Video game platform Roblox is quietly leveraging technology that could finally have a much-needed impact on its bottom line.
Rocket Lab didn’t meet its self-imposed deadline, but that doesn’t change the long-term bullish thesis for the stock. It just lowers the price of the stock.
MercadoLibre has indeed been called the Amazon of Latin America, for good reason, and is likely to deliver similar returns for patient shareholders.
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Even though 2025 isn’t technically over yet, much of what’s going to happen in, for, or with stocks has already happened. After the turn of the calendar clears the proverbial slate, it’s time to start looking ahead to 2026.
With this as background, we take a closer look at three growth stocks that have underperformed recently but could start the year ahead better due to catalysts or the market recognizing that these companies are doing something right.
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Most 30% retracements Roblox(NYSE: RBLX) The company’s shares have taken a beating since peaking in September, reflecting concerns about slowing growth and declining profitability, which the company’s third-quarter numbers released in late October confirmed. While the 48% year-over-year revenue growth is numerically impressive, Roblox’s report warns that “our operating margins may decline slightly year-over-year as a result of higher DevEx rates and the impact of infrastructure and security-related investments catching up with rapid booking growth in the second half of 2025.”
For a company that not only remains in the red after years of operations but doesn’t appear to be making any real progress toward profitability, even a subtle warning is too big to ignore. However, the truth may be that Roblox’s turning point will come sooner or later. If it continues to grow as it does now and as expected, it could even happen as early as next year.
The key to this growth is what makes this video game platform unique. It’s not a video game per se. Instead, it’s a video game design platform that allows developers to build their own virtual game rooms and then monetize their creations. That’s why the platform’s user base continues to grow, and while other online games will eventually face attrition headwinds – Roblox’s products are constantly being updated by gamers themselves. Brands looking to offer consumers their own immersive virtual worlds are also leveraging this technological know-how.
To be clear, there are no cosmetic changes to how its platform works, aside from stricter age verification measures. Gamers, however, didn’t notice the changes taking place. Such is the successful implementation of artificial intelligence in and outside of games. This will slowly but surely allow Roblox to do more at a lower cost, which should become clear sometime over the next year. That’s why most analysts still maintain that the stock is a Strong Buy, with a consensus price target of $146.28, which is more than 50% higher than the stock’s current price.
Relatively young stocks (relatively small and still unprofitable) rocket lab(NASDAQ: RKLB) It’s easy to be influenced by headlines, good or bad. That’s why this stock has pulled back sharply since early last month. In early November, Orbital Launch Agency announced that the first flight of a new, larger rocket expected to be designed this year has been postponed to early next year. Disappointed investors expressed their disappointment in the form of selling shares.
The Rockets’ preparation schedule hasn’t really changed, though. Rocket Labs will still enter the so-called mid-range launch segment of the orbital launch business, which Global Market Insights believes will grow at an average annual rate of nearly 15% through 2034 as technology has made rockets and communications satellites cost-effective for more companies. The only significant change is the stock price – it now trades about 25% lower than before the decision.
That being said, know that Rocket Lab isn’t just about sending things into space. It leverages a host of technologies on and within satellites, as well as the communications solutions needed for the satellites to work and the software that manages all of them. That business accounts for about two-thirds of its current revenue, and it’s not going away regardless of when the company eventually debuts its new mid-size lift vehicles.
last added free market(NASDAQ: MELI) Add to your list of growth stocks that could soar in 2026 and beyond. this is what is calledAmazon electronic version Latin America, and for good reason.
Although the continent’s e-commerce industry is more fragmented than in North America, MercadoLibre remains the market leader. Furthermore, like Amazon, it can do this because it offers a full range of solutions, such as logistics and payment processing. In fact, its fintech arm is almost as big as its business arm.
The similarities don’t end there. Like Amazon in its infancy, MercadoLibre was in the right place at the right time. The current rapid proliferation of high-speed broadband and smartphones in South America is driving online shopping there to the same extent as here. As a result, Americas Market Intelligence researchers believe that the region’s e-commerce industry will grow 21% year-on-year this year and double in size from 2023 to 2027.
All this seemingly good news begs the question: Why has the stock fallen nearly 20% since mid-year? The answer is most The result was an unexpected increase in fees and subsequent quarterly earnings were lower than the free shipping promotion offered to Brazilian consumers during the same period. Investors just weren’t ready, and now they see it, they’re not sure they like it, even though commercial revenue grew to 38% in constant currency last quarter.
Just don’t lose sight of the bigger picture here. Amazon also spent huge sums on perks like free shipping, resulting in slim profit margins (if not recurring losses) for a long time. This short-term frustration will ultimately be worth it in the long run for patient shareholders. More investors should connect the dots for MercadoLibre for the foreseeable future.
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James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions and recommendations at Amazon, MercadoLibre, Roblox, and Rocket Lab. The Motley Fool has a disclosure policy.
3 Growth Stocks That Could Soar in 2026 and Beyond Originally published by The Motley Fool
