Category: Stock Market

If you’ve been waiting for the right moment to start investing, then stop! The best time to begin is almost always now.

Not because the market is perfectly priced, it rarely is, but because time in the market does far more for your wealth than trying to pick the perfect entry point.

One of the easiest ways to get started is with exchange-traded funds (ETFs).

They’re low-cost, diversified, beginner-friendly, and designed to grow with the broader market. You don’t need to pick stocks. You don’t need to predict which company will be the next big winner. You just need to get in, stay consistent, and let compounding quietly get to work.

But what does that look like in real numbers? And what could a simple $5,000 investment today grow into over the next decade or two?

Let’s break it down.

Why ETFs make compounding so powerful

When you buy an ASX ETF, you are buying a basket of companies in one shot.

That could be Australia’s top 200 shares through something like an ASX 200 fund, the world’s biggest shares through a global ETF such as the Vanguard MSCI Index International Shares ETF (ASX: VGS) or the iShares S&P 500 ETF (ASX: IVV), or fast-growing themes like technology through options such as the Betashares Nasdaq 100 ETF (ASX: NDQ) or the BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC).

Historically, share markets have returned around 8%–10% per year on average. That’s not guaranteed, but over long periods, it has been remarkably consistent despite market crashes, recessions, and geopolitical shocks.

What your $5,000 could grow into over time

If your $5,000 investment returned 10% per year on average, let’s now see what it could turn into over the long term.

After 10 years, that initial $5,000 could grow to around $13,000. It isn’t life-changing yet, but it is already more than double your starting amount — and you didn’t have to do anything other than stay invested.

After 15 years, the same investment could grow to roughly $21,000. At this point, compounding is starting to accelerate, because your returns are now earning returns of their own.

After 20 years, that original $5,000 could be worth around $33,600. That’s more than six times what you started with, all from a single one-off investment and an average long-term return.

And keep in mind, this doesn’t include any additional contributions. Add even small, regular top-ups over time, and those numbers can climb dramatically higher.

For example, starting with $5,000 and adding $100 a month to your portfolio would turn these amounts into $33,000, $61,000, and $106,000, respectively, all else equal.

Foolish takeaway

A one-off $5,000 investment may not seem like much today, but over 10, 15, or 20 years, compounding can transform it into something far more meaningful.

By using simple, broad-based ASX ETFs and giving them enough time to grow, investors can build real wealth without stress, guesswork, or constant tinkering.

And if you can add to it with small monthly investments, you really could supercharge your wealth creation.

The post What $5,000 invested in ASX ETFs today could become in 10, 15, and 20 years appeared first on The Motley Fool Australia.

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• The best ASX ETFs to buy for global investing in 2026

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Vanguard Msci Index International Shares 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.

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• Leading brokers name 3 ASX shares to buy today
• Why Gentrack, Monash IVF, Pro Medicus, and Qube shares are racing higher today
• 2 ASX 300 shares highly recommended to buy: Experts
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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 Life360, Megaport, and SiteMinder. The Motley Fool Australia has positions in and has recommended Life360 and SiteMinder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Tech stocks have experienced choppy trading patterns in recent weeks. However, the long-term outlook for top companies in the sector continues to position investors for excellent return potential.

The tech-centric Nasdaq Composite has returned 90% over the last five years, outperforming the S&P 500 and Dow Jones Industrial Average. Artificial intelligence (AI) has been a significant catalyst for the growth of the largest tech companies over the last few years, but it’s just getting started.

The following AI stocks are excellent options to profit from the growth of this revolutionary technology. 

1. Advanced Micro Devices

Leading tech companies will continue to invest in advanced computing hardware until AI surpasses human intelligence. That’s where the world is heading. The stakes are enormous, but to achieve this, these companies will need significantly more computing power. This is why investors should consider investing in Advanced Micro Devices (NASDAQ: AMD).

AMD has navigated through a slump in its growth over the past few years, but the investments it has made to catch up in the AI chip market are starting to pay off. Revenue grew 36% year over year in the third quarter, reaching $9.2 billion. It also reported a 30% year-over-year increase in adjusted earnings per share and record free cash flow, demonstrating how AMD is profitably scaling its business.

