The key to this is its business model. But there’s a UK firm with a £6.24 share price that I can see doing something similar – and investors haven’t noticed yet.

Amazon

While AWS is often the focus for investors, Amazon’s marketplace is its largest revenue stream. It’s the biggest and the best in the industry by miles.

The trouble is, margins in this part of the business aren’t intrinsically huge. But that misses an important point. 

Amazon uses its marketplace strength to generate other high-margin revenue. Specifically, this comes from its Prime membership.

The company uses this to put its marketplace even further ahead of its rivals, which leads to more subscriptions. And so on.

This is an extremely powerful business model. And I can see a FTSE 250 company that’s looking to make a similar move.

JD Wetherspoon

I’ve been a bit lonely in having a positive view of JD Wetherspoon (LSE:JDW) shares recently. And that’s fair enough.

Investors have been concerned about the impact of cost inflation. That’s been true across the industry, but especially with the FTSE 250 firm.

A focus on customer value seems to limit its ability to offset rising costs with price increases. And management reinforced this view.

In its last update, the company stated that this year’s profits might be lower than expected. And the stock has been faltering as a result.

There’s no way around the fact that higher costs are a risk. But I see the company making a move to replicate Amazon’s business model.

Franchises

Until recently, JD Wetherspoon hasn’t had a source of revenue like Amazon’s high-margin subscriptions. But that’s changing.

The firm has started opening franchised venues run by local operators. And Wetherspoon’s provides the central admin and IT systems.

Importantly, partners also benefit from the company’s buying power. This gives them huge cost savings. 

That’s been the key to JD Wetherspoon’s lower prices. So it’s a huge advantage for these partner venues. 

Early signs are that this has been transformative for the venues, which is great. But it’s the FTSE 250 firm I’m interested in.

A game-changer?

What does JD Wetherspoon get from letting other operators use its supply chain? Three very big, very important advantages.

The first is a franchise fee (as well as a possible percentage of revenues). And this comes at virtually no cost to the company.

The second is that the firm benefits from expansion with none of those rising costs. These are left to local operators. 

The third is that it gets additional scale. And this reinforces the firm’s key strength, which is its ability to buy in bulk.

I think those are some key advantages. Especially with rising costs making things tough for hospitality companies.

A bargain buy?

JD Wetherspoon’s scale has always given it a cost advantage. But it’s starting to turn this into a source of high-margin revenues.

This could be extremely powerful. It both reinforces the firm’s key competitive strength and widens its margins in a time of higher costs.

It’s the model that’s worked for Amazon. And it’s another reason I think investors should take a closer look at £6.24.

The post How this £6.24 UK stock is copying Amazon’s winning tactics appeared first on The Motley Fool UK.

As for my largest S&P 500 holding today, it’s a Mag 7 stock. But it’s not one of the names mentioned above.

A tech powerhouse

Instead, it’s Amazon (NASDAQ: AMZN). This is the company I’m most confident in from a long-term risk/reward perspective.

What I love about Amazon is that it’s a really diversified business. Ultimately, it’s a technology conglomerate. Everyone knows that it’s a powerhouse in e-commerce. This division underpins the group, generating a huge amount of cash flow for the company every year (group operating cash flow last year was $140bn).

One competitive advantage the company has here is that it has hundreds of millions of Prime members. These customers (myself included) tend to do a lot of shopping on the platform.

Looking beyond e-commerce, Amazon’s the largest player globally in cloud computing. This division continues to generate strong growth (24% growth in Q4 2025).

Note that in the years ahead, the cloud computing industry is expected to see rapid growth due to the AI revolution. So Amazon has some powerful tailwinds here.

A major player in AI

Speaking of AI, Amazon’s a big player here. A good example is its AI chips. In its recent annual letter, the company said that if it was selling its chips to third parties, it would be generating annual revenue of around $50bn. In other words, it’s fast becoming a major competitor to Nvidia.

It’s also worth pointing out that Amazon’s a major investor in AI powerhouse Anthropic. It owns around 15%-20% of this company.

Digital advertising growth

Additionally, Amazon’s a dominant force in digital advertising. Today, it’s the third largest player behind Alphabet and Meta. In Q4, this area of the business grew 22% year on year to $21bn. So this is a whole new growth driver for the group.

Space revenues

One other area of the business worth mentioning is space. Over the last decade, Amazon’s built its own low earth orbit satellite network with more than 200 satellites.

