It has been a modest year for the S&P/ASX 200 Index (ASX: XJO) in 2025, with an approximate gain of 6%. ASX materials and defence shares have been a real winner thanks to soaring commodity prices and global defence investment. 

On the flip side, it’s been a tough year for Australian technology and healthcare shares. 

The S&P/ASX All Technology Index (ASX: XTX) has dropped almost 11% in 2025, including more than 20% since October. 

Similarly, the S&P/ASX 200 Health Care Index (ASX: XHJ) is down more than 24% since January. 

But amidst these struggling sectors have been some diamonds in the rough. 

Let’s look at some of the winners from these two sectors in 2025. 

Healthcare winners

One of the best performing ASX shares in 2025 has been 4DMedical Ltd (ASX: 4DX). 

The medical technology company works in the field of respiratory imaging and ventilation analysis in the treatment of lung and respiratory diseases.

The Motley Fool’s Aaron Teboneras reported earlier this month on the consistent run of positive results and milestones hit by the company this year. 

Regulatory approvals and new commercial partnerships have expanded its markets and validated its technology, shifting investor views from speculative potential to increasingly visible and growing software revenue.

This has launched the stock almost 680% higher in 2025. 

Despite this unbelievable run, it’s still drawing optimism for future growth.

Another healthcare stock winner this year has been Racura Oncology Ltd (ASX: RAC). 

It is an Australian clinical-stage biopharmaceutical company focused on developing cancer treatments.

It has risen almost 100% in 2025, meaning investors almost doubled their returns holding this stock through the year. 

This has been driven by promising scientific research and private placement offers.

Technology winners

Meanwhile, in the technology sector, one of the best-performing ASX shares has been Elsight Ltd (ASX: ELS). 

The company technically sits in the information technology sector, but has risen thanks to tailwinds in the defence sector. 

The company offers advanced communication components for unmanned systems (aerial, ground, and sea) through its flagship product – the Halo platform. 

Its rise has been fuelled by major contract wins, including a US$21.2M contract for CY2026. 

CY25e also marked a pivotal inflection point for the company, achieving profitability and delivering estimated revenue growth of 12x YoY (BPe). 

Its share price has risen by more than 750% this year. 

Finally, another technology stock that has enjoyed a stellar year is Energy One Ltd (ASX: EOL). 

It is a supplier of software products and services to wholesale energy, environmental, and carbon trading markets.

It reported strong growth in the 2025 financial year, reporting revenue growth of 17% to $61.4 million and annual recurring revenue (ARR) rising 22% to $60.4 million.

Its share price is up more than 150% this year. 

The post Why did these ASX shares outperform their peers in 2025? appeared first on The Motley Fool Australia.

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• Up 657% in a year, 4DMedcial shares rocketing another 20% today on big US news

Motley Fool contributor Aaron Bell 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 Energy One. 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.

Some ASX shares stand out because they operate in markets that are becoming increasingly important over time. Others earn attention because their technology addresses a problem that simply isn’t going away.

DroneShield Ltd (ASX: DRO) does both.

It operates in a niche that is becoming mission-critical, supported by technology that is difficult to replicate and growing more relevant by the year. While history shows that its share price will likely remain volatile, my focus is on the long-term opportunity this business is chasing, and one that I believe could play out over many years.

A problem that isn’t going away

Drones are no longer just toys or tools for hobbyists. They’ve become a genuine security threat across military operations, government facilities, airports, prisons, critical infrastructure, and even major public events.

That’s where DroneShield comes in.

The company develops counter-drone solutions designed to detect, track, identify, and neutralise unauthorised drones. It does this using a mix of radio frequency sensing, artificial intelligence (AI), radar, optical systems, and electronic warfare. As drone technology becomes cheaper, more capable, and more widely available, the need for effective counter-drone systems is only growing.

Importantly, this isn’t a cyclical issue. Governments and defence agencies don’t get the option to wait it out when it comes to protecting sensitive assets. Security threats don’t disappear just because economic conditions soften.

Defence spending provides powerful tailwinds

One of the key reasons I’m comfortable owning DroneShield shares is the broader environment it operates in. Global defence spending is trending higher, not lower.

Geopolitical tensions, asymmetric warfare, and the changing nature of conflict have pushed counter-drone capabilities up the priority list for many countries. There’s even talk of a drone wall across Europe’s eastern border. DroneShield already counts military and government agencies among its customers and continues to secure contracts across allied nations.

