Best Stocks To Invest For 2026

The telecommunications and digital services landscape in 2026 is defined by a paradox: high interest rates and tight monetary policy coexisting with an insatiable demand for data and ecosystem integration. On December 1, 2025, Mobile TeleSystems PJSC (MOEX: MTSS)—widely referred to by its ticker and brand MTS—released a comprehensive update following its third-quarter financial results. This MTS Financial Report arrived at a critical juncture for the company as it transitions from a traditional mobile operator into a full-scale digital ecosystem. For investors tracking MTS stock, the data revealed a business model that is not merely surviving macroeconomic headwinds but actively harvesting growth from its AdTech, FinTech, and Media verticals. The following analysis deconstructs the specific drivers of this performance and the long-term implications for the MTS stock price.

The Numerical Stronghold: Deciphering the Revenue and OIBDA Surge

The most striking headline from the MTS Earnings update was the continued double-digit growth in consolidated Group revenue. For the third quarter of 2025, revenue increased by approximately 15.1% year-over-year, following a record-breaking second quarter where revenue surpassed RUB 195 billion. This sustained momentum is a direct result of two factors: the resilience of the core connectivity business and the explosive growth of “non-telecom” revenue streams. Connectivity services, the bedrock of the company, saw steady growth as data consumption per subscriber continued to rise, supported by the ongoing rollout of advanced network infrastructure.

However, the real “delta” in this report came from the Operating Income Before Depreciation and Amortization (OIBDA). Group OIBDA grew by 12.4% year-over-year, reaching approximately RUB 81.7 billion. To understand the significance of this, one must look at the margin compression faced by global peers. MTS managed to expand its OIBDA through rigorous cost optimization and the “ecosystem effect”—where the cost of customer acquisition (CAC) is shared across multiple verticals, such as MTS Bank and MTS Media. The net debt to LTM OIBDA ratio remained healthy at 1.7x, demonstrating that even in a high-rate environment, the company maintains a fortress balance sheet.

The “Ecosystem” revenue now accounts for more than 40% of the Group’s total intake, a milestone that significantly de-risks the company’s dependency on the maturing mobile market. The AdTech vertical, in particular, grew revenue by over 40% in the third quarter, leveraging Big Data to provide hyper-targeted marketing solutions for B2B partners. This shift from a “utility” model to a “technology” model is the primary reason why MTS stock has decoupled from traditional telecom valuation multiples.

FinTech and Media: The Engine of Customer Stickiness

A core pillar of the MTS Financial Report is the performance of MTS Bank. As of Q3 2025, the bank’s retail loan portfolio and commission income have reached all-time highs. The integration of banking services directly into the MTS app has created a closed-loop system where a mobile subscriber is seamlessly converted into a FinTech user. This “stickiness” is evidenced by the “Ecosystem 3.0” metric: customers using three or more services have a 40% lower churn rate than single-service users.

The Media vertical, comprising the KION streaming platform and MTS Live, also contributed significantly to the bottom line. Despite the global slowdown in streaming, KION saw a 28% increase in its subscriber base, driven by a slate of exclusive original content. For investors in MTS stock, this vertical is less about immediate profit and more about data harvesting. The insights gained from what a user watches and where they attend live events feed into the AdTech engine, creating a “flywheel” effect that fuels future revenue.

One area of concern in the report was the impact of interest expenses on net profit. GAAP net profit saw a contraction due to the servicing of floating-rate debt in a high-interest-rate climate. However, management has countered this by pivoting toward fixed-rate instruments and utilizing the strong free cash flow to pay down high-cost obligations. For those evaluating the MTS stock price, this focus on “financial discipline” over aggressive expansion is a welcome sign of maturity.

Strategic Evolution: From Hierarchy to Autonomous Verticals

Perhaps the most forward-looking aspect of the latest MTS Earnings commentary is the progress of the corporate transformation. MTS is restructuring its non-telecom businesses as separate legal entities under the “MTS Web Services” (MWS) banner. This includes MTS Digital, MTS AI, and CloudMTS. The rationale is twofold: to eliminate duplicate administrative costs and to prepare these high-growth verticals for potential independent capital raises or IPOs.

The decision to discontinue “MTS Auto” and “MTS Smart Home” initiatives was also highlighted as a key strategic pivot. By cutting experimental business lines that were not meeting margin targets, MTS is concentrating its R&D budget on high-conviction projects like Artificial Intelligence and B2B digital transformation. This “rationalization” of the portfolio is expected to save the Group approximately RUB 15 billion in annual operating expenses by 2027.

