Category: Stock Market

Shares in consumer goods retailer JB Hi-Fi Ltd (ASX: JBH) have come down from levels well above $100 recently, which the team at RBC Capital Markets says creates a buying opportunity.

The shares closed at $113.52 the day before the company’s annual general meeting on October 30, when the company also released a trading update which said sales for the first quarter were “in line with the group’s expectations”.

The market did not appear to like the numbers in the update, however, which showed that comparable sales at JB Hi-Fi Australia were up 5% compared with the same period the previous year, and sales at The Good Guys were up 2.4%.

Performing well on costs

RBC Capital Markets has initiated coverage of JB Hi-Fi with a sector perform rating, and is positive on the company’s outlook, saying the company has an “industry-best cost base efficiency”.

In terms of competition, however, they are forecasting heavy market share gains for online competitor Amazon.

RBC analysts had this to say about JB Hi-Fi:

JB Hi-Fi runs one of the leanest cost of doing business margins and capex/ sales ratios in global consumer electronics retail. JB Hi-Fi’s seamless omnichannel experience is a competitive advantage, in our view. Surveys indicate about 85% of consumers still want to shop in-store to varying extents, and we forecast about 60% – 70% of JB HiFi’s sales growth to come from bricks and mortar over the next three years.  

In terms of specific products which will provide a boost, the end of support for Windows 10 “is a hard catalyst for a refresh with Microsoft‘s own support stressing security risks following end-of-support”.

RBC also notes that there is room for further growth in the robot vacuum sector, with penetration being low in Australia and forecasted to grow at a rate of up to 16.2% year over year.

Amazon looms as major competitor

On the downside, Amazon “poses a material and growing competitive threat”, RBC said.

Amazon now has the levers of range, price and fulfilment in place to facilitate a large step-change in market share, in our view. We estimate Amazon’s share of total Australian online retail will about double over the next 5 years, to about 24%. Relative to comparable markets, this level of penetration is still low.

RBC stated that, over the Black Friday sales period, Amazon was approximately 2.3% cheaper than JB Hi-Fi on average across the nine categories they surveyed.

RBC has a price target of $101 on JB Hi-Fi shares, compared with the company’s closing price of $92.92 on Tuesday.

JB Hi-Fi also pays a fully franked dividend of about 4% according to the ASX website.

The post How high does RBC Capital think JB Hi-Fi shares can go? 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 positions in and has recommended Amazon and Microsoft. 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 Amazon and Microsoft. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The TPG Telecom Ltd (ASX: TPG) share price is in focus today after the company wrapped up its Retail Reinvestment Plan, raising $73.4 million and boosting minority ownership.

What did TPG Telecom report?

• Raised approximately $73.4 million through the Retail Reinvestment Plan at $3.566623 per new share
• Issued about 20.6 million new fully paid ordinary shares to participating retail investors, representing a 53% participation rate
• Total new shares issued under both retail and institutional components reached roughly 103.7 million
• Free float increased to 27%, up from 23% prior to the plans
• Total gross proceeds from both reinvestment components achieved around $373 million
• Proceeds will be used to further pay down bank borrowings, amounting to $2.7 billion repaid since 30 June 2025

What else do investors need to know?

The Retail Reinvestment Plan closed on 5 December 2025, offering eligible shareholders the chance to reinvest their recent capital return into new TPG Telecom shares at a 5% discount to average recent trading prices. The new shares will commence trading on the ASX from 11 December 2025 and carry the same rights as existing shares.

Any applications from ineligible shareholders were declined, with refunds to be processed by 17 December 2025. The company highlights the initiative’s role in strengthening its capital structure and increasing its free float on the ASX.

What’s next for TPG Telecom?

With the completion of this capital initiative, TPG Telecom has improved its balance sheet flexibility by reducing bank borrowings significantly. Looking ahead, the company appears set to focus on sustainable growth while optimising its capital mix.

Investors will be monitoring how these changes support TPG’s longer-term strategy and shareholder value, particularly as the increased free float may broaden the company’s appeal to a wider investor base.

TPG Telecom share price snapshot

Over the past 12 months, TPG Telecom shares have fallen 17%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen around 2% over the same period.

