Since it came to light earlier this week that the US and Iran have agreed to a two-week ceasefire, easyJet (LSE: EZJ) shares have jumped. Had an investor put £10,000 into the budget airline operator two days ago when the share price was near 360p, that capital would now be worth about £10,650 – a brilliant return in just two days.

Is it too late to get on board this airline stock? Let’s take a look.

Can the share price return to 500p?

Before the Iran war kicked off, easyJet shares were trading near 500p. We can’t just assume that the share price will return to this level if the geopolitical conflict ends though.

One major issue is oil prices. These have shot up due to the closure of the Strait of Hormuz and they could stay elevated for a while even if the conflict ends and this vital oil corridor reopens. This increase could put pressure on easyJet’s earnings, because fuel is typically one of the largest costs for airlines.

Note that last month, easyJet said that it has hedged the majority of its fuel needs for the coming months, but by the end of the summer those hedges start to come off. So if oil prices remain elevated beyond the end of summer, the company could be looking at dramatically higher costs (the price of jet fuel today is around $1,700 per metric ton versus easyJet’s hedged price of around $700) and therefore lower profits.

What about demand?

We also need to consider secondary effects of high oil prices. One that can’t be ignored is consumer spending weakness. If oil prices remain elevated, consumers are likely to have less disposable income because more of their cash will be going towards petrol, heating, and food (there’s talk of UK food prices rising 10% this year due to the Iran conflict).

This could be a major issue for easyJet because it’s a budget airline and many of its customers are lower down on the earnings spectrum (this demographic tends to be hit harder by inflation than wealthier consumers). It could be impacted more than premium airlines such as British Airways and Virgin Atlantic, which tend to serve more affluent consumers.

It’s worth pointing out that easyJet has said ticket prices will rise towards the end of the summer due to the Iran war. This could further reduce demand.

Worth the risk?

So there are some big risks to the investment case here. I think it’s unlikely that the shares will suddenly fly back to 500p. That said, I do see potential for further share price gains if the geopolitical backdrop improves significantly. If we see a major de-escalation, and a full opening of the Strait of Hormuz, I’d expect the stock to move higher.

Bottom line: people still want to travel. This is illustrated by the fact that easyJet bookings in January were the strongest ever and demand for easyJet holidays (a key growth driver for the group) was high. So the shares could definitely be worth considering as a recovery play. Investors need to be prepared for turbulence though.

The post £10,000 invested in easyJet shares 2 days ago is now worth… appeared first on The Motley Fool UK.

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Edward Sheldon has no positions in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

After a huge move higher over the last year, BP (LSE: BP.) shares have suddenly lost their momentum. Had an investor put £5,000 into the oil giant two days ago when its share price was at 600p, that capital would now be worth about £4,775.

So, is it game over for the rally here? Or is this just a temporary pullback?

Following the oil price

It’s not hard to see why BP shares have rallied recently, and why they’ve now dropped. This year, the price of oil has spiked amid the conflict in the Middle East and the shuttering of the Strait of Hormuz – a vital oil transportation route.

On several occasions, Brent Crude oil has traded near $110 per barrel, after starting the year near $60. That price level obviously translates to much higher profits for oil producers like BP.

However, since the US and Iran have agreed to a two-week ceasefire, oil has pulled back sharply, with Brent crude oil dropping as low as $91 per barrel at one point. As I write, it’s at $97.

This pullback has negative implications for BP. That’s why the share price has dipped.

The issue with oil stocks

This share price volatility highlights a major issue with oil stocks and that is that they’re unpredictable. Ultimately, they’re a little speculative because their fortunes are tied to oil prices, which can be extremely volatile.

When oil prices are rising, it’s usually great for the shares. However, if oil experiences a sudden drop, the shares are likely to suffer.

What’s next for BP?

As for where BP shares go from here, that’s hard to predict. A lot will come down to the geopolitical situation and more specifically, the situation with the Strait of Hormuz.