Market expansion is also taking a new form. Rather than geographic expansion, MTS is pursuing “vertical expansion”—becoming the default partner for the digital transformation of enterprise clients. The B2B segment revenue grew by 20% in Q3, fueled by a surge in demand for cybersecurity and cloud-based data sovereignty solutions. This shift positions MTS not just as a service provider, but as a critical infrastructure partner for the regional economy.

Stock Performance and the Technical Outlook

As of January 12, 2026, the MTS stock price is trading at approximately RUB 211.20 on the Moscow Exchange. The stock has shown remarkable resilience throughout 2025, outperforming the broader index by nearly 8%. Following the December 1st update, the stock experienced a “volatility squeeze,” where a dip in price was met with aggressive buying by institutional players who view the current P/E ratio as undervalued relative to the company’s tech-heavy growth profile.

From a technical standpoint, MTS stock is currently testing a long-term support level near the RUB 205 mark. The 200-day moving average is trending upward, and the MACD (Moving Average Convergence Divergence) indicator is showing a bullish divergence, suggesting that the selling pressure from the high-interest-rate fears is exhausting. If the stock can break above the RUB 225 resistance level, technical analysts see a clear path toward the RUB 250 range in the first half of 2026.

The dividend yield remains a significant “floor” for the MTS stock price. The company has historically maintained a generous payout policy, and with the ecosystem businesses now contributing to free cash flow, analysts expect the 2026 dividend payout to meet or exceed previous years. This 10%+ yield (depending on entry price) makes MTS a standout “total return” play in an era of market uncertainty.

Looking Ahead: The 2026 Growth Catalysts

The future of MTS Earnings will be defined by the company’s ability to monetize its massive data set. With a subscriber base approaching 85 million, MTS sits on the largest data lake in the region. The integration of “Agentic AI”—autonomous AI agents that can handle customer service, credit scoring, and content recommendations—is projected to improve operational efficiency by another 5% in the coming fiscal year.

Furthermore, the full-scale integration of the advertising business will be a major revenue catalyst. As domestic brands shift their marketing budgets away from global platforms toward local ecosystems, MTS’s AdTech vertical is perfectly positioned to capture this “redirected” spend. Management has confirmed they are targeting double-digit revenue growth for the full year 2026, a bold goal that would see the company’s annual revenue approach the RUB 1 trillion milestone.

In summary, the December 1st MTS Financial Report paints a picture of a company that has successfully navigated the most difficult phase of its transformation. By focusing on ecosystem synergy, financial discipline, and high-margin digital services, Mobile TeleSystems has evolved from a utility into a digital powerhouse. While external macroeconomic risks remain, the fundamental health of the business is stronger than at any point in the last decade. For investors, the question is no longer whether MTS can grow, but how high the market will re-value this emerging digital leader.

As we navigate the opening weeks of January 2026, the narrative surrounding NFLX stock has shifted from a story of disruptive growth to one of institutional hegemony. Netflix, Inc. (NASDAQ: NFLX) finds itself at the center of a seismic realignment in the global media landscape, triggered by its massive $82.7 billion strategic acquisition of Warner Bros. Discovery’s streaming and studio assets. For global investors and market participants tracking the NFLX stock price, the current environment represents the dawn of “Streaming 2.0″—an era where scale, advertising precision, and live sports rights are the new currencies of dominance.

Financial Resilience: Analyzing the Q4 2025 Performance and Margin Expansion

The financial architecture of Netflix in 2026 reflects a company that has successfully optimized its unit economics while aggressively expanding its revenue base. According to the preliminary results for the fourth quarter of 2025, Netflix is expected to report revenue of approximately $11.97 billion, representing a 16.8% year-over-year increase. This growth is a direct result of the company’s “three-tier” monetization strategy: high-margin ad-supported memberships, premium 4K subscriptions, and the continued monetization of account sharing.

A critical metric for those monitoring NFLX stock is the operating margin, which reached a record 30% in mid-2025. While the heavy integration costs associated with the Warner Bros. acquisition have caused a temporary dip in GAAP net income—estimated at $2.36 billion for Q4 2025—the company’s free cash flow remains a fortress. In the third quarter of 2025 alone, Netflix generated $6.68 billion in free cash flow, an 11% increase year-over-year. This liquidity has enabled the company to fund its content slate, which now exceeds $17 billion annually, without relying on the high-interest debt markets that hampered competitors during the early 2020s.