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The post TPG Telecom lifts free float after $73 million Retail Reinvestment Plan appeared first on The Motley Fool Australia.

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• Ampol delivers $649m RCOP EBITDA and updates investors on strategic growth
• GQG Partners share price in focus after November FUM update
• Ramelius Resources launches share buy-back: What investors need to know
• 2 compelling ASX 200 shares this fund manager rates as buys
• After falling 47% in a year, is the James Hardie share price a buy?

Motley Fool contributor Laura Stewart 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 prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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

Electric carmaker and robotaxi company Tesla (NASDAQ: TSLA) is one of the largest companies in the stock market, led by CEO Elon Musk, one of the most prolific tech founders of our time.  

Tesla is the first company to widely commercialize electric vehicles, which are viewed as a critical innovation in helping to wean the planet off of fossil fuels that have greatly contributed to global warming. While Tesla’s core EV business has struggled due to rising competition and fewer government incentives, investors are now more focused and extremely excited about Tesla’s autonomous ride-hailing fleet, full self-driving technology, and Optimus humanoid robots. 

This explains why the stock now trades at a massive valuation of around 200 times forward earnings. Investors believe Tesla is on the groundbreaking level of new industries with massive markets, and that Tesla will be able to gobble up market share with its first-mover advantage.

The bulls have been right so far

Tesla remains one of the most disputed battleground stocks on Wall Street. And while many, including myself, are skeptical about continuing to buy the stock at such a rich valuation, the bulls have prevailed so far.

TSLA data by YCharts

As you can see in the chart, $3,500 invested in Tesla at the end of 2013 is now worth nearly $174,000 for a total return of 4,869%. Meanwhile, the same $3,500 invested in the broader benchmark S&P 500 (SNPINDEX: ^GSPC) is only worth $13,320, which is still a strong return.

While Tesla’s future is uncertain, the bulls have now been right for many years. 

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

The post If you’d invested $3,500 in Tesla 12 years ago, here’s how much you’d have today 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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Bram Berkowitz 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 Tesla. 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.

The Ampol Ltd (ASX: ALD) share price is in focus after the company released its latest financial highlights, including a Group RCOP EBITDA of $649 million for 1H 2025 and an interim dividend of 40 cents per share, fully franked.

What did Ampol report?

• Group RCOP EBITDA for 1H 2025: $649 million
• Group RCOP EBIT for 1H 2025: $404 million
• Statutory NPAT loss of $25 million (attributable to parent)
• Interim dividend: 40 cents per share, fully franked
• Group leverage at 2.8x; net borrowings of $2.8 billion
• Total sales volume year-to-date: 18.5 billion litres

What else do investors need to know?

Ampol’s October and November trading update showed the Lytton Refiner Margin rising from US$13.78 per barrel in October to US$17.90 in November, with November refinery production reaching 532 million litres. The third quarter RCOP EBIT was ahead of the earlier 2025 quarterly average, marking a solid improvement from the third quarter of the previous year.

The company continues to deliver on its U-GO value fuel site’s rollout, reporting strong early success with a 50% uplift in fuel volumes at converted locations and an average EBITDA improvement of $300,000 per site. Ampol is also progressing its acquisition of EG Australia, targeting completion by mid-2026, pending regulatory approval.

What’s next for Ampol?

Looking ahead, Ampol’s strategy is centred on growing its fuel and convenience retail platform across Australia and New Zealand, improving its retail segmentation with more U-GO site conversions, and continuing upgrades to premium site formats and product offerings. The acquisition of EG Australia is expected to further re-shape Ampol’s earnings mix toward more resilient, retail-driven sources.

Ampol remains committed to maintaining its investment-grade credit rating and is advancing its $50 million productivity program to reduce costs through 2025. The company is also engaging with the government on the Fuel Security Services Payment review and exploring new opportunities in energy transition, including EV charging and renewable fuels.

Ampol share price snapshot

Over the past 12 months, Ampol shares have risen 13%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen around 2% over the same period.

View Original Announcement

The post Ampol delivers $649m RCOP EBITDA and updates investors on strategic growth appeared first on The Motley Fool Australia.