These relationships matter. Defence procurement tends to involve long sales cycles, high barriers to entry, and meaningful switching costs once systems are deployed. Over time, that creates the potential for repeat orders and more predictable revenue, even if contract announcements arrive unevenly.

A platform with room to scale

Another reason I like DroneShield is that it’s not a one-trick pony. Its technology is modular and heavily software-driven, which allows it to evolve alongside emerging drone threats.

As the installed base grows, there’s an opportunity to sell higher-margin software upgrades, updates, and ongoing support. If management executes well, I think that operating leverage could eventually help transform DroneShield from a lumpy, contract-driven business into a more consistently profitable defence technology company.

Why I’m comfortable holding through volatility

There’s no denying DroneShield shares can be volatile. Contract timing, government budgets, and market sentiment can all send the share price swinging.

But I’m comfortable with that. History shows that long-term returns are often earned by holding high-quality businesses through short-term noise. DroneShield operates in an expanding market, its technology is already proven, and its strategic relevance appears to be increasing, not fading.

Foolish Takeaway

I’m buying and holding DroneShield shares because the world is becoming more complex, not less. As long as drones remain a threat, counter-drone solutions will remain essential.

For patient investors willing to look past near-term volatility, I believe DroneShield could be a top long-term buy.

The post Why I’m buying and holding DroneShield shares forever appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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 Origin Energy Ltd (ASX: ORG) share price is in focus today after the company announced its involvement in Kraken Technologies’ first standalone capital raising, with Origin retaining a 22.7% economic interest and investing US$140 million (about $210 million).

What did Origin Energy report?

• Kraken Technologies to raise US$1 billion in first standalone equity round at a US$8.65 billion valuation
• Origin to invest US$140 million (~$210 million) as part of the raise
• Major new licensing agreement for Kraken adds over 10 million customer accounts
• Origin to receive an extra 1.5% equity in Kraken by waiving Australian exclusivity
• Following these transactions, Origin maintains a 22.7% economic interest in Kraken and Octopus Energy

What else do investors need to know?

This is the first time Kraken Technologies is raising capital as a standalone entity, supporting its formal split from Octopus Energy, which is targeted for mid-2026. The capital raise brings in a pool of new and existing investors, including D1 Capital Partners and a major new customer.

Origin’s decision to waive exclusivity rights to Kraken in Australia clears the way for other utilities to access the platform. In return, Origin increases its direct holding in Kraken, helping to offset dilution from the raise and future-proofs its position as the technology expands domestically and globally.

After all transactions, Origin will directly hold 19.6% of Kraken and a further 3.1% through its stake in Octopus Energy, keeping its overall interest steady. The deals remain subject to regulatory approval and are expected to take effect once Kraken separates from Octopus Energy.

What did Origin Energy management say?

Origin CEO Frank Calabria commented:

We have been on a path to separate Octopus Energy and Kraken Technologies, and through execution of these transactions, have now laid the foundations necessary for this to occur and enable both the businesses to pursue their growth ambitions with greater focus and financial strength.

Origin has always held a deep conviction in the potential of Kraken, and we have been able to maintain our highly valuable equity stake in Kraken, while supporting the continued expansion of Octopus Energy.

We believe these transactions put Octopus and Kraken in a strong position to unlock their next phase of growth, underpinned by the appropriate capital structure. We look forward to participating in the ongoing growth of both businesses.

What’s next for Origin Energy?

The planned separation of Kraken Technologies from Octopus Energy is expected to complete by mid-2026, giving both businesses clearer focus and flexibility to chase their own growth strategies. Origin’s ongoing stakes in both Kraken and Octopus place it well to benefit from their projected expansion, particularly as Kraken moves closer to its target of 100 million customer accounts ahead of schedule.

Origin also opens the door for new Australian utilities to use the Kraken platform, potentially growing the market and forming new domestic partnerships, while shoring up the value of its long-term investment.

Origin Energy share price snapshot

Over the past 12 months, Origin Energy shares have risen 4%, slightly trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Origin Energy retains 22.7% stake in Kraken after equity raise and Australian exclusivity waiver appeared first on The Motley Fool Australia.

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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.

Artificial intelligence (AI) has been one of the most powerful investment themes of the past decade, and its influence is only accelerating.

Yet even the strongest AI-linked businesses are not immune to market pullbacks.

One ASX stock that fits this description is NextDC Ltd (ASX: NXT).

A high-quality AI enabler at a discounted price

NextDC is not a flashy software or chip company, but it plays a critical role in the AI ecosystem. The company owns and operates a growing network of premium data centres across Australia and the Asia-Pacific.