If we see a major de-escalation, I’d expect oil prices to fall, putting pressure on the BP share price. But I wouldn’t expect oil to go back to $60 per barrel in a flash – it could stay elevated for months or even years.

Alternatively, if things escalate, oil prices could move higher, boosting the shares. It’s worth noting that the bounce from $91 to $97 suggests that the ceasefire situation is fragile and that the Strait of Hormuz situation is complicated.

So, for investors, there’s definitely an element of speculation here. One really needs to take a view on what will happen to oil in both the short term and the long term (don’t forget decarbonisation risks).

Any value left?

Zooming in on financial metrics, BP shares currently trade on a forward-looking price-to-earnings (P/E) ratio of about 12.5, using the consensus earnings forecast for this year. However, this forecast could be way off the mark given recent fluctuations in oil prices so I don’t think this metric is very useful right now.

Perhaps a more useful indicator of value for investors is the dividend yield. This stands at about 4.5%, which is decent, but not high (and not as attractive as it has been in recent years).

Given the yield, the shares could still be worth considering. One way to look at this stock could be as a hedge against geopolitical instability.

Taking a long-term view, however, I think there are better opportunities to consider in the market. Personally, I’m focusing on other high-quality stocks that have fallen in the recent sell-off.

The post £5,000 invested in BP shares 2 days ago is now worth… appeared first on The Motley Fool UK.

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Edward Sheldon has no positions in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Diageo (LSE: DGE) shares are in a nasty downtrend at the moment. Over the last year, they’ve fallen about 30%.

What’s interesting is that over the same time frame, another UK consumer stock has soared. Perhaps this name is akin to a reverse-Diageo play?

Diageo’s main problem

From US tariffs to weight-loss drugs, Diageo is facing a lot of challenges at the moment. The greatest challenge, however, is probably just the fact that a lot of people are drinking less.

This is especially true among younger generations. These days, these generations are more focused on health, wellness, and feeling good.

I see it all the time. For example, in London, I often see big groups of youngsters out running or training together at the gym on a Saturday or Sunday morning.

This is their social activity. And there’s not a hangover in sight.

This company is benefitting

This brings me to my reverse-Diageo play. It’s British supplements powerhouse Applied Nutrition (LSE: APN).

It sells protein powders, hydration solutions, pre-workout products, and tons of other health and wellness goodies. Whereas Diageo is selling everything you need for a big night out, Applied Nutrition has everything you want if you’re looking to get fit and healthy.

So it’s very much the opposite of an alcoholic beverages company. It appears to be a consumer stock for the modern age.

Its share price is certainly moving in the opposite direction. Over the last year, it has jumped about 95%.

An investment opportunity?

Are Applied Nutrition shares worth a look today? I think so.

Underlying growth here is really strong. For the six-month period to 31 January, for example, revenue was up 57% year on year to £74.5m. Meanwhile, the valuation looks very reasonable. At present, the shares trade on a price-to-earnings (P/E) of just 19.

One other thing to like is that the share price has pulled back a little recently due to Middle East uncertainty. This has created an attractive (in my view) entry point.

Of course, there are plenty of risks. Middle East instability is one – this could increase shipping costs and/or hit demand in this area of the world.

Longer term, I think a bigger threat is a major consumer slowdown as a result of job losses. If AI continues to take jobs, more younger people may find themselves out of work and strapped for cash and this could impact demand for discretionary products.

Overall though, I like the risk/reward proposition today.

How about Diageo?

What about Diageo shares though? Are they worth considering/holding on to?

Well, I’m a long-term holder here and I’m not writing them off just yet. I’m hoping new CEO Dave Lewis can turn the company – and the stock – around.

There are plenty of moves he can make. One smart strategy could be to focus more on lower alcohol beverages to appeal to the health-focused generation mentioned above.