It’s just getting started. The company is driving this accelerating growth by offering a superior cost-performance balance compared to competing chips. Its fifth-generation Epyc central processing units (CPUs) for servers continue to gain market share on Intel, while its MI300 series of graphics processing units (GPUs) are valued for their efficiency in handling AI inference workloads.

The launch of the MI450 GPU next year is expected to drive record revenue. OpenAI is slated to purchase a large cluster of MI450s in the second half of 2026. This is part of a long-term agreement that will make AMD a key strategic partner for the owner of ChatGPT.

These deals indicate further growth for AMD that could deliver substantial returns for investors. Analysts are currently projecting annualized free-cash-flow growth of 66% through 2029. This is why the stock rocketed to new highs and could offer significant upside.

2. Meta Platforms

Meta Platforms (NASDAQ: META) has over 3.5 billion people using its services daily, with more than 3 billion on Instagram alone. Meta is making these services even more profitable and engaging for users by leveraging AI. With substantial resources to expand its data center capacity, Meta is building an unstoppable competitive advantage around its tech infrastructure.

Its third-quarter financial results were outstanding, with revenue up 26% year over year. Its ad revenue is generating a significant operating margin of 43% on a trailing-12-month basis, contributing to $44 billion in free cash flow.

Meta has made improvements to its ad technology, where AI is driving better efficiency and more relevant ads shown to users. AI-driven ad tools are generating over $60 billion annually, accounting for approximately a third of the company’s total revenue.

The stock is down 20% since the third-quarter earnings report, primarily due to the company’s plan to accelerate capital spending over the next year. This is expected to put pressure on margins and profits. However, the additional GPUs and compute capacity will further expand its AI capabilities, potentially leading to lucrative opportunities to generate more profits in the future.

These investments will strengthen Meta’s long-term competitive moat and potentially lead to the development of new AI-driven services. There is considerable long-term upside for Meta that is not fully reflected in its current valuation. The stock is trading at just 20 times 2026 earnings estimates, which appears to be a bargain for a leading tech company.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 2 artificial intelligence (AI) stocks to buy before the end of 2025 appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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John Ballard has positions in Advanced Micro Devices. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Advanced Micro Devices, Intel, and Meta Platforms. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: short November 2025 $21 puts on Intel. The Motley Fool Australia has recommended Advanced Micro Devices and Meta Platforms. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) are two ASX 200 blue-chip shares that can be found in the portfolios of many a dividend investor in Australia.

Income seekers like the sturdy business models that both of these companies offer, thanks to their defensive nature as consumer staples providers. Both Coles and Woolworths are established and highly profitable, which gives both stocks a durable earnings base from which to fund what have historically been reliable passive income to shareholders.

Saying all of that, both Coles and Woolworths shares have been through some dramatic changes over the past 12 months. One at the expense of the other, as it happens.

Today, let’s review both stocks’ dividends and determine which one appears to be the better buy for income investors at present.

Coles vs. Woolworths shares: Which is the better dividend stock?

Well, let’s start with the payouts.

Coles sent out its normal two dividends in 2025. The first came in March, the interim dividend worth 37 cents per share. The second was the final dividend from September, worth 32 cents per share. Both payments came fully franked, as is typical for Coles. Together, the payments represent a payout ratio of 85.4% of earnings.

Coles’ 2025 dividends came in ahead of 2024’s payout. Although the final dividend was flat year on year, the interim dividend was boosted by one cent compared to 2024’s equivalent payout of 36 cents per share.

Today, these 2025 dividends give Coles a trailing dividend yield of 3.06%.

In 2025, Woolworths also doled out two dividends, as is the company’s habit. The first was the April interim dividend worth 39 cents per share. The second, the final dividend from September worth 45 cents per share. Both payments came fully franked and represented a payout ratio of 74.1% of earnings.