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• TPG Telecom lifts free float after $73 million Retail Reinvestment Plan
• GQG Partners share price in focus after November FUM update
• Ramelius Resources launches share buy-back: What investors need to know
• 2 compelling ASX 200 shares this fund manager rates as buys
• After falling 47% in a year, is the James Hardie share price a buy?

Motley Fool contributor Laura Stewart 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 prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Ramelius Resources Ltd (ASX: RMS) shares are storming higher on Wednesday morning.

At the time of writing, the ASX 200 gold stock is up 10% to $3.71.

Why is this ASX 200 gold stock jumping?

Investors have been hitting the buy button today after the gold miner announced plans to undertake a major share buyback program.

According to the release, the Ramelius board has approved up to $250 million in share buybacks to be carried out over the next 18 months. This is expected to commence on or around 24 December 2025.

But the returns won’t stop there. The board has also approved an increase in the minimum dividend to 2 cents per share per annum. This is the equivalent of approximately $38.5 million per year. The company notes that these initiatives form part of its capital allocation pillars in FY 2026 and FY 2027.

Its three capital allocation pillars, in order of priority, are re-investment into the business, increase in shareholder returns, and maintaining a strong balance sheet.

The ASX 200 gold stock highlights that the buyback is an attractive and flexible way to return capital to shareholders above the 2 cents per share minimum dividend.

Though, it warns that the timing and actual number of shares purchased under the buyback will depend on market conditions, the prevailing share price, and other considerations.

Maintain and grow

Commenting on the news, the ASX 200 gold stock’s managing director, Mark Zeptner, said:

At the time of the release of our 5-Year Growth Pathway to 500koz, the Ramelius Board gave clear direction to management that we need to “maintain and grow” shareholder returns. We are demonstrating this today in the form of a A$250 million share buyback program and an increase in the minimum dividend payable.

This capital management initiative is underpinned by our track record of consistently delivering strong free cash flow and our confidence that it will continue into the future. Importantly, we remain fully funded, our production profile is growing and we anticipate further increases in our free cash flow returns. As our capital investments over the coming years start to yield benefits, we anticipate being able to provide shareholders with even better returns.

Looking ahead, the company revealed that in FY 2028, the board plans to reset and grow the payout ratio, which is currently set at a maximum level of 30% of free cash flow, with a new payout ratio factoring in both dividends and share buybacks.

The post Guess which ASX 200 gold stock is jumping 10% on $250m shareholder return appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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.

If you have a high tolerance for risk, then it could be worth checking out the small cap ASX stock in this article.

That’s because Bell Potter believes the signing of an “impressive deal” could be the catalyst to sending its shares materially higher.

Which small cap ASX stock?

The stock that Bell Potter is bullish on is Immutep Ltd (ASX: IMM).

It is a clinical-stage biopharmaceutical company that is developing a novel LAG-3 (lymphocyte activation gene-3) immunotherapy for cancer and autoimmune disease.

Its core technology is based on the LAG3 protein, which is a key mediator of the immune system.

Immutep’s lead drug candidate, eftilagimod alpha (efti), is currently undergoing clinical trials in five different oncology indications.

What is the broker saying?

Bell Potter was very pleased to see the small cap ASX stock sign an exclusive license agreement with Dr Reddy’s Laboratories (NYSE: RDY). This is for the development and commercialisation of its lead asset Efti in all countries outside North America, Europe, Japan and China.

As part of the deal, Immutep will receive US$20 million (A$30 million) upfront, US$350 million (A$528 million) in potential development and commercial milestones, and double-digit royalties on net sales.

Commenting on the deal, the broker said:

We view this as an impressive deal that provides: (1) financial and industry validation from a credible pharma company in Emerging Markets, (2) significant non-dilutive cash in the form of A$30m upfront plus potential milestones, (3) leaves the commercial rights to the most lucrative US, EU and Japanese markets (>90% of market value) unencumbered for future licensing/M&A opportunities, and (4) could spur other industry parties (most obviously clinical collaborator Merck) to more actively engage for rights to the US and EU markets.

Big potential returns

According to the note, the broker has responded to the update by retaining its speculative buy rating on the small cap ASX stock with an improved price target of 60 cents (from 46 cents).