As of January 9, 2026, the NFLX stock price closed at $89.44. While this reflects a significant retracement from the all-time high of $133.91 achieved in June 2025 (adjusted for the recent 10-for-1 stock split), the valuation remains robust. With a market capitalization of approximately $408.67 billion and a price-to-earnings (P/E) ratio of 46.46, the market is pricing in a “consolidation premium.” The stock’s current position, trading near its 52-week low of $82.11, suggests a period of price discovery as investors weigh the long-term synergies of the Warner merger against the short-term dilution and regulatory hurdles.

Business Development: The Warner Acquisition and the “Super-Aggregator” Strategy

The most significant event for Netflix stock in recent history is the definitive agreement to acquire Warner Bros. Discovery. By incorporating HBO, DC Studios, and the deep Warner film library, Netflix has effectively ended the “streaming wars” by absorbing its most prestigious rival. This move transforms Netflix from a platform into a “Super-Aggregator,” offering a single destination for prestige dramas like House of the Dragon alongside global viral hits like Squid Game.

Strategically, the 2026 roadmap is focused on “Appointment Viewing.” The company is leveraging its newly acquired assets to build out a “Live & Sports” pillar. Following the record-breaking 27.5 million viewers for the Christmas 2025 NFL doubleheader, Netflix has secured exclusive global rights for a wider array of live events, including the full WWE archive and select Grand Slam tennis matches. This shift is designed to reduce churn—the industry’s primary profit killer—by providing reasons for users to log in daily rather than just for occasional binges.

Furthermore, the “Netflix Ads Suite” has matured into a $10 billion annual run rate business. By early 2026, the ad-supported tier reached 190 million monthly active users (MAUs). The platform now utilizes proprietary AI-driven “Pause Ads” and “Interactive Mid-rolls” that allow brands to engage with consumers in ways traditional linear TV never could. For analysts following NFLX stock, the growth of the AVOD (Advertising Video on Demand) segment provides a diversified revenue stream that is less sensitive to consumer price hikes.

Product and Technology: Gaming as a Service (GaaS) and Immersion

Beyond traditional video, Netflix’s product development in 2026 has doubled down on “Cloud Gaming.” The company has successfully transitioned from mobile-only games to a fully integrated Cloud Gaming service available on smart TVs and PCs. By leveraging its “Ontology” of user preferences, Netflix now recommends games based on a viewer’s favorite shows—for instance, an open-world DC Universe game developed by the newly integrated Warner studios is slated for a Q3 2026 release.

The technical infrastructure supporting this is “Apollo Orchestration,” a decentralized content delivery network that reduces latency for live sports and gaming. This technological moat is a key differentiator for Netflix stock, as it allows the company to maintain high-quality streams even in emerging markets with varying internet speeds. Additionally, the company is testing “Spatial Audio 2.0” and 8K streaming for its Premium tier, justifying its $24.99/month price point and driving higher Average Revenue Per Member (ARM).

Market Expansion: India, the Final Frontier, and Global Arbitrage

While the US and Canada (UCAN) markets have reached a level of maturity, Netflix’s expansion strategy is increasingly focused on “Global Content Arbitrage.” By producing high-quality content in lower-cost markets like Korea, Spain, and India, and distributing it globally, Netflix achieves a production efficiency that legacy Hollywood studios struggle to match.

India remains the “crown jewel” of the 2026 expansion plan. Following a massive investment in local language originals and a specialized “Mobile+Ad” tier, Netflix has seen a 40% growth in its Indian subscriber base over the last 12 months. The acquisition of Warner assets further strengthens this position, bringing a vast library of dubbed content that appeals to the diverse Indian demographic. In Europe, the company is navigating the Digital Markets Act (DMA) by opening up its “Netflix Ads” API to third-party DSPs like The Trade Desk, a move that has accelerated ad revenue growth in the UK and Germany.

Future Outlook: The Road to a Trillion-Dollar Media Utility

As we look toward the remainder of 2026, the trajectory of NFLX stock will be defined by three critical factors: the successful closing of the Warner merger, the scalability of the live sports ad business, and the maintenance of operating discipline. Management has guided for 2026 revenue to potentially exceed $55 billion if the integration proceeds as planned.

The NFLX stock price continues to reflect the company’s status as a “media utility.” Much like a power or water company, Netflix has become a non-discretionary expense for hundreds of millions of households. With its cash flow increasingly used for share repurchases and R&D rather than just survival, the company is positioning itself to be the first media-native trillion-dollar entity.

While risks remain—including regulatory scrutiny over the Warner deal and the rising costs of sports rights—the fundamental story of Netflix in 2026 is one of unrivaled scale. The company has moved beyond being a “streamer” to being the definitive operating system for global entertainment. For those who have followed the journey of Netflix stock from a DVD-by-mail service to a global hegemon, the current pivot represents the most ambitious chapter yet.