This is scheduled to launch in mid-2026. However, already the company has meaningful revenue commitments from the likes of Delta Airlines, NASA, and Vodafone.

Many ways to win

Looking beyond all this, Amazon’s also a force in robotics (it has over a million robots operating in its factories), self-driving cars (its Zoox cars are in operation in the US today), and digital healthcare (its platform now offers weight-loss drugs).

So overall, it has many ways to win. That’s one of the reasons I see the risk/reward skew as attractive.

Another is the valuation. Today, the stock trades on a mid-20s price-to-earnings ratio. I see that multiple as very reasonable given the long-term growth potential. That’s why I’m comfortable with a large position.

Worth a look?

Of course, there are plenty of risks. One is in relation to the amount of money the company’s spending on AI ($200bn this year) – it may not pay off. Another is a consumer slowdown. This could hurt e-commerce growth.

Overall though, I’m very bullish here. I think Amazon’s worth a closer look today.

But it’s not the only S&P 500 name I like right now…

The post The largest S&P 500 holding in my ISA is… appeared first on The Motley Fool UK.

In it, CEO Andy Jassy made it clear that Amazon still has a ton of growth potential. Not only is the company seeing strong demand for its cloud computing and AI solutions but it’s also seeing high demand for its space satellite services. With that in mind, I think SpaceX isn’t the only game in town for those interested in what happens beyond the stratosphere.

The AI opportunity for Amazon

I’d advise anyone who owns Amazon stock, or is thinking about buying it, to read the annual letter, because it provided some powerful insights into the company’s roadmap.

On the AI front, Jassy explained why the company is spending $200m this year, noting that it’s not being invested on a hunch. Ultimately, the group expects to monetise this capex in 2027-2028 and is willing to endure short-term free cash flow headwinds for the substantial medium-to-long-term opportunity.

Jassy added that he’s followed the public debate on whether AI is over-hyped, whether it’s a bubble, and if margins and return on invested capital will be appealing. His views are no, no, and yes.

“AI is a once-in-a-lifetime opportunity where the current growth is unprecedented and the future growth even bigger. We’re not going to be conservative in how we play this – we’re investing to be the meaningful leader, and our future business, operating income, and FCF will be much larger because of it.”
Amazon CEO Andy Jassy

Perhaps the most interesting segment of the AI discussion was the section on chips. Jassy said this area of the business is “on fire“, and will be “much larger than most think”.

The chips business has an annual revenue run rate of over $20bn, and it’s growing in triple-digits year on year. Jassy said if chips was a standalone business with products sold to other parties, the annual run rate would be closer to $50bn.

“There’s so much demand for our chips that it’s quite possible we’ll sell racks of them to third parties in the future.”
Amazon CEO Andy Jassy

Space revenues coming

Looking beyond AI, another really interesting area of focus was space. Here, Jassy explained that the company has built a low Earth orbit satellite network (Amazon Leo) with more than 200 satellites. This makes it the third-largest low Earth orbit network in operation today behind SpaceX and Eutelsat OneWeb.

This service – which is expected to see a few thousand more satellites added in the years ahead – is officially scheduled to launch in mid-2026. However, already the company has meaningful revenue commitments from enterprises and governments such as Delta Airlines, NASA, and Vodafone.

An investment opportunity?

There’s clearly a lot to be excited about as an investor, especially as it trades on a price-to-earnings (P/E) ratio of just 25 using next year’s earnings forecast (SpaceX looks like it may trade at 130 times sales).

There are significant risks, of course. These include major competition from the other cloud computing companies, a slowdown in consumer spending that’s an ever-present issue for Amazon, and general market weakness.

Taking a five-year view though, I see huge potential. I’ve made Amazon my largest holding and I think it’s worth considering.

The post Forget SpaceX? Amazon stock offers exposure to space cheaply appeared first on The Motley Fool UK.

The space age

To understand the strategic logic, it’s important to know what Globalstar does. It’s a satellite telecommunications company that operates a Low Earth Orbit (LEO) constellation. It can therefore provide call access, high-speed data, tracking services and much more.

At the moment, SpaceX’s Starlink dominates the orbital internet service arena. It has thousands of satellites in orbit and millions of users globally. From the rumours around the purchase, it’s clear to me that Amazon wants to fast-track its LEO satellite ambitions and close the gap with Starlink. Right now, Amazon’s own network is still in its early stages of build-out.