From these centres, it provides the infrastructure that powers cloud computing, artificial intelligence, and hyperscale workloads.

Every major AI trend, from large language models to enterprise automation, relies on enormous amounts of data storage, processing power, and connectivity. That demand ultimately flows through to data centre operators like NextDC, which supply the physical backbone of the digital economy.

Despite this strong long-term positioning, this artificial intelligence ASX stock is currently trading at $12.70, which is roughly 30% below its 52-week high.

This pullback appears to reflect broader concerns about AI valuations and higher interest rates, rather than any fundamental deterioration in the company’s role within the industry.

Long-term growth story

NextDC continues to invest heavily in expanding capacity to meet future demand. This includes its recent agreement with ChatGPT’s owner, OpenAI, to look at building the largest data centre in the southern hemisphere.

This leaves it well-positioned to benefit from increasing demand for capacity in data centres from hyperscale customers, global cloud providers, and enterprise clients that require secure, high-performance infrastructure.

In fact, the artificial intelligence ASX stock has released two trading updates this month which revealed that demand has been growing rapidly. Last week, it noted that its pro forma contracted utilisation increased by 96MW or 30% to 412MW since its last update on 1 December.

The good news is that this is unlikely to be where it stops. AI workloads are far more power and data-intensive than traditional computing. That structural shift supports sustained demand growth for next-generation data centres, particularly those located in strategically important markets like Australia.

Should you invest in this artificial intelligence ASX stock?

Morgans sees significant value on offer at current levels.

Earlier this month, the broker upgraded NextDC’s shares to a buy rating with a $19.00 price target. This implies potential upside of almost 50% for investors over the next 12 months. It said:

NXT has announced that following recent customer contract wins, presumably including a large single customer contract win across multiple locations, its contracted utilisation has increased by 71MW to 316MW as at 1 December 2025. Further contract wins were, and remain in, our forecasts so this mostly underpins our expectations.

However, we upgrade our capex assumptions and lift our FY27/28 EBITDA forecasts by 5%. Our target price remains $19 per share. The share price has declined ~19% in the last three months and given a ~40% differential between the current share price and our $19 target price we upgrade our recommendation to BUY from ACCUMULATE.

Overall, this could make it worth considering NextDC shares if you are looking for exposure to the AI boom.

The post 1 no-brainer artificial intelligence ASX stock down 30% to buy on the dip in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Nextdc. 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.

Do you have room in your income portfolio for some new additions in 2026?

If you do, then it could be worth looking at the three ASX dividend stocks named below.

They have recently been tipped as buys and are forecast by brokers to pay attractive dividends in the near term.

Here’s what you need to know about them:

Coles Group Ltd (ASX: COL)

As one of Australia’s largest supermarket chains, Coles benefits from steady, recession-resistant demand that makes for dependable cashflow. Aussies always need the groceries and household essentials that fill their fridges and shelves.

This sort of consistent demand, together with strong pricing power, helps support the company’s dividends year after year.

Macquarie is feeling bullish about Coles’ outlook and expects fully franked dividends of 78 cents per share in FY 2026 and then 86 cents per share in FY 2027. Based on its current share price of $21.39, this would mean dividend yields of 3.6% and 4%, respectively.

The broker has an outperform rating and $26.10 price target on its shares.

IPH Ltd (ASX: IPH)

Another ASX dividend stock that has been given the thumbs up by analysts is IPH.

It is a global intellectual property services company that helps clients protect their patents, trademarks, and intellectual property across multiple jurisdictions through firms like Smart & Biggar and Spruson & Ferguson.

Its defensive revenue profile, strong cash conversion, and disciplined capital management have allowed the company to pay generous dividends over many years.

The good news is that Morgans expects this trend to continue. It is forecasting fully franked dividends of 37 cents per share in both FY 2026 and FY 2027. Based on the current IPH share price of $3.54, this implies massive 10% dividend yields.

Morgans also sees plenty of upside for investors. It has a buy rating and $6.05 price target on its shares.

Jumbo Interactive Ltd (ASX: JIN)

A final ASX dividend stock that income investors might want to look at is Jumbo Interactive.

It is an online lottery ticket seller and lottery platform provider behind the Oz Lotteries app and Powered by Jumbo platform.

Macquarie is feeling bullish on the company. It believes it is positioned to pay fully franked dividends of 33 cents per share in FY 2026 and then 44.5 cents per share in FY 2027. Based on its current share price of $11.30, this would mean dividend yields of 2.9% and 3.9%, respectively.