Note that the valuation here is super low – currently, the P/E ratio is only 11.5. In light of this valuation, I do think they are worth considering as a recovery play.

The post As Diageo shares sink, this ‘opposite’ stock in the FTSE 250 is soaring  appeared first on The Motley Fool UK.

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Edward Sheldon has positions in Diageo. The Motley Fool UK has recommended Diageo Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Across the UK today, there are several thousand ISA millionaires. These investors have taken advantage of the tax-free allowances on offer, and the power of long-term investing, to build up seven-figure portfolios.

Keen to join the ISA millionaire club? Here’s how long it might take.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

An achievable goal

Becoming an ISA millionaire is a very achievable goal. Realistically, though, it’s going to take awhile to achieve.

Exactly how long it will take will depend on a few things. The main factors are:

• How much you contribute to your ISA every year (the more you contribute the sooner you could get there)
• Your investment returns (the higher your returns the sooner you could get there)
• Your account fees (the lower your fees the sooner you could get there)

Crunching the numbers

As an example, let’s say that you contribute £10,000 per year to a Stocks and Shares ISA and you generate a return of 7% after fees (very achievable) per year over the long run. In this scenario, it would take about 30 years.

Now let’s say you contributed the full £20,000 allowance and achieved 7% per year. In this scenario, it would take about 22 years to get there.

How to aim for 7% per year

In terms of how an investor could try to achieve a 7% return per year, a solid option would be a diversified portfolio of shares and/or funds. Over the long run, shares tend to return around 7%-10% per year.

The diversification aspect (owning lots of different shares) is important here. The key to achieving high returns over the long term is minimising big portfolio losses – which diversification can help do.

Targeting higher returns

It’s worth noting that it could be possible to achieve significantly higher returns and achieve ISA millionaire status sooner. With individual shares and niche funds, returns of 12%, 15%, 20%, or even higher are possible.

One stock that I think could be capable of providing outsized returns over the next decade is Scottish Mortgage Investment Trust (LSE: SMT). This is a fund that provides exposure to a broad range of growth companies (both listed and unlisted).

Names in the portfolio today include the likes of Amazon, SpaceX, ASML, and Taiwan Semiconductor. The goal of the portfolio managers is to capitalise on big themes such as AI, healthcare innovation, and the digitalisation of finance.

This product has a great long-term performance track record. Over the 10-year period to the end of February, for example, its share price rose 426% (that equates to an annualised return of about 18%).

That said, returns haven’t been linear. There have been times where this trust’s share price has fallen significantly (eg, when interest rates rose in 2022) so investors have had to put up with a lot of volatility.

I think it’s worth considering as part of a diversified portfolio, given its exceptional track record. If it continues to perform well, it could play a role in helping an investor achieve ISA millionaire status.

The post How long might it take to become an ISA millionaire? appeared first on The Motley Fool UK.

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Edward Sheldon has positions in ASML, Amazon, and Scottish Mortgage Investment Trust. The Motley Fool UK has recommended ASML, Amazon, and Taiwan Semiconductor Manufacturing. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

S&P 500 software stocks have been hammered recently. It seems investors are worried that new AI tools from the likes of Anthropic and OpenAI are going to crush a lot of businesses.

What’s interesting is that late last month, the CEO of a well-known S&P 500 software company put his hand in his pocket and bought $10m worth of shares in his own company. This suggests that the insider believes AI fears are overblown and that his company’s stock – which is around 30% off its highs – is currently offering significant value.

A massive insider purchase

The company I’m talking about is Palo Alto Networks (NASDAQ: PANW). It’s one of the largest cybersecurity businesses in the world.

Founded in 2005, it’s led by Nikesh Arora today. He joined the business in 2018 and since then, has overseen significant top-line growth and a five-fold increase in the share price (despite a recent pullback from $220 to $160).