Buying Globalstar would effectively give Amazon a shortcut. It can leverage existing satellites and infrastructure rather than building everything from scratch. Even at a potential price of $9bn, it’s a small price to pay for the big tech giant with a current market-cap of $2.2trn.

Share price potential

Things get even more interesting when you start to distil the potential benefits down to the stock. Investors like it when companies diversify operations, providing new revenue streams that are uncorrelated to the existing operations. This deal positions Amazon not just as an e-commerce or cloud giant, but as a serious player in what could become a multi-billion-dollar space internet market.

That’s the thing as we’re not talking about a niche tech experiment here. I saw a statistic that roughly three billion people globally still lack reliable internet access, and even in developed markets, there are significant coverage gaps. That’s where LEO satellite networks come in, and why SpaceX’s Starlink has already gained millions of users so quickly.

If Amazon can credibly challenge Starlink, it opens up a whole new long-term revenue stream layered on top of normal operations. Add in the fact that Globalstar has already been validated by partners like Apple (which owns a 20% stake since 2024), and I can see why it could positively impact the Amazon stock price.

Tempering enthusiasm

Of course, I need to be realistic. Firstly, the deal might not go through. As part of any negotiations, Apple would also need to be supportive of a sale, which might be tricky. Further, trying to pin down exactly how much revenue or positive impact it could have on the stock is impossible at this stage.

Despite those concerns, my gut tells me that this is a smart play from Amazon, and that the sector could be huge. On that basis, I’m thinking about adding the stock to my portfolio.

The post Why Amazon stock could soar with a rumoured new acquisition appeared first on The Motley Fool UK.

Here, I’m going to highlight two world-class stocks that are currently trading about 20% below their highs. In my view, these shares are very much worth considering for a portfolio today.

This legendary growth stock looks cheap

First up, we have a blue-chip growth stock, Amazon (NASDAQ: AMZN). It’s currently trading for around $200, down from near $250 earlier in the year.

At that price, I see a real opportunity here. Because looking at analysts’ earnings projections, the price-to-earnings (P/E) ratio is only 21 using next year’s forecast.

That strikes me as low given the long-term growth potential. This is a company that’s a global leader in e-commerce, cloud computing, artificial intelligence, robotics, self-driving cars, and space satellites, so it has a long growth runway ahead of it.

Note that the average analyst price target is $280. So, analysts seem to share my bullish view.

Personally, I don’t think the company is getting enough credit for its AI potential. Not only has Amazon developed its own AI chips but it also offers access to a broad range of AI solutions and is developing its own agentic AI software to automate functions (according to a recent report from Bloomberg).

Now, there are a few risks to be aware of. The biggest is probably a consumer spending slowdown caused by AI job losses.

This scenario might not affect Amazon as much as some other retailers as it sells a lot of cheap goods and has millions of customers locked in with Prime memberships. But it’s something to keep in mind.

Analysts see the potential for 50% gains

The other stock I want to highlight is international payments powerhouse Wise (LSE: WISE). It’s currently trading for around 915p, down from above 1,150p in September last year.

Again, I see a lot of value here. If we take the earnings forecast for the financial year starting today (1 April), the forward-looking P/E ratio is only 24.

Considering the rate at which this company is growing its revenues and earnings, that seems very reasonable to me. For the quarter ended 31 December 2025, underlying income was up 21% year on year to £424.2m, fuelled by a 26% increase in cross-border payments volume.

It’s worth noting that Wise’s earnings don’t always rise in a straight line. This company likes to continually make its services better for customers and this can temporarily impact its profitability.

This can spook short-term investors and lead to share price weakness (it’s one of the reasons the share price is down at the moment). A lot of investors get frustrated when they don’t see linear earnings growth.

I believe that this stock has all the right ingredients to be a great long-term investment, however. It’s worth noting that analysts at JP Morgan recently raised its target price to 1,385p – that’s about 50% above today’s share price.

The post 2 world-class stocks to consider buying while they’re down 20% and ‘on sale’ appeared first on The Motley Fool UK.

When they’re not watching oil prices, investors are trying to figure out artificial intelligence (AI). And Meta is an interesting case study.

Horizon Worlds

One of Meta’s recent ventures is Horizon Worlds. For those that haven’t heard of it (lucky them) it’s a sort of metaverse game.