Unlike Coles’ payouts, though, these dividends from Woolworths shares represented significant reductions over the income shareholders banked in 2024. That consisted of an interim dividend of 47 cents per share and a final dividend worth 57 cents per share. There was also a special dividend of 40 cents per share paid out. However, that was funded from the one-off sale of Woolworths’ last 5% stake in Endeavour Group Ltd (ASX: EDV), so it isn’t worth including.

Today, Woolworths’ stock is trading on a dividend yield of 2.97%.

Foolish Takeaway

If I had to choose between Coles and Woolworths shares for dividend income today, I would probably opt for Coles. Not just because it offers a slightly higher yield, though. Woolworths is currently in a bit of a funk, evident from its recent share price trajectory. The company’s management is facing questions about the direction it is taking, and it has been steadily losing market share to Coles in recent quarters. Its Big W division also continues to weigh on its overall strength.

Meanwhile, Coles has a far better track record of delivering consistent dividends in recent years, despite its higher payout ratio. As such, it would be my pick of the two right now.

The post Best buy for dividends today: Coles or Woolworths shares? appeared first on The Motley Fool Australia.

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• 2 of the best ASX dividend shares to buy for dependable passive income
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Motley Fool contributor Sebastian Bowen has positions in Endeavour Group. 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 positions in and has recommended Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are a lot of options out there for income investors to choose from on the Australian share market.

To narrow things down, let’s take a look at three ASX dividend stocks that brokers have named as buys. Here’s what they are saying about them:

Centuria Industrial REIT (ASX: CIP)

Centuria Industrial REIT could be an ASX dividend stock to buy.

It is one of Australia’s leading owners of industrial real estate with a portfolio including major distribution hubs that are leased to blue-chip tenants in e-commerce, manufacturing, and logistics.

Management notes that its portfolio includes 87 high-quality, fit-for-purpose industrial assets worth a collective $3.89 billion. These assets are situated in key in-fill locations and close to key infrastructure.

Although rising interest rates have pressured the broader property sector in recent times, Centuria Industrial REIT’s long-term leases and stable rental income leave it well placed for the future.

For example, UBS believes the company is now positioned to pay dividends per share of 16.8 cents in FY 2026 and then 17.9 cents in FY 2027. Based on its current share price of $3.41, this equates to dividend yields of 4.9% and 5.25%, respectively.

The broker currently has a buy rating and $3.95 price target on its shares.

Transurban Group (ASX: TCL)

Another ASX dividend stock that could be a buy according to analysts is Transurban.

It is the toll road operator behind CityLink in Melbourne and WestConnex in Sydney, as well as many other important roads across Australia and North America. It also has a development pipeline that looks set to support its long term growth.

The team at Citi believes the company is well-placed to pay dividends of 69.9 cents in FY 2026 and 74.1 cents in FY 2027. Based on its current share price of $14.82, this would mean dividend yields of 4.7% and 5%, respectively.

Citi has a buy rating and $16.10 price target on Transurban’s shares.

Universal Store Holdings Ltd (ASX: UNI)

Finally, youth fashion retailer Universal Store has been quietly delivering for shareholders despite a challenging retail environment.

Bell Potter believes this trend can continue thanks to its multi-brand strategy across Universal Store, Thrills, and Perfect Stranger and growing private-label penetration.

The broker expects this to support fully franked dividends of 37.3 cents per share in FY 2026 and 41.4 cents per share in FY 2027. Based on the current share price of $8.24, this implies yields of 4.5% and 5%, respectively.

Bell Potter has a buy rating and $10.50 price target on its shares.

The post These top ASX dividend stocks offer 5% yields appeared first on The Motley Fool Australia.

More reading

• What’s driving a 9% divergence in ASX 200 consumer staples vs. discretionary shares?
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• Age Pension worries? 7 income stocks to consider for retirement
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Motley Fool contributor James Mickleboro has positions in Universal Store. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool Australia has recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are on the lookout for some new portfolio additions, then read on.

That’s because analysts have just given their verdicts on three popular options.

Here’s what they are saying about these ASX shares courtesy of The Bull:

Mesoblast Ltd (ASX: MSB)

The team at Securities Vault is positive on this allogenic cellular medicines developer and has named it as a buy.