Macquarie has an outperform rating and $15.00 price target on its shares.

The post Brokers name 3 ASX dividend stocks to buy in 2026 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 positions in and has recommended Jumbo Interactive and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended IPH Ltd and Jumbo Interactive. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many investors will be taking the time this holiday season to evaluate their portfolio and its performance in 2025. 

With only a day left of trading this year, the S&P/ASX 200 Index (ASX: XJO) has risen roughly 6.4% this year. 

History tells us that’s slightly below average. 

So if your portfolio rose more than that this year, well done! 

What you might not realise is that Australia’s benchmark index has been outpaced over the last couple of years by Emerging Markets and Developing Economies (EMDE).

What are developing economies?

The World Economic Outlook divides the world into two major groups: advanced economies and emerging and developing economies.

Emerging Market and Developing Economies (EMDEs) are countries that are in the process of economic development and have lower income levels and less mature financial and institutional systems compared to advanced economies.

There are more than 150 countries that are classified in this group. 

It’s important to note this classification is not based on strict criteria, economic or otherwise. 

However in general terms, these are economies that:

• Have lower per-capita income than advanced economies
• Are undergoing structural transformation (e.g., industrialisation, urbanisation)
• Have developing financial markets and institutions
• Often experience faster economic growth but higher volatility

How have they performed?

These markets are growing both economically, and in terms of global presence. 

In fact, data shows emerging markets and developing economies (EMDEs) now account for 45% of global GDP.

This is up from 25% in 2000 according to the World Bank Group. 

There are two ASX ETFs that have performed well over the past two years on the back of this growth. 

Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE)

This ASX ETF offers exposure to companies listed on emerging markets, allowing investors to participate in the long-term growth potential typical of these economies.

At the time of writing, it is made up of more than 6,000 holdings, with its largest geographical exposure being towards: 

• China (32.6%)
• Taiwan (22.0%)
• India (19.8%)

Importantly, it has performed well over the last 3 years. 

In 2025, the fund rose 14.54%, far outpacing the ASX 200. 

Over the last 3 years, it has provided returns of approximately 13.5% per annum. 

iShares International Equity ETFs – iShares MSCI Emerging Markets ETF (ASX: IEM)

This ASX ETF offers another option to gain exposure to emerging markets. It focuses on 800 large and mid-sized companies. 

It has a similar geographic profile, with large exposure to: 

• China (27.91%)
• Taiwan (20.26%)
• India (15.33%)
• Korea, South (13.01%)

In 2025, this ASX ETF has risen more than 22%. 

Over the last three years it has provided per annum returns of 14.23%. 

Foolish takeaway 

There is absolutely ample opportunity in ASX stocks. However diversifying into international markets can also be a worthwhile strategy for investors. 

It is important to note that emerging markets can also face significant volatility due to factors like political instability, currency fluctuations, weaker regulation, and lower liquidity compared with developed markets.

The post Did these two ASX ETFs targeting developing economies beat your portfolio in 2025? appeared first on The Motley Fool Australia.

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• Did Fortescue, Rio Tinto or BHP shares perform better this year?

Motley Fool contributor Aaron Bell 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 $3,000 to invest and want exposure to some of the most powerful growth themes, exchange-traded funds (ETFs) can be a smart place to start.

They allow you to back long-term trends without having to guess which individual company will win.

With that in mind, here are three ASX ETFs that offer very different, but equally exciting, growth angles.

BetaShares Crypto Innovators ETF (ASX: CRYP)

The BetaShares Crypto Innovators ETF is not about speculating on individual cryptocurrencies. Instead, it provides exposure to the companies that are building the infrastructure and services around the crypto ecosystem.

Its holdings include businesses such as Coinbase Global (NASDAQ: COIN), Marathon Digital Holdings (NASDAQ: MARA), and Paypal (NASDAQ: PYPL). These companies benefit from increased adoption of digital assets, blockchain-based payments, and decentralised finance, regardless of which specific token ends up dominating.

What makes the BetaShares Crypto Innovators ETF interesting is that it captures the commercialisation of crypto, rather than pure price movements. As regulation matures and institutional participation grows, the businesses enabling crypto trading, custody, and infrastructure could become far more mainstream over time.

BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

The BetaShares Global Robotics and Artificial Intelligence ETF targets two of the most transformative forces of the next few decades: automation and AI.