Now, when cybersecurity stocks plummeted in late March amid news that Anthropic is developing an extremely powerful new model called ‘Claude Mythos’, Arora stepped up to buy Palo Alto Network shares. And he didn’t just dabble – he purchased 68,085 shares for around $147 apiece in a trade worth about $10m.

This insider transaction activity is notable, in my view. Not only is Arora a top-tier insider (few people are likely to have a better understanding of the industry and Palo Alto’s growth prospects than him) but he’s backed the truck up and bought a ton of shares.

A one-stop shop for cybersecurity

Under Arora, Palo Alto is shifting to what it calls a ‘plaformisation’ model. This approach integrates a range of different cybersecurity solutions into a unified, scalable platform so that customers can obtain comprehensive protection via one provider.

So far, the company is having a lot of success with this model. Last quarter, for example, annual recurring revenue (ARR) in its ‘next generation security’ segment was up 33% year on year to $6.3bn.

Note that to enhance its offering, Palo Alto is currently buying up companies that specialise in providing protection from sophisticated AI threats. For instance, it recently announced the purchase of Koi, which helps companies depend against nefarious AI agents.

Other recent acquisitions include CyberArk and Chronosphere. Buying these kinds of companies should enhance its offering significantly.

An opportunity?

Investors should note that while this business model sounds robust, artificial intelligence is a risk. yet I’m not convinced that large-scale businesses will try to build cybersecurity solutions themselves using AI as the risks are too high.

Where AI could potentially hurt the company is the complexity of threats, however. For example, Claude’s new model could lead to higher attack complexity and higher costs to defend against them (and therefore lower profitability).

The fact that the CEO has purchased $10m worth of stock is a statement of confidence from management though. He clearly believes that the company can continue to have success in the AI era.

Given the size of the buy, I think this stock is worth a closer look. After all, insiders only buy company shares for one reason – they expect them to go up in value.

The post This S&P 500 stock is down 30% and the CEO just bought $10m worth of shares appeared first on The Motley Fool UK.

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Edward Sheldon has positions in Palo Alto Networks. The Motley Fool UK has recommended Palo Alto Networks. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

I don’t allocate a lot of capital to penny stocks. Because they tend to be risky investments.

However, occasionally I spot an opportunity that’s really tempting. And MTI Wireless Edge (LSE: MWE) is one of those opportunities.

Winning defence deals

MTI Wireless Edge is a small Israel-based company that designs and manufactures state-of-the-art antennas and related systems. It makes products for a broad range of markets but where it’s having a lot of success at the moment is on the military front.

We can see this in a trading update posted this morning (7 April). Here, it advised that it has recently won a bunch of new defence orders (all from existing customers) including:

• A $2.2m contract to supply communications infrastructure to the Israeli Ministry of Defence
• A $1.9m contract to supply military antennas to an international defence company
• A $0.5m contract for military antennas from a local defence company
• Additional orders totaling approximately $1.3m to supply components primarily to a defence company

Put all these together and we have $6m worth of contracts. Not bad for a company with a market cap of just over £50m.

The market is clearly impressed – the company’s share price is up about 8% as I write. That takes the stock’s year-to-date gain to around 33% – miles ahead of the returns from some bigger defence stocks such as Rolls-Royce Holdings (3%) and Rheinmetall (0%).

An investment opportunity?

Is this penny stock worth a look today? I think so – it appears to offer a winning combination of growth, value, momentum, and income.

We can see the growth in the deals above. These should boost the company’s top line.

“The volume of orders significantly enhances our order book for FY2026 and FY2027 and supports our ability to continue to grow our business.”
MTI Wireless Edge CEO Moni Borovitz

As for value, the forward-looking price-to-earnings (P/E) ratio is only about 14. That earnings multiple suggests to me that this stock is flying under the radar of a lot of investors.

Turning to momentum, the share price is in a strong upward trend. And ‘the trend is your friend’ as they say.

We also have income. For 2025, this company paid out 3.4 cents in dividends per share – that translates to a dividend yield of about 4.2% today.

