Stock Pick

  • Sequoia partners share how they decide which startups get a yes

    Sequoia Capital partner Alfred Lin
    Sequoia Capital partner Alfred Lin shared how the firm invests in outliers.

    Big Event Media/Getty Images for HumanX Conference

    • Sequoia partners said they prioritize conviction over consensus in startup investment decisions.
    • The firm uses a voting system to gauge conviction, valuing high variance in partner opinions.
    • Sequoia trains junior investors to embrace risk to spot "outliers."

    Sequoia's partners go into investment decision meetings to determine whether startups make the cut — and there's a system for striking gold, two partners said.

    In an episode of the "Jack Altman" podcast released on Tuesday, Sequoia partners Alfred Lin and Pat Grady shared how their team decides which startups get a cheque.

    "We've been recording the number that everybody votes on every investment for more than a decade now," Grady said. "Our internal data shows that consensus versus non-consensus does not matter at all."

    He added: "Presence of conviction is what matters."

    The storied venture capital firm, based in Menlo Park, has invested in companies including Apple, Nvidia, Reddit, and SpaceX. Its more recent investments include prediction markets company Kalshi, and the legal tech startup Harvey.

    Grady, who has been with the firm for nearly 19 years, explained that before a startup gets a yes or no, everyone on the team votes on a scale of one to 10. A score above six is considered "positive," and a score of four or below is considered "negative."

    "If everybody's a six, probably shouldn't make the investment. It's consensus, but nobody has conviction," he said. "If three people are nines and three people are one, we should probably make the investment because the presence of the nines is a much more powerful signal than the presence of the ones."

    Lin, who has been with the firm since 2010, said they follow this strategy because the firm is in the business of risk-taking.

    "We need that volatility because the truth is not somewhere in the middle where everybody agrees," he said.

    The partners said that they train their junior investors, who are historically "A+" students, to build a risk appetite.

    "A lot of the people that join our team haven't had much failure, and we have to help them get comfortable with it because otherwise we're not going to get the outlier wins," Grady said.

    Read the original article on Business Insider

  • Ukraine’s ground robots are surging in popularity, but have yet to carry out even 1% of its total drone missions

    A participant uses a remote control to operate an uncrewed ground vehicle.
    Uncrewed Ground Vehicles are emerging quickly in Ukraine, but only carried out 2,000 combat missions compared to 304,000 UAV combat missions in November.

    Ukrinform/NurPhoto via Getty Images

    • UAVs are still dominating Ukraine's war, accounting for 60% of all strikes Kyiv's forces conducted.
    • Ukraine's military chief said aerial drones conducted 304,000 missions in November.
    • That's compared to just 2,000 missions run by ground drones, a rising technology in the war.

    Ground drones are growing more popular on Ukraine's front lines, but they're still vastly overshadowed by the small aerial drones made famous in the war.

    In November, uncrewed ground vehicles accounted for less than 0.66% of Ukraine's total drone missions.

    Usage numbers were announced on Tuesday by Oleksandr Syrskyi, the commander in chief of Ukraine's armed forces, as he gave a statement on the war situation this winter.

    "At the current stage of the war, it is unmanned aerial vehicles that provide about 60% of all strikes on enemy targets," Syrskyi wrote.

    The military chief said that in November alone, Ukrainian uncrewed aerial vehicles, or UAVs, carried out over 304,000 missions, striking or destroying roughly 81,500 targets.

    "Over the past six months, this indicator has been constantly growing," Syrskyi added.

    Meanwhile, Ukrainian uncrewed ground vehicles, or UGVs, carried out 2,000 missions in the same timeframe, he said.

    The statistics underscore just how aerial drones continue to dominate the battlefield in Ukraine. UGVs, an emerging technology, are still finding their footing in the war as Kyiv moves to integrate them at a wider scale among its military units.

    Amid the push, dozens of Ukrainian companies and units have been debuting their own UGVs, which can range from miniature buggies to full-size trucks mounted with remote machine gun turrets.

    Ukrainian Army soldiers of the 68th Separate Jaeger Brigade train in the use of uncrewed ground robots for the frontline,
    The use of ucnrewed ground vehicles on both sides has grown consistently in the last year or so, and one Ukrainian brigade is showing how they can work with FPV drones to overcome poor weather.