It highlights that its commercialisation strategy is progressing and its development pipeline is strong. It said:

Mesoblast develops allogenic cellular medicines for treating severe and life threatening inflammatory conditions.This regeneration therapy company offers growth momentum. Mesoblast’s lead product Ryoncil achieved meaningful revenue growth and now benefits from favourable reimbursement codes in the United States.

The company holds a strong cash position of about $US145 million and offers flexibility via a $US50 million convertible note facility to fund the next growth phase. Company commercialisation is progressing and MSB has generated a pipeline of depth.

Paladin Energy Ltd (ASX: PDN)

Analysts at Ord Minnett believe that this uranium miner’s shares have risen too strongly in recent times. And while its performance has been positive, this isn’t enough to justify its valuation. As a result, they have put a sell rating on the stock.

This uranium producer owns 75 per cent of the Langer Heinrich mine in Namibia. It also owns uranium exploration and development assets in Australia and Canada. The company delivered record production in the September quarter, but sales volumes fell on the previous quarter and prior corresponding period.  Despite a decent result, PDN’s share price recently doubled in the past six months and has outpaced its fundamentals.

Xero Ltd (ASX: XRO)

The team at MPC Markets has named this cloud accounting platform provider as a hold.

It notes that it has a significant opportunity in the United States, but points out that small to medium sized enterprises are under pressure. It said:

XRO is a global accounting software provider. The company delivered operating revenue of $NZ1.194 billion for the six months ending September 30, 2025, up 20 per cent on the prior corresponding period. Net profit after tax of $NZ134.78 million was up 42 per cent. The company completed an institutional placement of $1.85 billion in June to fund the company’s acquisition of Melio, a US business-to-business payments platform.

The US is a key expansion market for future earnings, but small to medium sized enterprises are under pressure. The shares have fallen from $194.21 on June 24 to trade at $121.18 on November 19. At these levels, investors can continue to hold, but should monitor developments, particularly in the US.

The post Should you buy Mesoblast, Paladin Energy, and Xero shares? appeared first on The Motley Fool Australia.

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

With so many shares to choose from on the Australian share market, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Lovisa Holdings Ltd (ASX: LOV)

According to a note out of Citi, its analysts have retained their buy rating on this fashion jewellery retailer’s shares with a trimmed price target of $38.45. This follows the release of a trading update at Lovisa’s annual general meeting last week. The broker was pleased with the update and has lifted its profit forecast for the financial year to reflect stronger than expected sales. In addition, Citi has visited a new store design and believes it will be successful in bringing more customers inside. Overall, it sees a lot of value in its shares at current levels following a recent pullback and thinks investors should be snapping them up. The Lovisa share price is trading at $30.62 this afternoon.

Megaport Ltd (ASX: MP1)

A note out of Morgans reveals that its analysts have upgraded this network-as-a-service provider’s shares to a buy rating with a $17.00 price target. The broker has been busy updating its model to reflect a recent capital raising, the acquisition of compute-as-a-service provider Latitude.sh, and network expansion into India. Morgans highlights that the acquisitions accelerate revenue and EBITDA growth while the core MP1 business keeps improving. It notes that since June, its net revenue retention has lifted 2 percentage points to 109%. In addition, revenue and annual recurring revenue growth has been strong. The Megaport share price is fetching $13.29 at the time of writing.

WiseTech Global Ltd (ASX: WTC)

Analysts at Bell Potter have retained their buy rating on this logistics solutions software provider’s shares with a trimmed price target of $100.00. According to the note, the broker was pleased to see management reiterate its guidance at its annual general meeting last week. It believes this guidance reiteration was the first hurdle cleared by management. It is now looking forward to its investor day event next week, when an update will be given on its new commercial model and the launch of its Container Transport Optimisation (CTO) offering. Bell Potter believes WiseTech will achieve the low end of its guidance in FY 2026. The WiseTech Global share price is trading on Monday.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

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

The S&P/ASX 200 Index (ASX: XJO) has returned to form and is on course to start the week with a solid gain. In afternoon trade, the benchmark index is up 1.2% to 8,515.2 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are climbing today:

Gentrack Group Ltd (ASX: GTK)

The Gentrack share price is up 22% to $8.10. This follows the release of the airport and utilities software provider’s FY 2025 results this morning. Gentrack delivered an 8% increase in revenue to NZ$230.2 million and an 18% jump in EBITDA to NZ$27.8 million for the 12 months. And while no firm guidance was given, management reiterated its mid-term target of more than 15% compound annual revenue growth and an EBITDA margin of 15%–20%.

