for this exciting company. As such, I think Alphabet shares are well worth considering for any ASX share portfolio today.

The post Here’s why I’d add Alphabet shares to an ASX stock portfolio right now appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Coca-Cola, and Meta Platforms. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Meta Platforms, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Alphabet, Amazon, Meta Platforms, Nvidia, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.