    Scott Peterson/Getty Images

    The ground drones are particularly useful because they can perform dangerous frontline missions that human soldiers would otherwise be required to carry out. Ukrainians are building them to serve a variety of purposes, from direct assaults and mine-clearing to monitoring roads and delivering frontline supplies.

    Some units have begun using aerial and ground systems in tandem, such as troops in Pokrovsk who used a UGV to spot incoming Russian vehicles through fog and later attacked with exploding drones.

    Russia's ramping FPV production

    Russia has also been pioneering new drones, including UGVs for logistics and rocket artillery. On the aerial front, the Kremlin's forces were the first to introduce unjammable, fiber-optic drones that are now proliferating on the battlefield.

    This year, Moscow has repeatedly been reported to be more readily integrating drone warfare into its ranks, scaling up mass production, forming official drone units, and creating new warfighting doctrine after observing Ukrainian tactics.

    Syrskyi wrote that Russia had, at one point, reached a "period of a certain parity" with Ukraine in the use of first-person-view drones, or the small hobby drones souped up to fly explosives into targets.

    "As reported by our intelligence bodies, the enemy seeks to reach monthly deliveries of up to half a million FPV drones to its troops," he wrote.

    Now, however, Syrskyi claimed that Ukraine has recently surpassed Russia in first-person-view drone usage.

    "The Ukrainian response must be asymmetric and effective: strengthening the fight against enemy drones and destroying the infrastructure of the enemy's unmanned forces units," he added.

    Syrskyi's statement offered a grim recap of the war in recent months, saying that Ukraine's forces have "faced some of the most serious challenges since the beginning of the full-scale war."

    Both civilians and soldiers in the country must soon grapple with another brutal winter, as temperatures are expected to consistently drop below freezing in January and February. Russia has been targeting local energy grids, disrupting Ukraine's access to reliable heating.

    Read the original article on Business Insider

  • Rivian’s CEO said self-driving cars shouldn’t just be able to drive, but also run errands for you like a secretary

    Rivian CEO Robert "RJ" Scaringe speaks at the launch of the Rivian R3X electric vehicle at the Rivian South Coast Theater in Laguna Beach, California, on March 7, 2024.
    Rivian's CEO RJ Scaringe said self-driving cars should be able to do a lot more than drive.

    PATRICK T. FALLON/AFP via Getty Images

    • Rivian wants its cars to do more than drive themselves.
    • CEO RJ Scaringe said he wants them to be able to coordinate servicing so their owners don't have to.
    • The company is gearing up to start production of the R2, a $45,000 SUV, which is its cheapest EV to date.

    Rivian CEO RJ Scaringe wants his EVs to be able to service themselves.

    In an interview with Fortune released on Tuesday, the host asked Scaringe what AI should and shouldn't do in a car. Scaringe, who is also the automobile company's founder, replied that self-driving capabilities have been talked about for years in the EV industry, but he wants his cars to go beyond that.

    Scaringe said he was "very bullish" on his cars being self-driving in the next couple of years, such that "you can own a car, but it can drop you at the airport, it can pick your kids up from school, it can go get things from the store for you."

    But beyond driving, he said the car can help with a lot of things that people don't want to be doing, like handling service appointments.

    "So if the vehicle has an issue, it's actually not a positive part of the customer experience to have to coordinate a service activity or to coordinate parts, deliver any of those things."

    "We want all that to happen behind the scenes and all that to be powered through AI," he said.

    Scaringe's comments echo those of Rivian's software chief, Wassym Bensaid, from last year.

    "We are not necessarily chasing full self-driving, we're not chasing robotaxis," Bensaid said to Business Insider. "Our goal is incremental improvements to the safety and convenience for customers."

    The carmaker does not currently have fully autonomous cars. But its Gen 2 models come with the Rivian Autonomy Platform features, which can automatically steer, brake, and accelerate on select highways, among other capabilities.

    The company is now gearing up to start production on its cheapest EV to date, the R2 model, which will be a $45,000 SUV.

    Rivian, which is headquartered in Irvine, California, has seen its stock price rise by 33% since the start of the year. However, the company has endured multiple rounds of layoffs in recent years, with the most recent — a 4% cut in its workforce — announced in October.

