Key Highlights
Looking ahead to December 2024, a new list has emerged featuring the top 10 stocks for 2025. This selection, presented in no particular order, shows that most of these stocks performed well, with only three companies lagging behind the market. It raises a question: will these three underperformers still be on the market in 2026?
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Overview of Underperformance
A closer look at the 10 stocks against the broader market reveals a notable struggle from PayPal.
TSM based on data from Y chart
The S&P 500 had a strong year, growing by 16.4%. However, Meta, Amazon, and PayPal all fell short of expectations. Various factors contributed to this underwhelming performance.
Meta performed well until it announced a dip in projected revenue following its third-quarter results. This prompted investors to sell, particularly with regards to data center investments planned for 2026.
Amazon struggled for a good part of the year primarily due to its inflated value heading into 2025. Now that this premium is gone, it finds itself on par with other major tech companies. Given its recent strong performance, Amazon might see significant growth in 2026.
Then there’s PayPal, which is currently undergoing a restructuring phase and has not seen much in terms of growth. Still, with a stock price under 10 times its projected future earnings, it might be considered a bargain, especially in the global payments sector.
So, which of these three companies could one consider investing in for 2026?
Potential Recovery for All Three
I believe all three companies could outperform the market in 2026. If Meta capitalizes on its data center investments, it could deliver considerable returns. If Amazon maintains its current financial strength through the end of 2025, its performance should rebound.
As for PayPal, there’s a significant challenge ahead; it really needs a favorable shift in market perception to thrive. However, if it continues stock buybacks and achieves growth targets—especially in Diluted EPS–it seems plausible that a turnaround could happen.
These three are indeed solid candidates for 2026, but investing in them isn’t without risks.
Thinking About Buying Meta Stock?
Before diving into a purchase of Meta stock, here are a few considerations:
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