Key Points
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The S&P 500 rose by 16% in 2025, marking its third consecutive year with gains of at least 15%.
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Despite the market’s high valuation, growth-seeking investors can still find valuable opportunities.
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Prominent growth stocks to watch for 2026 include Visa, Mastercard, Pinterest, Okta, and Meta Platforms.
The S&P 500 achieved a 16% increase in 2025, despite an initial downturn caused by tariffs. This trend signals a strong bull market, with the index now recording three consecutive years of significant growth. Historically, the market’s current high valuation raises concerns, as data indicates that such conditions often lead to downturns of 20% or more.
Investors are advised to consider growth stocks like Visa and Mastercard, which benefit from increased consumer spending and a growing international market. Additionally, Pinterest’s monthly active users reached an all-time high of 600 million, while Okta’s revenue obligations grew by 17% to $4.29 billion. Meta Platforms, with its robust cash reserves of $44.5 billion, also presents a compelling investment opportunity.