    In November, Rivian doubled Scaringe's pay package from $1 million to $2 million, along with performance-based stock options that could be worth up to $4.6 billion, per an SEC filing.

    Read the original article on Business Insider

  • Trump defends tariffs as he launches economic tour: ‘You can give up certain products. You could give up pencils.’

    U.S. President Trump in Pennsylvania
    President Donald Trump launched an economic tour, defending his tariff policies and record.

    Jonathan Ernst/REUTERS

    • President Donald Trump launched an economic tour, defending his tariff policies and record.
    • The rising cost of living and affordability are key issues ahead of the midterm elections.
    • Trump has rolled back some tariffs, especially on food, amid ongoing inflation concerns.

    President Donald Trump is standing by his tariffs, at least in theory.

    Under the banner "Lower Prices, Bigger Paychecks," Trump kicked off the first of a series of speeches to promote his economic message in Mount Pocono, Pennsylvania, as polls indicate the country is increasingly concerned about the rising cost of living.

    "They always have a hoax," Trump told the crowd, referring to criticism from Democrats that his policies drove up prices. "The new word is 'affordability.'"

    "Democrats are like, 'prices are too high.' Yeah, they're too high because they cause them to be too high," Trump added. "But now they're coming down."

    Later, he said, "I can't say affordability is a hoax because I agree the prices were too high. So I can't go to call it a hoax because they'll misconstrue that."

    Trump, during the 90-minute speech, also reiterated that his favorite word is "tariff" and credited his policies for bringing in "hundreds of billions of dollars," presumably for the government in tariff revenue.

    "You can give up certain products," Trump said at one point. "You could give up pencils. Because under the China policy, you know, every child can get 37 pencils. They only need one or two, you know. They don't need that many."

    Despite standing by his tariff policies, Trump has, in reality, rolled back many of his earlier tariffs, especially ones enacted on April 2.

    Tariffs are still higher than they have been in many decades, but the original 25% tariff on every import from Mexico and Canada was walked back to exclude all items covered in the USMCA trade agreement, which includes most imports from the two neighbors. Tariffs on imports from China, once more than 100%, have been reduced to a baseline tariff of 10%, which applies to all other countries.

    On top of that, in an attempt to address the price of groceries, Trump also modified and removed tariffs on a range of food products in November, such as beef, coffee, bananas, and tomatoes.

    Of the remaining tariffs, evidence points to an impact on the price of consumer goods.

    "Our analysis suggests that tariff measures are already exerting measurable upward pressure on consumer prices," according to a report published in October by the Federal Reserve of St. Louis that looked at data from January to August of this year. "The rise in prices beginning in early 2025 coincides closely with tariff developments, and our model-based regressions confirm that these effects are statistically and economically significant."

    "At the same time, the pass-through remains partial; only a portion of the model-predicted effect has materialized so far," the report added. "This could reflect delays in price adjustments, competitive pressure limiting firms' ability to raise prices, or expectations that the tariffs may prove temporary."

    Trump's speech comes as consumer sentiment remains low. According to the University of Michigan's survey of consumers, sentiment dropped to 51 points in November, which is the second-lowest score the index has ever recorded since 1952, narrowly topped by a score of 50 in June 2022.

    Earlier on Monday, in an interview with Politico, Trump said that he would give his economy a grade of "A-plus-plus-plus-plus-plus."

    Some Democrats have centered their pre-2026 midterm messaging on affordability, and several have explicitly blamed rising costs on Trump's tariff and trade policies. Zohran Mamdani, the New York City mayor-elect, with whom Trump had a meeting, also won while running primarily on making the city more affordable.

    The White House did not immediately respond to a request for comment.

    Read the original article on Business Insider

  • Macquarie says this ASX uranium stock can rocket 65% in 2026

    A woman throws her hands in the air in celebration as confetti floats down around her, standing in front of a deep yellow wall.

    Lotus Resources Ltd (ASX: LOT) shares could be a great way to gain exposure to uranium.

    That’s the view of analysts at Macquarie Group Ltd (ASX: MQG), which are bullish on the uranium developer.

    What is the broker saying?

    Macquarie notes that Lotus Resources has been battling sulfuric acid supply issues, which is slowing the ramp up of the Kayelekera operation.