Of course, we need to remember that this is a penny stock. And that means that there are plenty of risks. It’s also in a sector in which many investors wouldn’t want to invest.

On the operational front, risks include deals drying up and revenue growth stalling and higher supply chain costs eating into profits. Meanwhile, on the trading/investment front, a risk is a lack of liquidity (not being able to sell the shares at a good price).

Overall though, I like the risk/reward set-up at the current share price valuation and valuation. I believe this stock is worthy of further research.

The post MTI Wireless Edge: the 61p defence penny stock that’s delivered 10x the return of Rolls-Royce shares in 2026 appeared first on The Motley Fool UK.

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Edward Sheldon has no positions in any shares mentioned. The Motley Fool UK has recommended M.t.i Wireless Edge and Rolls-Royce Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

ISA millionaires love dividend shares. That’s a clear takeaway from research on these elite investors from Hargreaves Lansdown and AJ Bell.

Interested to know which dividend shares they like in particular? Here’s a look at the top individual stock holdings of AJ Bell’s ISA millionaires.

Millionaires like blue-chip dividend stocks

Back in February, the broker published a list of the most owned investments among this cohort of investors on its platform. Not only did it highlight their favourite stocks, but it also listed their favourite investment trusts, funds, and ETFs (these people tend to take a diversified approach to investing).

On the stock side, the five most popular shares were:

• Shell
• GSK
• Legal & General
• National Grid (LSE: NG.)
• Aviva

These are all ‘blue-chip’ FTSE 100 companies with healthy dividend yields (ranging from 3%–9%). So, these investors seem to prioritise stability and income.

I should point out though that these aren’t necessarily the best shares to consider buying if someone is aiming to become an ISA millionaire. Most existing millionaires are older investors (many are in their 70s) and an approach focused on stability and income is going to match their goals and risk tolerance.

Someone younger targeting a million-pound ISA could be better off focusing on stocks with more growth potential. This approach could enable them to achieve their goals faster.

Another thing to point out is that the millionaires may have bought these shares for their ISAs 20 or 30 years ago. A lot has changed since then and there could be better opportunities for those investing for the next 10, 20, or 30 years.

A stock for the next 10 years?

Zooming in on the five names though, the one that looks most interesting to me today, from a long-term perspective, is utility powerhouse National Grid. I see it as the most resilient to change and technological disruption (the insurers could face some challenges here).

As the world becomes more digital in the years ahead, demand for electricity is likely to rise significantly (due to the huge power demands of data centres and AI). This is where National Grid comes in – it’s essentially the ‘landlord’ of the infrastructure that makes these technologies possible in the UK (and some parts of the US), pocketing a return on the electricity that flows through its network.

It’s worth noting that the company is spending heavily right now to build out and enhance its network infrastructure for the AI era – between now and FY2031 it plans to spend about £70bn. This kind of spending is a risk as it could hurt profitability.

However, the group believes that it will still be able to achieve underlying earnings per share growth of 8%–10% per year in the medium term (13%–15% this financial year). It’s also planning to grow its dividend payout (where the yield is about 3.6% currently) in line with UK inflation.

So overall, there’s a lot to like, in my view. Trading on a forward-looking price-to-earnings (P/E) ratio of 15, I think it’s worth a closer look today.

The post 5 dividend shares that ISA millionaires love appeared first on The Motley Fool UK.

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Edward Sheldon has no positions in any shares mentioned. The Motley Fool UK has recommended GSK and National Grid Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Tesla (NASDAQ: TSLA) is very much a momentum stock. When it’s hot it’s hot, but when it loses its mojo, it can be a bit of a car crash.

Right now, it’s fair to say that the growth stock is struggling. Here’s a look at how much £5,000 invested in Tesla on Christmas eve would be worth now.