The fund holds a global mix of companies involved in robotics, machine learning, and industrial automation. This includes Nvidia (NASDAQ: NVDA), Intuitive Surgical (NASDAQ: ISRG), and ABB Ltd (SWX: ABBN). They are at the forefront of applying AI to healthcare, manufacturing, and logistics.

Rather than focusing on consumer-facing AI hype, this ASX ETF leans into the practical deployment of intelligent systems in the real economy. As labour shortages persist and productivity becomes more valuable, demand for automation and robotics is likely to keep rising steadily. This fund was recently recommended by analysts at Betashares.

BetaShares Cloud Computing ETF (ASX: CLDD)

Finally, the BetaShares Cloud Computing ETF could be worth considering for the $3,000 investment. It offers exposure to the digital backbone of modern business. Cloud platforms underpin everything from remote work and e-commerce to artificial intelligence and data analytics.

Its portfolio includes companies such as ServiceNow (NYSE: NOW), Shopify (NASDAQ: SHOP), and Snowflake (NYSE: SNOW), all of which enable businesses to operate, scale, and innovate online.

As organisations continue migrating systems away from on-premise servers, cloud adoption remains a multi-year trend rather than a short-term cycle. It was also recently recommended by Betashares.

The post 3 exciting ASX ETFs to buy with $3,000 in 2026 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 positions in and has recommended Abb, Intuitive Surgical, Nvidia, PayPal, ServiceNow, Shopify, and Snowflake. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Coinbase Global and has recommended the following options: long January 2027 $42.50 calls on PayPal and short December 2025 $75 calls on PayPal. The Motley Fool Australia has recommended Nvidia, PayPal, ServiceNow, and Shopify. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

As the year comes to a close, I am covering the performance of many ASX ETFs in 2025. 

Last week I compared how Australia’s benchmark index has performed against the most influential US indexes. 

For a quick recap, the S&P/ASX 200 Index (ASX: XJO) rose roughly 6.4% in 2025. 

Meanwhile, the S&P 500 Index (SP: .INX) rose roughly 18%, and the NASDAQ-100 Index (NASDAQ: NDX) rose 22.2%. 

History tells us this was a slightly below average year for the ASX 200, which historically has brought returns of 9-10% per annum. 

There are a few ASX ETFs that track this index, so investors can gain exposure to this benchmark. 

However, there are plenty of ASX ETFs that outperformed the ASX 200 significantly this year. 

Let’s look at three of the best performing funds from ASX ETF provider Betashares. 

Betashares Energy Transition Metals Etf (ASX: XMET)

This ASX ETF was an absolute winner in 2025. 

It started the year trading at roughly $7.40 each, and has more than doubled to now trade at approximately $15.00. 

That’s good for a rise of 102%. 

This fund rode the tailwinds of booming commodity prices this year. 

This ASX ETF provides exposure to a portfolio of global companies in the Energy Transition Metals (‘ETMs’) industry. ETMs are raw materials that are essential to the transition to a less carbon-intensive economy.

It has holdings in global producers of copper, lithium, nickel, cobalt, graphite, manganese, silver and rare earth elements.

BetaShares Global Banks ETF – Currency Hedged (ASX: BNKS)

As the name suggests, this ASX ETF offers exposure to the largest global banks, excluding Australia. 

This includes banks such as JP Morgan Chase, Bank of America and Wells Fargo. 

At the time of writing, it is made up of 60 holdings, with its largest geographical weighting towards: 

• United States (27.7%)
• Canada (14.9%)
• Britain (10.0%)
• Japan (9.2%)

It proved a worthwhile investment this year, with the fund rising by approximately 46% in 2025.

What’s perhaps even more impressive is it boasts a track record of 19.51% returns per annum over the last 5 years. 

BetaShares Australian Small Companies Select Fund (ASX: SMLL)

Another emerging theme in 2025 has been the performance of small-cap shares.

In fact, as at December 17, small-cap shares had outperformed their large-cap counterparts by 14%. This marks the best relative outperformance in nearly 16 years.

This ASX ETF offers exposure to ASX-listed companies that are generally within the 91-350 largest by free float market capitalisation. 

In 2025, this fund has risen by more than 30%. 

The post 3 Betashares ASX ETFs that smashed the ASX 200 this year appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.

Shares of Meta Platforms (NASDAQ: META) have soared 443% over the past three years, closing at $661.50 on Dec. 22. At this share price, Meta now trades in the same range where companies such as Apple, Nvidia, and Tesla previously announced forward stock splits.