Based on its current share price of 32 cents, this implies potential upside of almost 90% for investors over the next 12 months.

Commenting on its recommendation, Bell Potter said:

We have updated forecasts to include contributions from the Dr Reddy’s deal in FY26 and FY27. The deal sets a precedent for the de-risked global valuation of Efti to be closer to ~US$7b excluding royalties, a large premium to the closing market cap of $472m. There is clear multi-fold upside potential for IMM should it succeed through the current Phase 3 lung cancer trial in a NSCLC market valued at US$12b/yr in the US alone. We maintain our BUY (speculative) recommendation and valuation is increased to $0.60/sh after increasing licensing revenue forecasts.

The post Broker says this small cap ASX stock can rise ~90% following ‘impressive deal’ appeared first on The Motley Fool Australia.

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• Why Brightstar Resources, Immutep, Pilbara Minerals, and Race Oncology shares are roaring higher
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Motley Fool contributor James Mickleboro 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.

The GQG Partners (ASX: GQG) share price is in focus after the fund manager reported total funds under management (FUM) of US$166.1 billion as at 30 November 2025. Net flows for the month were negative, with a combined outflow of US$2.4 billion across its main strategies.

What did GQG Partners report?

• Total FUM at 30 November 2025: US$166.1 billion (up from US$163.7 billion at 31 October 2025)
• Monthly net outflows: US$2.4 billion
• Year-to-date net outflows: US$1.8 billion
• International Equity FUM: US$71.4 billion
• Global Equity FUM: US$37.8 billion
• Emerging Markets Equity FUM: US$41.3 billion
• US Equity FUM: US$15.6 billion

What else do investors need to know?

GQG Partners saw outflows across all major categories during November, though the overall FUM still grew month-on-month thanks to market movements. The International Equity strategy saw the largest FUM, growing slightly from the previous month, but experienced a monthly net outflow of US$1.0 billion.

The company noted that its Private Capital Solutions activity is not included in this update. FUM figures include both fee-paying and non-fee-paying funds and are rounded to the nearest US$100 million.

What’s next for GQG Partners?

Looking ahead, GQG Partners will likely remain focused on retaining client assets and stabilising net flows, while navigating evolving market conditions. Investors may watch for future updates on flows and any insight into product strategy or geographic diversification.

With FUM levels holding firm despite outflows, attention will turn to any further changes in investor sentiment or the firm’s approach to attracting new clients.

GQG Partners share price snapshot

Over the past 12 months, GQG Partners shares have fallen 21%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen around 2% over the same period.

View Original Announcement

The post GQG Partners share price in focus after November FUM update appeared first on The Motley Fool Australia.

More reading

• TPG Telecom lifts free float after $73 million Retail Reinvestment Plan
• Ampol delivers $649m RCOP EBITDA and updates investors on strategic growth
• Ramelius Resources launches share buy-back: What investors need to know
• 2 compelling ASX 200 shares this fund manager rates as buys
• After falling 47% in a year, is the James Hardie share price a buy?

Motley Fool contributor Laura Stewart 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 recommended Gqg Partners. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Ramelius Resources Ltd (ASX: RMS) share price is in focus after the company announced a new on-market share buy-back, aiming to repurchase up to 73.96 million shares out of 1.92 billion on issue. The buy-back is set to begin on 24 December 2025 and run until June 2027.

What did Ramelius Resources report?

• On-market buy-back of up to 73,964,497 ordinary shares
• Total shares on issue: 1,924,864,769
• Buy-back to be conducted via broker UBS
• Buy-back price will be in Australian Dollars (AUD)
• Buy-back does not require security holder approval
• Buy-back period: 24 December 2025 to 23 June 2027

What else do investors need to know?

This share buy-back gives Ramelius Resources flexibility to improve capital management and potentially enhance shareholder returns. The buy-back will be executed on-market, allowing the company to purchase shares at market price over an 18-month window.

Investors should be aware that no specific minimum repurchase amount was set, and the company reserves the right to repurchase up to the maximum disclosed. All buy-backs will be in cash as shares are bought through the market.

What’s next for Ramelius Resources?

