Growth Stocks: A Cynic’s Guide (2026 & Beyond)

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Right. So, everyone’s chasing growth stocks, aren’t they? Like moths to a particularly lucrative, yet probably rigged, flame. The usual spiel is “reasonable valuation,” “strong catalyst,” blah, blah. Honestly, it feels a bit…sanitized. As if a spreadsheet can predict the whims of the market. I’ve been looking at a few, trying to ignore the nagging feeling it’s all a bit of a performance, and there are two that, well, haven’t completely offended my sensibilities. They might actually do something. Don’t expect miracles, though. Just…slightly less disappointment than usual.

1. DraftKings

DraftKings (DKNG +2.41%). Oh, DraftKings. They’re currently experiencing what I like to call ‘the humbling.’ Down roughly 37% year-to-date, 52% over the last 12 months. It’s almost… endearing. Like watching a particularly confident puppy get soaked in the rain. Everyone’s piling on, of course, because they missed some earnings estimates. The horror! But honestly, the overreaction feels a little dramatic. It’s as if missing a target automatically disqualifies them from existing.

They’ve actually gone and become profitable on a GAAP basis, which is a milestone. A real milestone, not one of those made-up Instagram milestones. Revenue surged 43%, even if it just met expectations. The bar is so low sometimes, it’s practically subterranean. And they’re diving headfirst into prediction markets, which, let’s be honest, sounds like a way to encourage more gambling. But a clever way. Their CEO, Jason Robins, is calling it a “massive incremental opportunity.” Which, translated from corporate-speak, means “we’re hoping this distracts everyone from the other stuff.” They’re investing heavily, aiming for “hundreds of millions” in revenue. Ambitious. I like ambitious. Especially when it’s paired with a healthy dose of delusion.

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The biggest drag right now is the revenue outlook. But – and this is a big ‘but’ – that outlook didn’t include revenue from these prediction markets. So, there’s a chance they’ll surprise everyone. Analysts seem to think so, with a median price target of $35 per share. That’s a 65% upside. Which, in the grand scheme of things, is…pleasant. I’m not promising yachts, but it’s a step in the right direction.

2. Booking Holdings

Booking Holdings (BKNG +2.22%). These guys are the behemoth. They own everything. Booking.com, Kayak, Priceline, OpenTable…it’s a travel monopoly, let’s be honest. And they’re doing remarkably well. A 16% increase in bookings, a 16% jump in revenue, a 34% increase in net income…it’s almost unsettling. They’re so efficient, so ruthlessly optimized…it feels a bit…soulless. But then again, so is modern travel.

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Yet, the stock is down about 25% year-to-date. Apparently, people are worried about AI disrupting the business. AI! As if a chatbot is going to replace the joy of overpaying for a slightly damp hotel room. Morgan Stanley actually raised their price target, arguing that AI will send traffic to sites like Booking. Which is a relief. It would be awkward if all these companies were suddenly obsolete. But the fear-mongering has pushed the stock to a 52-week low, and a very attractive valuation of 21 times earnings. Silver linings, I suppose.

And here’s the kicker: a stock split. A 25-for-1 split. The stock is currently trading around $4,000 per share. It’s a bit…exclusive, isn’t it? This split will bring it down to around $160-$165. More accessible. More democratic. It might even give the stock a short-term bump. It’s a bit like throwing a party just to make everyone feel included. But it works.

Ultimately, Booking is a solid long-term play. It’s dominant, efficient, and cheap. Wall Street analysts see a consensus buy with a pre-split median price target of $5,917 per share. A 53% return. Not bad. Not bad at all. Just don’t expect it to solve all your problems. No stock ever does. Trust me. I’ve tried.

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2026-02-26 10:33