The company announced that it was shutting the project down, before changing its mind almost immediately. But that’s not important.

The point is that Meta has lost a lot of money a lot on the metaverse since 2021. The total is around $84bn in operating income. 

The thing is, though, the stock has done really well – handily outperforming the S&P 500 since 2021. And the reason is simple.

Source: Fiscal.ai

The metaverse project has been an almost total failure. But Meta’s social media platforms have been absolutely sensational.

Since 2021, they’ve generated enough high-margin revenue to take operating profits from $46bn to $83bn. That’s why the stock is up.

I think the lesson here is that a company with terrific core assets can withstand big mistakes. And that feels very relevant in today’s stock market.

Artificial intelligence

Investors are currently wary of companies spending big on AI. There’s a real risk these won’t work. 

Two good examples are Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT). The stock market has reacted badly to their plans to keep investing through 2026.

The question is how investors should assess that risk. And I think the example of Meta is an instructive one. 

Both Amazon and Microsoft plan to spend north of $100bn in 2026. But they also have quality businesses behind them.

Amazon has AWS – its cloud computing division – and a growing advertising business. Both of these generate high-margin revenues. 

Microsoft also has a cloud business – Azure – and a huge enterprise software unit. And those are extremely impressive operations.

None of this means AI investments are going to work out for either company. But I think it means the risk might be worth it for investors.

Risk taking

Amazon and Microsoft are used to taking risks that don’t ultimately work. Both companies have tried to launch smartphones – and neither succeeded.

There are plenty more examples of unsuccessful ventures. Despite this, both stocks have been terrific investments until recently.

The proposed AI spending is on another level. But Horizon Worlds shows that more money doesn’t guarantee success.

It’s really hard to know if the latest investments are going to work. So investors can’t afford to just ignore the inherent risks.

Fortunately, I don’t think they need to. In my view, there’s a good chance both stocks do well even if the AI investments don’t.

This is why I see both stocks as buying opportunities worth considering right now. In my own portfolio, I’ve been focusing on Microsoft.

The only reason for this is that Amazon is already a big part of my portfolio. So I’m looking to add to the company I own less of.

The bottom line

Can both stocks fall further from their current levels? Absolutely – that happened to Meta in 2022. 

Will their strong operations ultimately come to the fore the way Meta’s did? My view is that this is also likely.

The post £10,000 invested in Meta Platforms Stock 5 years ago is now worth… appeared first on The Motley Fool UK.

However, the index is flat over the past six months, and some fast-growing tech stocks now look attractive. Here are two that I think are worth considering.

Investing for long-term growth

The first is Amazon (NASDAQ:AMZN), whose share price has lagged the S&P 500 over the past five years (it’s up just 36%).

However, this isn’t due to a loss of relevance or disappointing revenue growth. Far from it, as the e-commerce and cloud computing juggernaut is on track to generate $1trn in annual sales by 2028!

So, what’s the issue? It’s the other end of the income statement. Amazon has been deprioritising near-term margins to drive long-term growth. This year alone the firm is planning about $200bn in capital expenditure, including on robots, AI, and internet satellites.

The risk is that these hefty investments might not eventually pay off, while a global economic slowdown could hurt growth in its e-commerce division. Its cloud computing unit (AWS) also faces intense AI competition from Microsoft Azure and Google Cloud.

However, as CEO Andy Jassy pointed out last month: “We have deep experience understanding demand signals in the AWS business and then turning that capacity into strong return on invested capital. We’re confident this will be the case here as well.”

Taking a long-term view, I think patience will be rewarded. Ever-faster deliveries via order-picking robots and delivery drones should keep shoppers on the e-commerce app, while fending off rivals and boosting margins over time.

Meanwhile, Amazon continues to monetise its vast consumer data through high-margin digital ads (23% growth in 2025). It’s now only behind Google and Meta (Facebook and Instagram) in digital advertising.

Plus, while Amazon is prioritising growth over profits, it’s far from loss-making. And based on 2027 forecasts, the forward-looking price-to-earnings (P/E) ratio is 22. The stock has rarely ever been cheaper.

Finally, it’s worth noting that the average 12-month price target among Wall Street analysts is $280 — almost 36% above the current price. Amazon is on my buy list.