    However, it was pleased to see that the company’s acid plant is making good progress and will be onstream soon. It said:

    LOT has experienced sulfuric acid supply issues from its Zambian supplier, which appears to be due to lower Zambia & Congo copper production, truck shortages and we expect also an element of demand pull from the gold sector. LOT now has a second supplier out of South Africa (10 days’ drive) to supplement its Zambia contract (5 days’ drive) which should help to stabilise its acid supply chain, however in any event LOT’s relocated Kayelekera acid plant (now relocated to better ground) has made good progress and is due to onstream in February.

    As a result of the above, Macquarie has pushed back its export expectations. It adds:

    Given the slower ramp in December quarter (acid issues) and the time still required for product accreditation (by western converters), we push back first export to the June quarter 2026 (Apr-Jun) for modelling purposes. We acknowledge LOT may be able to enter into commercial arrangements (eg. physical swaps or loans) to bring this forward but at this stage we don’t factor this in.

    Should you buy this ASX uranium stock?

    Macquarie remains positive on the uranium developer despite this little hiccup, noting that it doesn’t materially impact its investment case.

    According to the note, the broker has retained its outperform rating and 28 cents price target on Lotus Resources shares.

    Based on its current share price of 17.2 cents, this implies potential upside of almost 65% for investors over the next 12 months.

    Commenting on its outperform rating, Macquarie said:

    Outperform. Delays to first sales at Kayelekera now validates LOT’s decision to raise additional equity in September, in our view. Given the additional capital was already raised, the cut to production ramp doesn’t materially alter the investment case.

    Valuation: Our SOTP-based TP is overall unchanged. Catalysts: Uranium prices, Kayelekera offtake contracts, Kayelekera first shipment (late CY25), Letlhakane PFS (2HCY26).

    The post Macquarie says this ASX uranium stock can rocket 65% in 2026 appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Lotus Resources Limited right now?

    Before you buy Lotus Resources Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Lotus Resources Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See the 5 Stocks

    * Returns as of 18 November 2025

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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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and 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.

  • What’s going on with the Woolworths dividend?

    A hand holds up a rotten apple in an orchard.

    Income investors who bought Woolworths Group Ltd (ASX: WOW) shares for their dividend income potential in recent years might be feeling a little jaded today.

    On paper, Woolworths has everything an income investor looks for. It is a defensive stock in the consumer staples sector of the economy. It is a large, mature blue-chip share that has a clear market lead in the grocery space.

    As such, Woolworths should have a durable earnings base from which to fund stable shareholder payouts.

    Well, Woolworths’ dividends have been anything but stable in recent years. To illustrate, the company forked out an annual total of $1.08 in dividends per share over 2021. In 2022, that fell to 92 cents per share, only to come back up to $1.04 per share in 2023. 2024 continued that $1.04 per share in income, with investors also getting a 40 cents per share special dividend.

    However, rather than reflecting positive developments with the underlying Woolworths business, this dividend was funded by the sale of the company’s remaining stake in Endeavour Group Ltd (ASX: EDV).

    But today, in late 2025, shareholder patience might be running a little thin. This year saw a notable reduction in the dividend income enjoyed from Woolworths shares. The company paid out an interim dividend in April worth 39 cents per share. September saw a final dividend of 45 cents per share doled out. That puts this company’s full-year payouts for 2025 at just 84 cents per share.

    That’s the lowest annual Woolworths dividend investors have bagged since the COVID-ravaged 2020.

    So what’s going on here?

    What’s up with the 2025 Woolworths dividend?

    Well, sadly, 2025’s paltry payouts were a direct consequence of the trouble Woolworths finds itself in right now. The company has had one of the toughest years in its long history this year.

    The departure of its old CEO, Bradford Banducci, in late 2024 got things off to a bad start already. Banducci had a less-than-glorious exit involving an interview walkout.

    But Woolworths has had to deal with a series of missteps, as well as quarter after quarter showing the company losing market share to rivals. Particularly, Coles Group Ltd (ASX: COL).

    This was evident in the company’s full-year results. Back in August, Woolworths reported the lowest net profit after tax the company has brought in for at least five years. The net profit of $1.385 billion was down 17.1% from FY2024’s $1.71 billion. Group earnings also declined significantly, dropping 12.6% from $3.22 billion in FY2024 to $2.75 billion in FY2025.

