Our Stock Market Naughty and Nice List - motley-fool-money Recap

Podcast: motley-fool-money

Published: 2025-12-24

Duration: 16 minutes

Guests: Lou Whiteman, Rachel Warren

Summary

The podcast reviews the standout performers and underperformers in the stock market for 2025, highlighting both companies and executives. It also discusses potential investment opportunities for 2026.

What Happened

Alphabet emerged as a top performer in 2025, defying expectations that AI competitors would erode its search business. The company's stock soared by nearly 70%, positioning it as a leading name in autonomous technology and streaming services. NVIDIA also had a strong year, maintaining its value status and meeting investor expectations without any major surprises.

Rocket Lab's CEO, Sir Peter Beck, is praised for his engineer's mindset and commitment to long-term company goals, leading to a doubling of Rocket Lab's stock price in 2025. Mercado Libre is highlighted for its impressive growth in Latin America, driven by its expansion in e-commerce and fintech sectors.

In the retail sector, TJX Companies stood out with its resilient business model that thrives in various economic conditions, while Klarna gained significant market share in the buy now, pay later industry, especially after going public in the US.

On the naughty list, antitrust regulators faced criticism for their decisions, which led to negative outcomes for companies like Spirit Airlines and iRobot. Fiserv's struggles with its Clover terminal and The Trade Desk's significant stock value loss also placed them on the naughty list.

Consumer goods companies like Target and Starbucks faced challenges due to high inflation and changing consumer behaviors, resulting in significant stock declines. Target's reliance on discretionary sales and Starbucks' high-priced offerings contributed to their underperformance.

Looking ahead to 2026, the hosts expressed interest in healthcare stocks such as Eli Lilly and Pfizer, as well as undervalued retailers like Walmart, Costco, and Lululemon. Alphabet was also seen as a compelling buy for the new year.

The episode concludes with a discussion on potential opportunities in financials, REITs, and sectors like space and automation, which might offer big wins despite the risks associated with smaller, riskier stocks.

Key Insights