Hyper growth

The second S&P 500 share I think is worth looking at is Nvidia (NASDAQ:NVDA). I know, I know. This is already the world’s largest company, with a staggering $4.3trn market cap. How much further can Nvidia keep growing?

Well, Wall Street expects the chip firm’s revenue to grow another 71% to $369bn this fiscal year (FY27). That would actually be an acceleration from last year’s 65% top-line growth. Earnings are tipped to soar 73%.

Demand for the company’s AI infrastructure hardware and software products isn’t cooling down. And as computing demand grows exponentially with the rise of autonomous AI agents, future demand should stay strong too.

Arguably, the biggest risk is customer concentration, with a handful of firms accounting for almost half of revenue. If they lessen reliance on Nvidia, this could disproportionately hurt sales.

However, with the stock trading on a forward P/E multiple of 22, I like the risk-reward setup here. Physical AI (humanoid robots, self-driving cars, etc) is just taking off, promising to broaden Nvidia’s customer base significantly.

The $269 price target is 52% higher.

The post 2 S&P 500 tech titans to consider for a Stocks and Shares ISA  appeared first on The Motley Fool UK.

Its stock price fall of 7% so far this year partly reflects cooling investor enthusiasm for the AI narrative as the sums being spent have soared. But Amazon has a proven track record of rapid growth and smart strategic choices.

The bear case: Amazon’s overvalued

At the moment, the stock sells for 30 times earnings.

As tech shares go, that may not seem too wild. But personally I think it is a high valuation and I would rarely consider buying a share with that price-to-earnings ratio.

AI could help its online marketplace business, for example by reducing the need for manpower. We have already seen large-scale job cuts announced at the firm this year, with AI likely expected to pick up much of the slack.

But AI could weaken rather than strengthen the marketplace business, if it makes it easier for shoppers to find what they want without going through Amazon.

A firm using AI in the right way might be able to connect retailers, delivery firms and customers without the decades of investment in infrastructure that this retail giant has made.

That online retail business, anyway, increasingly looks like its past crown jewel more than its future. It remains large. But the current heavy spending on AI is not just to beef up the data centres its AWS hosting business runs, but also to develop chips.

Amazon is a growing force in the chip space. That is a costly business to be in when it comes to research and development. Given how uncertain the medium- to long-term outlook for AI chip demand remains, there is a risk that Amazon’s huge investment in this area will end up being a poor use of money.

The bull case: doubling down on success

The thing is, the company does have a lot of money to play with. In its most recent quarter alone, net income topped $21bn.

Its online retail platform is massive, giving it structural advantages like economies of scale and an increasingly powerful advertising platform. Its success helps feed further success that way – and that could keep increasing as it expands even further.

Meanwhile, the AWS and chip business is performing strongly when it comes to revenue growth. AWS sales last year grew by a fifth. The chips business is more than doubling in size annually.

While Amazon has been spending heavily on AI, that could pay back in bucketloads over the long term.

I’m tempted…

On balance, I am far more bullish than bearish about Amazon’s business prospects.

I also do not think its current valuation is crazy from a long-term perspective, even though it is higher than I normally go for.

On balance, then, I think now is a good moment to consider the shares.

The post Amazon shares: overpriced or a possible bargain? appeared first on The Motley Fool UK.

With this in mind, here are two growth stocks that I think are worth considering buying for the next five years. While each is different in size, I think both have clear paths to becoming larger companies in future.

$2.25trn giant

Let’s start with Amazon (NASDAQ:AMZN). With a colossal $2.25trn market cap, the company is no spring chicken these days. But despite its relative maturity and massive size, I can’t think of many firms pursuing more growth avenues.

For starters, it has integrated AI across its ecosystem, including agentic AI shopping assistant Rufus, which can shop tens of millions of items (including other online stores) and make purchases on behalf of customers. It helped drive nearly $12bn in incremental annualised sales last year.

Then there’s high-margin digital advertising, the fastest-growing segment, which I believe is underestimated given Amazon’s massive vault of consumer data. Ad revenue surpassed $68bn last year, with 22% growth in Q4.

Another emerging growth market is Amazon Leo, its satellite internet project which aims to compete with Starlink. The list goes on: AI chips, self-driving vehicles (Zoox), healthcare, as well as the core e-commerce and cloud computing operations. 