    Earnings per share tanked by 17.1% to $1.135.

    The company blamed this fall in earnings and profits for its 2025 dividend cut:

    The Board declared a final dividend of 45 cents per share, bringing the total full year dividend to 84 cents per share, with the reduction on the prior year reflecting the decline in earnings per share.

    So that’s what’s up with the Woolworths dividend. A company can only pay out what it gets in. And when what it gets is falling, the dividends are often the first thing on the chopping block.

    For Woolworths to start increasing its dividends, it will first need to see its earnings and profits return to growth. No doubt shareholders will be hoping they do in 2026, but let’s see what happens.

    At the current Woolworths share price of $29.24, this ASX 200 blue chip has a trailing dividend yield of 2.87%.

    The post What’s going on with the Woolworths dividend? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Woolworths Group Limited right now?

    Before you buy Woolworths Group Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woolworths Group Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See the 5 Stocks

    * Returns as of 18 November 2025

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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.

  • Top brokers name 3 ASX shares to buy today

    A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements

    Many of Australia’s top brokers have been busy adjusting their financial models and recommendations again. This has led to the release of a number of broker notes this week.

    Three ASX shares that brokers have named as buys this week are listed below. Here’s why their analysts are feeling bullish on them right now:

    CAR Group Limited (ASX: CAR)

    According to a note out of Bell Potter, its analysts have retained their buy rating and $42.20 price target on this auto listings company’s shares. It notes that the CAR Group share price has been caught up in tech sector volatility recently, dragging it down to an attractive level. Bell Potter highlights that its shares trade at a significant discount to fellow ASX-listed classifieds platforms. Outside this, it likes the carsales.com.au owner due to its ability to generate cash flows that support growth investments and shareholder returns simultaneously. The CAR Group share price is trading at $31.89 on Wednesday afternoon.

    Coles Group Ltd (ASX: COL)

    A note out of Macquarie reveals that its analysts have retained their outperform rating and $26.10 price target on this supermarket giant’s shares. The broker has been out visiting Coles’ food manufacturing facilities. It notes that the company has the capacity to manufacture 970 tonnes of cooked products and 1.5 million meals a week. Coles has called out ready-made meals as a key growth area in the future. Speaking of growth, Macquarie believes that its supply chain investment, operational execution, and market share gains will help support an earnings per share compound annual growth rate of 10% over the next three years. The Coles share price is fetching $21.76 at the time of writing.

    Megaport Ltd (ASX: MP1)

    Another note out of Macquarie reveals that its analysts have retained their outperform rating on this network solutions company’s shares with an improved price target of $21.70. Macquarie notes that the recent acquisition of Latitude expands the immediate addressable share of customer wallet. It points out that customers already consume compute products, but Megaport has not historically sold compute. Latitude’s product offering is highly complementary to the existing product set and offers a direct position in a large and fast-growing end market. Stripe, Mercado Livre, and Grok are new customer wins. It estimates that Bare Metal as a Service (BMaaS) is a large, end market currently worth US$15 billion, but growing rapidly. Combined with the stabilisation of core revenue, Macquarie believes Megaport is well-placed for long term growth. The Megaport share price is trading at $13.62 today.

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

    Should you invest $1,000 in CAR Group Ltd right now?

    Before you buy CAR Group Ltd shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and CAR Group Ltd wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See the 5 Stocks

    * Returns as of 18 November 2025

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

  • Megaport shares tipped to jump another 60%: Here’s why

    A man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.

    Megaport Ltd (ASX: MP1) shares are 1.58% higher in lunchtime trade on Wednesday. At the time of writing, the shares are changing hands for $13.50 a piece. 

    The software-defined network (SDN) service provider’s shares are 23.8% lower than their 3.5-year peak early last month. But they’re still up an impressive 81.4% for the year to date.

    Megaport completed an institutional placement in mid-November, just a day after it revealed that it was raising $220 million to fund the acquisition of Latitude.sh for US$150 million in cash and scrip. 

    The company has suffered amid the tech-sector-wide investor sell-off, but analysts are still bullish on the outlook for the stock over the next 12 months.

    In a new note to investors, analysts at Macquarie Group Ltd (ASX: MQG) have revealed their latest expectations for the shares.