The buy-back provides the company with an option to return capital to shareholders while also giving flexibility to respond to market conditions. Investors can expect ongoing updates as Ramelius proceeds with the buy-back and any impact it may have on the share price and earnings per share.

Attention will likely turn to how the company manages its broader capital allocation, balancing investment in its resources portfolio alongside shareholder returns.

Ramelius Resources share price snapshot

Over the past 12 months, Ramelius Resources shares have risen 43%, outperforming the S&P/ASX 200 Index (ASX: XJO) has risen around 2% over the same period.

View Original Announcement

The post Ramelius Resources launches share buy-back: What investors need to know appeared first on The Motley Fool Australia.

More reading

• TPG Telecom lifts free float after $73 million Retail Reinvestment Plan
• Ampol delivers $649m RCOP EBITDA and updates investors on strategic growth
• Guess which ASX 200 gold stock is jumping 10% on $250m shareholder return
• GQG Partners share price in focus after November FUM update
• 2 compelling ASX 200 shares this fund manager rates as buys

Motley Fool contributor Laura Stewart 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 prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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

Meta Platforms (NASDAQ: META) shares popped 3.4% on Thursday despite a mere 0.22% increase in the Nasdaq Composite on reports that the company was cutting metaverse spending in favor of artificial intelligence (AI) and smart glasses.

Here’s why Meta’s capital is better used on non-metaverse projects and why the growth stock is a great buy in December. 

The harsh reality of Reality Labs

Facebook changed its name in October 2021 to Meta Platforms to better capture the company’s expansion beyond its flagship social media app. A name change was the right move, as Instagram is arguably more valuable than Facebook. Along with WhatsApp and Messenger, the four apps are known as Meta’s Family of Apps.

The name change to Meta Platforms reflected an increased emphasis on engaging through virtual worlds — a far more ambitious digital frontier than the desktop and mobile silos the Family of Apps resides in. The name change was followed by a sharp decline in Meta’s stock price, which fell 64.2% in 2022 compared to a 33.1% decrease in the Nasdaq.

The sell-off was due to a decline in Meta’s Family of Apps operating income and losses on metaverse, augmented reality, and virtual reality spending, which is under the company’s research and development arm, Reality Labs.

Meta’s losses at Reality Labs have continued to increase. But its Family of Apps have been the saving grace, as operating income from that segment is more than offsetting mounting losses at Reality Labs.

Data source: Meta Platforms.

Family of Apps is more than absorbing Reality Labs’ losses

Since the start of 2023, Meta’s stock price is up a mind-numbing 450% compared to a 124.6% gain in the Nasdaq as investors have given Meta the benefit of the doubt due to excellent growth from the Family of Apps.

Yet despite that increase, Meta’s profits are increasing at such a torrid rate that it’s still the cheapest “Magnificent Seven” stock, a group of tech-focused companies that includes Meta, Nvidia, Apple, Alphabet, Microsoft, Amazon, and Tesla.

As you can see in the following chart, Meta’s revenue and earnings have exploded higher in recent years. And even when factoring in Reality Labs losses, Meta’s operating margins are still sky high at 43.3%.

META Revenue (TTM) data by YCharts

Looking at the nine months ended Sept. 30, Meta generated $139.8 billion in Family of Apps revenue and $71.7 billion in Family of Apps operating income.  This means that without the Reality Labs drag on profitability, Meta’s advertising revenue operating margin would be 51.3%.

For context, Nvidia, which is an ultra-profitable company with customers lining up out the door for its graphics processing units, has trailing 12-month operating margins of 58.8%. This goes to show just how much of a cash cow Family of Apps is.

Meta’s investment thesis just got even better

Meta’s decision to cut back on metaverse spending in favor of AI and its Family of Apps is excellent news for long-term investors, especially value investors who are interested in Meta for its high free cash flow, impeccable balance sheet, and growing dividend. Before getting too excited about the news, investors may want to hear commentary directly from CEO Mark Zuckerberg and the rest of the Meta management team to ensure that the strategic shift is lasting and not a temporary change of heart.

