💥 Beyond All-Time Highs: 3 Growth Stocks to Own for 2026

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Hi Fellow Investors,

The stock market delivered strong gains in 2025, but forward-looking investors are already positioning for what comes next.

History shows that long-term returns are driven by earnings growth, not short-term price momentum.

Several high-quality businesses now offer compelling setups for 2026 and beyond.

Key Points:

• Amazon offers exposure to cloud computing and a potential rebound in consumer spending at a more reasonable valuation.

• Netflix’s recent pullback reflects uncertainty, but its balance sheet and content scale support long-term growth.

• Visa remains a high-margin, recession-resistant business benefiting from the global shift toward digital payments.

Amazon: Earnings Power Is Finally Taking Center Stage

Amazon (NASDAQ: AMZN) enters 2026 after a relatively muted 2025, lagging the broader market despite solid operational progress.

Soft consumer spending pressured e-commerce results and subscription services, creating near-term skepticism.

At the same time, competition in cloud computing intensified as rivals invested aggressively to gain share.

What the market may be overlooking is how fundamentally different Amazon has become over the past few years.

Amazon Web Services now generates the majority of operating income, transforming the company into a cash-flow-driven enterprise.

With earnings growth outpacing the stock’s recent performance, valuation compression has created a more attractive entry point.

Strengths

• AWS delivers outsized operating income, providing stability and margin expansion beyond retail operations.

• Amazon’s ecosystem spans e-commerce, cloud, advertising, and subscriptions, creating multiple growth engines.

• Strong free cash flow gives management flexibility to reinvest aggressively in long-term initiatives.

Weaknesses

• Consumer discretionary spending remains sensitive to macroeconomic conditions.

• Cloud competition from other hyperscalers continues to pressure pricing and growth expectations.

• Heavy reinvestment limits near-term capital returns compared to other mega-cap peers.

Potential

• A recovery in consumer demand could quickly reaccelerate retail and subscription growth.

• Continued enterprise adoption of cloud and AI services may reinforce AWS leadership.

• Expanding operating leverage could drive earnings growth faster than revenue over time.

Netflix: Short-Term Uncertainty, Long-Term Optionality

Netflix (NASDAQ: NFLX) has experienced meaningful volatility, declining sharply in recent months despite strong multiyear gains.

The market’s concern centers on rising content costs and uncertainty surrounding a major acquisition strategy.

High-profile productions have pushed operating expenses higher, compressing near-term margin expectations.

However, Netflix continues to fund growth primarily through operating cash flow rather than excessive leverage.

The company’s global scale, subscriber base, and content distribution capabilities remain unmatched.

Strategic expansion of premium offerings and diversified content channels could unlock new revenue streams.

Strengths

• A strong balance sheet supports strategic investments without relying heavily on debt.

• Global brand recognition and distribution scale provide durable competitive advantages.

• Proven ability to monetize content across subscriptions, advertising, and licensing.

Weaknesses

• Rising production costs create uncertainty around margin sustainability.

• Large acquisitions introduce execution and integration risks.

• Valuation remains elevated relative to near-term earnings visibility.

Potential

• Leveraging premium content libraries could drive higher-tier subscription growth.

• Expanded production capabilities may unlock theatrical and experiential revenue opportunities.

• Long-term global streaming demand continues to favor established platforms.

Visa: A Durable Compounder Built for Any Economic Cycle

Visa (NYSE: V) stands out as one of the most resilient growth plays in the financial sector heading into 2026.

The company benefits from a business model tied to transaction volume rather than credit risk.

Every card swipe, tap, or digital transaction generates revenue, regardless of economic conditions.

Even during slower growth periods, Visa maintains exceptionally high margins and cash generation.

Its global network scale makes it the preferred partner for banks and financial institutions worldwide.

The ongoing decline of cash usage provides a long runway for steady, compounding growth.

Strengths

• Ultra-high margins and consistent cash flow support buybacks and dividends.

• Dominant global payment network with strong competitive moats.

• Revenue model remains resilient even during economic downturns.

Weaknesses

• Growth rates are steadier rather than explosive compared to emerging fintech peers.

• Regulatory scrutiny could impact fee structures in certain markets.

• Valuation remains above the broader market average.

Potential

• Continued shift toward digital payments fuels long-term transaction growth.

• International expansion offers incremental upside beyond mature markets.

• Operating leverage may support earnings growth above GDP over time.

Conclusion

These three growth stocks combine scale, profitability, and long-term relevance across critical sectors of the economy.

Short-term volatility has created opportunities for investors focused on earnings power rather than recent price action.

Positioning ahead of 2026 may reward those willing to look beyond last year’s market performance.

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