    Huge upside ahead for Megaport shares

    In its note, the broker has confirmed its outperform rating on Megaport shares. Its analysts have also hiked its 12-month target price up to $21.70, up from $18.50 previously.

    At the time of writing, this implies a huge potential 60.7% upside for investors over the next 12 months.

    Last month, Megaport said it had acquired Latitude.sh, a global Compute as a Service platform. 

    Macquarie said it has revised its EPS earnings and EBITDA number to incorporate Latitude numbers. The broker said its increased target price reflects these EPS earnings changes.

    “We revise FY26/27/28/29E EPS by n.m/n.m/+212%/+163%. The law of small numbers is at play, with EBITDA changes more meaningful at +9%/+101%/+106%/+108%. With the $200m placement now complete, our earnings changes reflect the incorporation of Latitude numbers. We assume the initial A$132m capex is spread over FY26 & FY27, with further growth reinvestment presenting downside to these numbers,” the broker said in its note.

    “Top line is stabilised, Latitude adds a new growth driver in a fast-growing end market. Reinvestment in growth will drive further top-line acceleration out of FY26. Product roadmap suggests MP1 will move more into software with edge compute, driving higher long-term margins. Retain Outperform,” the broker added.

    What else did the broker have to say?

    While customers already consume compute products, Megaport has not historically offered compute solutions. This means Latitude’s product is highly complementary to Megaport’s existing offerings and provides a direct entry into a large, fast-growing end market. Early traction is evident with new customer wins, including Stripe, Mercado Livre, and Grok. Latitude also strengthens exposure to blockchain applications.

    Macquarie also commented that Latitude CPU (central processing units) are strong. All Latitude SKUs are expected to achieve positive internal rates of return within the first one to two years, even after factoring in a 3–6 month ramp period.

    “Industry conversations confirm CPU useful lives are 6-7 years, with examples of operation beyond this time. We understand Latitude currently assumes an accounting useful life of 5 years, slightly longer than a tax useful life of 4 years. This leads to a minor tax shield on CPU capex,” the broker said.

    The post Megaport shares tipped to jump another 60%: Here’s why appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Megaport right now?

    Before you buy Megaport shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Megaport wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See the 5 Stocks

    * Returns as of 18 November 2025

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    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 positions in and has recommended Macquarie Group and Megaport. The Motley Fool Australia has positions in and 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.

  • Trading near 12-month lows, are Bapcor shares worth a look?

    A row of Rivians cars.

    Bapcor Ltd (ASX: BAP) shares have hit a 12-month low following a trading update this week which said the company’s performance had been “below expectations”.

    But Macquarie analysts believe there is still money to be made buying Bapcor shares at these levels, with their 12-month price target on the stock indicating a total return of almost 15%.

    Tough start to the year

    Bapcor said on Tuesday that its trading performance in October and November was “below expectation mainly in the trade segment”.

    The company went on to say:

    Revenue declined in tools and equipment versus the prior corresponding periods though parts revenue has grown modestly. Trade is also investing in pricing across specific parts categories to regain market share. The price reductions have adversely impacted margins in the short term but are expected to drive volume growth in the future.

    Bapcor updated its guidance for the first half to be a loss in the range of $5 million to $8 million, including about $13 million in non-recurring items.

    The company also updated its full-year guidance, saying net profit was expected to be in the range of $31 million to $36 million, and excluding the non-recurring ietms from the first half, would be in the range of $44 million to $49 million.

    Bapcor delivered a full-year net profit of $28.1 million for FY25, which was up 117% on the previous year due to lower significant items.

    Working on a turnaround

    The company’s Chief Executive Angus McKay said on Tuesday the weaker operational result for October and November was disappointing.

    Although the turnaround of the business is more challenging and taking longer than expected we are committed to doing the difficult work that will result in a stronger, more sustainable company. I am excited by the appointment of Craig Magill and Dean Austin to Key EGM roles in the trade and retail segments respectively. Craig has significant Bapcor and automotive experience and Dean brings extensive retailing and merchandising experience.

    Shares still good value

    Macquarie said in a research note sent to clients this week that the downgrade was a 17% reduction from previous expectations, and it has a neutral rating on Bapcor shares.