While Meta has never executed a forward stock split since going public, the company’s rising share price and growing earnings power have meaningfully increased the probability of a split in 2026.

Stock splits don’t change the value of any investor’s holdings, but here’s why a Meta stock split could prove beneficial for investors, if it were to enact one.

Upside drivers

Although stock splits do not change a company’s fundamentals, they tend to improve liquidity and broaden the investor base as they lower the per-share price (while increasing the number of shares), which can support higher trading activity and market valuation over time. While the availability of fractional shares has reduced some barriers to entry in stocks with high nominal share prices, research suggests that many retail investors still prefer owning full shares.

According to data from Bank of America‘s Research Investment Committee, companies that split their stock reported an average total return of 25.4% in the 12 months following the split announcement, more than double the 11.9% average return of the benchmark S&P 500 index in the same time frame. Hence, Meta’s stock could see an incremental upside from improved liquidity and broader participation following a stock split.

Meta reaches almost 3.5 billion people daily across its family of apps, giving it unmatched global scale and pricing power in digital advertising. Management has also guided for fiscal 2025 capital expenditures to be in the range of $66 billion to $72 billion, mainly for expanding its artificial intelligence (AI) infrastructure.

These investments are already showing results. Meta’s AI-driven ad tools are improving ad targeting efficiency and advertiser returns on ad spend. The company is also expanding its addressable market with newer ad surfaces, including on WhatsApp, Reels, and Threads.

Hence, for long-term investors, a potential stock split could serve as an accelerator on top of the company’s robust fundamentals, which can drive up its share prices in the coming months. I think Meta could be a stock-split stock that could make investors rich.

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

The post The next stock-split stock that could make you rich 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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Bank of America is an advertising partner of Motley Fool Money. Manali Pradhan, CFA 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 Apple, Meta Platforms, Nvidia, and Tesla. The Motley Fool Australia has recommended Apple, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Three of the largest ASX materials shares by market cap are Fortescue Metals Group (ASX: FMG), Rio Tinto Ltd (ASX: RIO) and BHP Group (ASX: BHP). 

In fact, BHP is the second largest company on the ASX. 

Because large materials stocks often make up a significant share of major indices, strong or weak performance in these companies can materially influence overall portfolio returns, particularly for investors with broad market or index-based exposure.

Fortunately for holders of materials stocks in 2025, it’s been a positive year.

How have materials shares performed in 2025?

The S&P/ASX 200 Materials (ASX:XMJ) index has significantly outperformed the ASX 200 this year. 

It has risen almost 31% since the start of the year. 

This has been influenced by rocketing gold and silver prices. Many mining stocks have also been, benefiting from soaring copper prices and a resilient iron ore price.

For context, the S&P/ASX 200 Index (ASX: XJO) is up a modest 6.4%. 

This was influenced by positive gains from Rio Tinto, Fortescue Metals and BHP shares. 

The best performing amongst the three has been Rio Tinto shares. 

The metals and mining company started the year trading at approximately $118 per share. 

Yesterday, Rio Tinto shares closed at more than $146 each. 

This is good for a gain of more than 24% in 2025. 

While not as profitable, it’s also been a strong year for Fortescue Metals shares which are up approximately 16% this year. 

Finally, BHP shares have also performed well, rising approximately 13.75% year to date.

Is there any more upside?

After a strong year, is it worth considering buying shares in these mining giants?

It appears fresh headwinds may be coming in the new year. 

Westpac has warned that a significant projected rise in global iron ore supply in 2026, alongside substantial cuts to Chinese steel output, could lead to a 20% drop in iron ore prices, according to The AFR.

At the time of writing, broker Bell Potter has a sell recommendation on Fortescue Metals shares. 

This is along with a price target of $19.30, which indicates a downside of more than 12% from yesterday’s closing price of $22. 

Elsewhere, analyst ratings via TradingView indicate that Rio Tinto and BHP shares are trading close to fair value. 

It lists a one year price target for BHP shares at $45.02 which is roughly 1% lower than current levels. 

The one year price target for Rio Tinto shares indicates approximately 5% downside from yesterday’s closing price. 

The post Did Fortescue, Rio Tinto or BHP shares perform better this year? appeared first on The Motley Fool Australia.

More reading

• Can the sizzling rally in ASX 200 copper stocks boost BHP shares in 2026? 
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• Record copper price shines a light on BHP shares and these two other ASX 200 mining stocks

Motley Fool contributor Aaron Bell has positions in BHP 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.