Key Facts
In December 2024, a selection of ten stocks was identified for investment in 2025, which saw only three underperforming compared to the S&P 500, which rose by 16.4%. The stocks that lagged were Meta Platforms, Amazon, and PayPal. Despite their struggles, analysts suggest they may be positioned for recovery in 2026, with particular focus on PayPal’s potential turnaround.
Meta’s stock fell after announcing increased capital expenditures for data centers, while Amazon’s trading premium dissipated, leading to its underperformance. PayPal, trading at under 10 times forward earnings, is viewed as a potentially undervalued investment if it can improve its market perception and financial metrics.
Analysts express moderate optimism for these stocks in 2026: Meta’s investments could yield significant returns, Amazon may leverage its recent financial strength, and PayPal could benefit from share repurchases and earnings growth. Detailed assessments of these companies suggest they are worth considering for investors in the upcoming year.