    That said, Macquarie still has a 12-month price target of $2.05 on the shares, and once dividends are factored in, was forecasting a total shareholder return of 14.7% for Bapcor shares.

    The updated price target was a steep 29% discount to Macquarie’s previous price target on the shares however.

    The research note also said:

    Delivering revised FY26 guidance is critical to provide confidence in the underlying earnings base and alleviate any balance sheet concerns, stabilisation of revenue, earnings and market share in the trade segment.

    Bapcor shares hit a 12-month low of $1.80 on Wednesday before recovering slightly to be 1.2% lower at $1.82.

    Bacpor was valued at $627.9 million at the close of trade on Tuesday.

    The post Trading near 12-month lows, are Bapcor shares worth a look? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Bapcor Limited right now?

    Before you buy Bapcor Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bapcor Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

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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 Macquarie Group. The Motley Fool Australia has positions in and 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.

  • Up 40% in a year, why Macquarie expects this ASX 200 dividend stock to keep outperforming in 2026

    A wad of $100 bills of Australian currency lies stashed in a bird's nest.

    S&P/ASX 200 Index (ASX: XJO) dividend stock Dalrymple Bay Infrastructure Ltd (ASX: DBI) is charging higher today.

    Shares in the infrastructure company – which owns the Dalrymple Bay Coal Terminal (DBCT) in Queensland – closed yesterday trading for $4.54. In early afternoon trade on Wednesday, shares are changing hands for $4.77 apiece, up 5.1%.

    For some context, the ASX 200 is down 0.2% at this same time.

    Today’s outperformance is nothing new for the ASX 200 dividend stock, with the Dalrymple Bay share price now up 40.3% since this time last year.

    Atop this benchmark smashing share price gain, Dalrymple Bay shares trade on a partly franked 4.9% trailing dividend yield. And the stock has added appeal for many passive income investors as it makes quarterly dividend payouts.

    And looking ahead, analysts at Macquarie Group Ltd (ASX: MQG) expect Dalrymple’s dividend yield to increase to 5.5% in 2026 and then to 6.1% in 2027. And that’s atop of further forecast share price gains.

    Here’s why.

    ASX 200 dividend stock tipped to keep on giving

    Dalrymple Bay shares closed up 1.6% yesterday after the company announced that it had successfully secured $1.07 billion of new loan facilities.

    With the new facilities reducing the company’s exposure to previously existing more expensive and less flexible debt, the ASX 200 dividend stock expects to save around $75 million in interest costs through to 2030.

    “This refinance is strongly cashflow accretive to DBI and reaching financial close on these new facilities was a key part of our capital allocation review process,” Dalrymple Bay CEO Michael Riches said.

    “DBI maintains substantial debt capacity to fund its committed NECAP [Non-Expansionary Capital Expenditure] projects, now at a significantly lower cost and this refinance creates greater flexibility and options,” he added.

    Commenting on the benefits of the new funding arrangement, Macquarie said:

    Upside from the transaction is: No longer is debt risk margins +350bps for additional borrowing. The risk premium has dropped to 150-200bps. Whilst the current debt has locked much of this, all future NECAP financing cost is materially cheaper, lifting the long-term value of DBI.

    Macquarie reiterated its outperform rating on the ASX 200 dividend stock. According to the broker:

    We think DBI is a unique investment with dividend growth of 5% and a valuation EV/EBITDA multiple of 13x, which is below comparable port multiples. Main upside event is 8X development, and medium-term repricing to capture more of the difference between NQXT [North Queensland Export Terminal] and DBCT [Dalrymple Bay Coal Terminal].

    Macquarie increased its price target for Dalrymple Bay shares to $5.33 (up from the prior $4.91), which it said reflects lower funding costs.

    That represents a potential upside of 11.7% from current levels. And it doesn’t include those upcoming dividends.

    The post Up 40% in a year, why Macquarie expects this ASX 200 dividend stock to keep outperforming in 2026 appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Dalrymple Bay Infrastructure Limited right now?

    Before you buy Dalrymple Bay Infrastructure Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Dalrymple Bay Infrastructure Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See the 5 Stocks

    * Returns as of 18 November 2025

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    Motley Fool contributor Bernd Struben 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. The Motley Fool Australia has positions in and 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.