Fast losses

On 24 December, Tesla’s share price ended the day at $485 (within a few percentage points of its all-time high). So, let’s say that an investor bought £5,000 worth of stock at that price (perhaps they got caught up in the hype as the stock raced higher).

Today, that money would now be worth about £4,100 as the share price has fallen significantly. Note that I’m factoring in GBP/USD exchange rates here – they’ve offset some of the losses.

What’s happened?

What’s gone wrong here for investors? A few things.

For a start, market conditions have changed dramatically. Back in late 2025, the market was flying and investors were very bullish on tech stocks. Today however, the market is under pressure due to geopolitical and economic uncertainty. Sentiment towards tech stocks (especially ones with high valuations like Tesla) has also cooled.

It’s worth pointing out that economic uncertainty is an issue for Tesla. Because if the economy takes a turn for the worse, it will almost certainly lead to a slowdown in car sales. During recessions, consumers tend to hold back on big purchases. So, Tesla’s electric vehicle (EV) sales are potentially at risk.

Another issue for the company is high oil prices. This is a problem for several reasons. First, car manufacturing is an energy-intensive process. Second, a lot of car components (dashboards, seat trims, tyres, etc) are petroleum based. Put these two factors together and the company could potentially be looking at much higher costs in the near term (and therefore lower profits).

Additionally, competitive pressures are rising. Today, there are lots of alternatives to a Tesla EV and companies like BYD and Volkswagen are capturing market share.

Finally, company results have been weak. For the fourth quarter of 2025, revenue was down 3% year on year (automotive revenue was down 11%) while non-GAAP earnings per share was down 17%.

Worth a look today?

Is the stock worth a look while it’s well off its highs? Well, it could be – history shows that it has recovered from pullbacks in the past (many times).

Note that the company still has plenty of long-term growth potential. Today, Tesla is not just an EV story. The narrative is about self-driving cars, humanoid robots, energy storage, and AI infrastructure.

Personally though, I won’t be buying. For me, the valuation is still too high – the forward-looking price-to-earnings (P/E) ratio is about 190 right now.

I could be interested in buying the stock at a later date. However, I want the P/E ratio to be well under 100.

The post £5,000 invested in Tesla stock on Christmas Eve is now worth… appeared first on The Motley Fool UK.

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Edward Sheldon has no positions in any shares mentioned. The Motley Fool UK has recommended Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Lloyds‘ (LSE:LLOY) shares have lost their momentum. Since hitting 115p in early February, they’ve fallen as low as 88p. Now, while they could rebound to £1.15 in 2026, I wouldn’t rule out a move lower.

Here’s a look at how they could potentially fall back to 70p.

High oil prices could hurt the banks

The way I see it, there are three main risks for Lloyds right now. The first is a prolonged period of high oil prices. This would almost certainly be bad for the banks, because high oil prices tend to hurt consumers and businesses and lead to a slowdown in economic growth.

For banks, a slowdown in economic growth tends to translate to lower demand for loans and/or high loan defaults. This, in turn, translates to lower profits.

It’s worth noting that a sharp increase in oil prices (like we’ve just seen) tends to be more damaging to consumers than a slow rise. A sharp spike can really mess with people’s finances (eg sudden petrol cost spikes) and impact their ability to service loans.

A new source of competition

The next risk is competition from digital bank Revolut. No one’s really talking about this right now, but I don’t think we can ignore it. Revolut now has a full UK banking licence. This means that it can compete with Lloyds in areas such as savings accounts and loans.

I expect it to capture market share from the traditional banks in the years ahead. Because it has a really compelling offering.

For example, pay £14.99 a month for its Metal card and you get travel insurance, Uber One membership, access to Perplexity Pro, a Financial Times digital subscription, Class Pass vouchers, WeWork credits, NordVPN access, and more. I don’t see Lloyds offering great deals like this.

It’s worth noting that Revolut is having success both at consumer and business level right now. At the end of 2025, it had 68.3m retail customers (+57% year on year) and 767,000 business customers (+33%).