Monash IVF Group Ltd (ASX: MVF)

The Monash IVF share price is up 40% to 85.5 cents. Investors have been buying this fertility treatment company’s shares after it received and rejected “an opportunistic, unsolicited, conditional and non- binding indicative proposal” from a consortium comprising Genesis Capital and Washington H. Soul Pattinson and Co Ltd (ASX: SOL). The indicative cash price offered to shareholders under the proposal was $0.80 per share. However, “the Board has considered the Proposal including with the assistance of its financial and legal advisers and unanimously determined that the Proposal materially undervalues Monash IVF and is not in the best interest of the Company’s shareholders as a whole.”

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price is up 3.5% to $260.59. This morning, the health imaging technology company revealed that it has signed three new contracts with a combined minimum contract value of $29 million. These contracts will be fully cloud-deployed and are planned to be completed within the next six months. Pro Medicus’ founder and CEO, Dr Sam Hupert, said: “They comprise a children’s hospital, a cancer center, and a physician-owned and run regional healthcare provider. This diversity reinforces our belief that our product is ideally suited to virtually all segments of the market, from smaller groups all the way through to some of the largest IDN’s and academic medical centers in the US.”

Qube Holdings Ltd (ASX: QUB)

The Qube share price is up almost 18% to $4.79. This has been driven by news that the logistics solutions company has received a takeover offer from Macquarie Group Ltd (ASX: MQG). The Macquarie Asset Management (MAM) business is offering $5.20 per share for Qube. The company’s chair, John Bevan, said: “The proposal from Macquarie Asset Management is a reflection of the strength of Qube’s business model and our assets, and the quality of our people and culture. We look forward to continuing to engage constructively in the best interests of our shareholders.”

The post Why Gentrack, Monash IVF, Pro Medicus, and Qube shares are racing higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Gentrack Group, Macquarie Group, and Washington H. Soul Pattinson and Company Limited. 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 Gentrack Group, Macquarie Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Australian lithium producers are being sold down on Monday after media reports that Chinese battery giant CATL could restart production at its flagship mine as soon as next month.

Lithium prices have been trending sharply higher in recent weeks, following a sell-off in late August, which has taken the share prices of Australian producers higher.

Large Chinese mine could restart soon

But the bull run appears to have hit a hiccup in the past couple of days, after Bloomberg reported that CATL was planning to restart production at its mine in Jiangxi Province, where mining was halted in August.

Reports have put the mine’s production at about 3% of global lithium production, and CATL has been making progress in recent weeks to have its mining permit at the project reinstated.

The Bloomberg report said unnamed sources had confirmed that the battery maker had formulated a preliminary plan to restart the mine by early December, and had also asked its suppliers and partners to ready themselves in anticipation of production recommencing.

The report said CATL had not responded to requests to comment on the speculation.

Aussie shares bear the brunt

Shares in Australian lithium producers were leading falls among S&P/ASX 200 Index (ASX: XJO) companies on Monday, with the Gina Rinehart-backed Liontown Resources Ltd (ASX: LTR) down 3.4% to $1.42.

Shares in Mineral Resources Ltd (ASX: MIN) were 2.6% lower at $47.55, IGO Ltd (ASX: IGO) was off 2.6% at $6.30, and Pilbara Minerals Ltd (ASX: PLS) shares were 2.3% lower at $3.81.

Reuters was reporting late last week that the CATL news pushed lithium prices quoted on the Guangzhou Futures Exchange sharply lower, down 9% on Friday, after hitting the highest levels since June 2024 the previous day.

New lithium cycle to underpin gains

The team at Macquarie remains bullish on lithium, stating in a research note to clients last week that a new lithium cycle has begun.