The social media giant is investing heavily in AI by building its own data centers, refining its search algorithm to better align content with user interests and connect advertisers with relevant buyers, and developing its Llama large language model to power its Meta AI assistant, among other initiatives. With such a massive opportunity in AI, there’s less reason for Meta to continue flooding Reality Labs with capital with no return on investment in sight.

Meta was already one of my highest conviction growth stocks to buy in 2026. This news only makes the investment thesis more attractive, making Meta a screaming buy now.

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

The post Meta Platforms stock jumps on Metaverse spending cuts. Here’s why the growth stock is a screaming buy before 2026 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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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.

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

Nvidia (NASDAQ: NVDA) has been an excellent stock to own over the past three years, but the bullish sentiment around the company is starting to fade. Investors are growing increasingly worried about rising competition, and concerned that Nvidia may be losing its edge. However, I don’t think that’s the case. In fact, there are three excellent reasons why I think investors should consider scooping up shares before 2026 arrives.

1. The rise of its competitors may stem from its lack of supply

There are two parts to the bearish thesis around Nvidia’s stock. First, rising competition could dethrone Nvidia from its position as the top artificial intelligence computing unit provider. Its graphics processing units (GPUs) are the most flexible and powerful options available, but they could lose market share to application-specific integrated chips (ASICs) in the near future, such as Tensor Processing Units (TPUs) from Alphabet.

Another bearish assumption is that the AI infrastructure buildout is going to slow down as the companies involved come to reckon with the meager returns on investment that those capital expenditures have thus far delivered. Investors fear that this issue will persist, and that the hundreds of billions being spent to construct AI data centers may make little to no profit.

I think both of these concerns are fair arguments, but they don’t reflect reality quite yet. Addressing the first concern, Nvidia noted during its Q3 earnings call that it is “sold out” of cloud GPUs. As a result, AI hyperscalers are turning somewhat more to alternative computing units. While this could eat into Nvidia’s market share, it also helps the company avoid getting overextended. Nvidia has had problems during some prior chip cycles when it ordered too much supply amid rising demand, then was left with excess inventory that it had to take huge losses on after the trends driving demand peaked.

I don’t foresee this being an issue in the AI-accelerator niche in the near future.

The second point is more reasonable, but with all of the AI hyperscalers announcing record capital expenditures for 2026, I don’t see it as a pressing issue. Data centers take years to construct, and the ball is already rolling on many of these projects. Nearly all of the AI hyperscalers have asserted that they see the risk of underbuilding as being far greater than the risk of overbuilding. As a result, the buildout will continue.

2. Nvidia’s 2026 is expected to be excellent

Despite the market turning somewhat bearish on Nvidia, Wall Street analysts still project monster growth for the company. For its fiscal 2027 (which will end in January 2027), they expect Nvidia’s revenue to rise by 48%. That would be an incredible growth rate for an already massive enterprise.

As long as Nvidia’s stock isn’t carrying too much of a premium already, it should be able to convert a substantial amount of that top-line growth into stock price gains. Right now, it trades at 24 times next year’s expected earnings, which isn’t necessarily cheap. However, it’s far cheaper than many of its peers, and considering the company’s growth rate, I think it’s a reasonable price to pay for the stock now.

NVDA PE Ratio (Forward 1y) data by YCharts.

3. The AI buildout could last for many years

Although there are growing concerns surrounding the sustainability of the AI buildout, the reality is that most companies involved think it will last for many years. Nvidia rival AMD projects a compound annual growth rate for its data center revenue of 60% over the next five years. Nvidia projects that global data center capital expenditures will rise from $600 billion in 2025 to $3 trillion to $4 trillion by 2030, and it’s well positioned to capture a significant chunk of that spending. Investors should therefore take advantage of the recent weakness in Nvidia’s stock to scoop up shares, as its price could rise heading into the new year.

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

The post 3 reasons to buy Nvidia stock like there’s no tomorrow 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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• Better artificial intelligence stock: Palantir Technologies vs. Nvidia
• Prediction: Nvidia stock is going to soar past $300 in 2026
• How to invest your first $1,000 in the share market the smart way

Keithen Drury has positions in Alphabet and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Advanced Micro Devices, Alphabet, and Nvidia. The Motley Fool Australia has recommended Advanced Micro Devices, Alphabet, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.