The AI risk

Finally, we have the artificial intelligence (AI) threat. If companies continue to lay off white collar employees, there’s a genuine chance we could see a spike in loan defaults. This is another risk that can’t be ignored. Businesses that have announced layoffs this year include HSBC, Block, Oracle, and Klarna.

The bull case for Lloyds

Now, of course, these risks and scenarios may not come to fruition. We could see oil prices drop, Lloyds fend off Revolut, and laid off employees move into new roles created by AI.

We could also see Lloyds use AI to its advantage and cut its costs significantly. In banking, AI can be used for identity verification, account opening, customer service, regulation scanning, and much more.

If things played out like this, we could see Lloyds shares hit £1.15 again. They could even keep rising beyond this level.

I’m just not super-confident the shares will return to £1.15 in 2026 though. They could still be worth considering below £1. However, in my view, there are better shares to consider buying today.

The post Lloyds shares: is £1.15 or 70p next? appeared first on The Motley Fool UK.

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Edward Sheldon has positions in Uber. The Motley Fool UK has recommended Block, HSBC Holdings, Uber, Lloyds Banking Group Plc, and Oracle. HSBC Holdings is an advertising partner of Motley Fool Money. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

After years of high-octane gains, Nvidia (NASDAQ: NVDA) stock seems to have run out of gas. Had an investor put £5,000 into the chip stock six months ago, that capital would now be worth about £4,800 (factoring in exchange rates).

Is it game-over for this legendary growth stock? Or is it just pausing for breath before its next leg higher?

Taking a breather

My view here is that it’s simply taking a breather. Between the start of 2023 and October 2025, the stock jumped from $20 to $200. At some stage, it was likely to experience a lengthy period of ‘consolidation’. I think that’s what we’re seeing now.

Get ready for the next move higher

I fully expect it to continue its ascent at some stage in the near future. Because the underlying fundamentals look very strong.

At last month’s GTC conference, for example, CEO Jensen Huang unveiled a bunch of powerful new products including the Vera Rubin AI platform (which is far more powerful than its current Blackwell platform), the Groq 3 inference chip, and a software platform for OpenClaw. He also announced the launch of a few partnerships for self-driving cars (which will use Nvidia’s self-driving tech).

Meanwhile, Huang said he now expects a whopping $1trn in revenue from Blackwell and Rubin chips through 2027. Late last year, the company was only expecting $500bn.

So it’s not like the growth story here has come to an end. If anything, growth appears to be accelerating.

Undervalued today

Note that after the recent dip in the share price, the stock’s starting to look very cheap. With analysts expecting earnings per share of $8.26 this financial year (versus $4.92 last financial year), the forward-looking price-to-earnings (P/E) ratio’s only 21 (near a seven-year low).

At that earnings multiple, the stock’s undervalued, in my view. It seems Wall Street analysts share my view here – currently the average price target is about 50% higher at $264.

Worth a closer look

Ill point out that in the current market environment (where investor sentiment’s weak due to economic and geopolitical uncertainty), the growth stock isn’t suddenly going to surge to $264. For the Nvidia share price to resume its long-term upward trend, we’ll need to see market conditions improve.

And of course, there’s no guarantee it will actually get to that price target. If spending on AI infrastructure from hyperscalers such as Microsoft and Amazon drops, or competitors (including the hyperscalers) launch powerful new AI chips, the growth story here could potentially be derailed.

Taking a long-term view however, I’m bullish on Nvidia as I expect the AI buildout to continue. I think it’s worth a closer look today while it’s around 15% below its highs.

The post £5,000 invested in Nvidia stock 6 months ago is now worth… appeared first on The Motley Fool UK.

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Edward Sheldon has positions in Nvidia, Amazon, and Microsoft. The Motley Fool UK has recommended Nvidia, Amazon, and Microsoft. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.