As they said in their note to clients:

As highlighted in our September note, we identified early signs of a new lithium cycle, driven by a widening imbalance between supply and demand. This constructive view has been validated by the market over the past two months, evidenced by continued inventory drawdowns and a steady increase in spot spodumene prices.

Macquarie’s top picks in the lithium sector were IGO, Elevra Lithium Ltd (ASX: ELV), and Patriot Battery Metals Ltd (ASX: PMT).

Among other shares, it has a neutral rating on Atlantic Lithium Ltd (ASX: A11) and an underperform rating on Liontown.

The post Why are shares in Aussie lithium producers being sold off today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta Platforms, and Tesla (NASDAQ: TSLA) form an elite group of companies known as the “Magnificent Seven” due to their industry leadership and market influence.

As many of these companies continue to deliver market-beating returns, the Magnificent Seven now comprise a remarkable 35% of the value of the S&P 500. 

In a series of articles, I’ll be ranking each of these stocks and discussing why some are still chock-full of untapped potential, while others should be avoided by investors.

Here’s why Tesla is my least favorite of the bunch to buy in 2026. 

Tesla’s core business growth is slowing

If Tesla can effectively monetize some of its larger bets, such as its planned Robotaxi network, its humanoid robots, or its other artificial intelligence (AI) endeavors, it could easily be the single best Magnificent Seven stock to buy and hold for the next five to 10 years.

But that’s a big “if.”

The major difference between Tesla and the other Magnificent Seven companies is that its core business is struggling.

By comparison, revenue growth remains strong for Apple’s iPhone and services categories. Amazon Web Services generates gobs of free cash flow that funds the company’s other ambitions. Alphabet and Microsoft each generate sizable earnings from a variety of digital segments, including cloud computing infrastructure, where they’re both major players. Meta Platforms has its highly profitable “family of apps” segment, which brings in more than enough to support its billions of dollars in losses from Reality Labs, which contains its metaverse-related operations. And Nvidia’s compute and networking segment continues to deliver jaw-dropping results, while its smaller segments are also highly profitable.

By contrast, Tesla’s electric vehicle (EV) deliveries were trending downward in the first half of 2025, though it remains the market leader. Its energy storage business is on firmer footing, but it makes up a small part of the top line. In the third quarter, Tesla grew automotive revenue just 6% year over year as deliveries rebounded, up 7%. However, the company’s operating margin fell to just 5.8% — a steep decline from 10.8% a year earlier.

Tesla is spending a ton of money on artificial intelligence and robotics, but it has yet to see a payoff from those investments.

This past summer, Tesla launched its autonomous ride-hailing service in Austin, Texas, and it has since expanded it to a few other markets, including the San Francisco Bay Area. However, it remains to be seen how profitable it will be at scale.

It’s also worth noting that, so far, that service is being provided by standard Model Y EVs that have been outfitted with Tesla’s Robotaxi technology, not the much-discussed Cybercab, which is not yet in production. And in most markets, regulators are still requiring human monitors for those autonomous vehicles.

There are better buys than Tesla for 2026

Tesla’s Robotaxis feature pioneering-edge AI, which presents distinct challenges compared to embedding AI within smartphones or personal computers, so the company deserves credit for making progress in that field.

However, the risks of investing in Tesla simply aren’t worth the potential rewards at this time, especially given the fact the stock is trading at 178 times expected 2026 earnings.

Since Tesla’s valuation appears to be increasingly disconnected from its core EV business and based more on the potential of new ventures that have yet to prove themselves, investors may want to take a “wait and see” approach to the stock at this time. There are many other compelling buys in big tech.

Stay tuned to find out how the remaining Magnificent Seven stocks stack up in my rankings for 2026.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Ranking the best “Magnificent Seven” stocks to buy for 2026. Here’s my No. 7 pick. appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

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• How does Tesla make money?
• US stocks will underperform over next decade: Goldman Sachs
• 5 top ASX ETFs to buy and hold for 5 years+
• Why AI won’t create a new batch of tech giants — It will cement the old ones

Daniel Foelber has positions in Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.