Amazon expects to invest about $200bn in capital expenditures this year, mainly on data centres to expand cloud capacity for AI demand. And the risk is that the company doesn’t get a good return on this huge capital outlay, especially as it’s now raising debt to fund it.

However, management isn’t doing this with its eyes closed and fingers crossed. On the Q4 earnings call, CEO Andy Jassy said: “Customers really want AWS for core and AI workloads, and we’re monetising capacity as fast as we can install it.”

Today, the stock can be picked up for 29.2 times earnings (a 10-year low).

$85bn Latin American leader

MercadoLibre (NASDAQ:MELI) has essentially taken the Amazon playbook and successfully applied it to Latin America. Already a regional leader in e-commerce, its digital ad revenue surged 67% in the fourth quarter.

The firm also has its own streaming platform (Mercado Play) and subscription service (MELI+). And like Amazon, its vast logistics network allows it to deliver parcels faster than rivals. It recently opened its first fulfilment centre in China, allowing quicker shipping to its five largest markets (Brazil, Mexico, Argentina, Chile, and Colombia).

Revenue jumped 45% to $8.76bn in the fourth quarter, as gross merchandise volume rose 36.8% to $19.9bn. With e-commerce penetration levels roughly half the level of the US, UK, and China, the company has a massive growth opportunity ahead.

But what separates MercadoLibre from Amazon is its fintech unit, Mercado Pago, which offers credit and various financial services. Here, assets under management have grown from $2bn to almost $19bn over the past three years, with monthly active users more than doubling to 78m.

The stock has fallen 35% in less than a year because the company is investing in additional free shipping and fulfilment centres. This is pressurising margins in the near term, adding some risk.

But like Amazon, I think these investments will strengthen MercadoLibre’s competitive position in the long run, allowing it to capture the sizeable growth opportunities ahead.

The post 2 excellent growth stocks to consider for a SIPP for the next 5 years appeared first on The Motley Fool UK.

The short answer is that it depends: the smart money (that is, institutional investors who are controlling huge amounts of money) says value stocks are going to outperform over the next 12 months, but the long-term picture looks quite different.

Smart money

According to the latest data from Bank of America, 43% of fund managers expect value to be the winning theme for the next 12 months. That might not sound like a lot, but it is. 

Source: Hedgefund Tips

It’s been unusual in recent years to find the smart money expressing that kind of bullish sentiment on value shares relative to growth stocks. But it’s where we are right now.

Investors might take this as their cue to start looking for value opportunities. And while I don’t think this is a bad idea at all, there are some things to be wary of. 

One is that sentiment can change in an instant – the next survey might show a very different view. The other is that, historically, value outperformance tends to be relatively short-lived.

Long-term investing

Since the start of the year, value shares have beaten their growth counterparts. But from a 30-year perspective, this barely registers on what has been a durable trend the other way.

Source: Longterm Trends

The general shape of things is that the stock market goes in cycles. Growth stocks do well until their future profits come into question, at which point value shares come to the fore.

This happened during the dotcom crash and at the end of the Covid-19 pandemic. And it looks like it’s happening again as investors try to figure out artificial intelligence (AI).

In each case, growth stocks went on to outperform. So while the market might justifiably be worried about datacentre spending, focusing exclusively on value shares is risky.

A stock I’m buying

Amazon‘s (NASDAQ:AMZN) the king of the big spenders right now. In fairness though, the $200bn it plans to spend is similar to Microsoft as a multiple of Cloud revenues.

The stakes are high, but the potential rewards are huge. Amazon’s making good progress in developing its own Trainium chips that compete favourably with Nvidia’s latest GPUs.

That could be hugely valuable in the future when AI shifts from training to inferencing. But to really fly, Amazon needs users to join AWS over the likes of Azure or Google Cloud.

Investors though, are focusing on risks, which is why the stock’s unusually cheap right now. And I’m looking to use this as a chance to add to my existing investment.

Growth and value

In my own portfolio, I don’t really look to maintain a balance between different investing styles. Instead, I try to focus on whatever the best opportunity I can find at any moment.

That’s the result of thinking about both a company’s growth prospects and the valuation multiples it’s trading at. And a lot of the time, that points me towards value shares.

The smart money’s looking at value for the next 12 months. But I think the long-term prospects for growth stocks are unusually good right now, so that’s where I’m focusing.

The post Why value shares are outperforming growth stocks in 2026 appeared first on The Motley Fool UK.