Ausbiz – 2026 outlook and opportunities in small-caps
I joined Juliette Saly on Ausbiz to reflect on how markets closed out in 2025 and what may lie ahead in 2026. Last year was again dominated by artificial intelligence (AI) and the Magnificent Seven (Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia and Tesla). However, with valuations now stretched amongst these technology leaders, there may be opportunities for investors beyond the headlines.
Turning to specific opportunities, I highlighted Megaport (ASX:MP1) and their recent acquisition of Latitude.sh (Compute-as-a-Service) which will support their effort to elevate and achieve their AI and machine learning goals. Given their share price has declined by 30 per cent from $17.70 to $12.40 in recent months, this could prove a good opportunity for investors.
Codan’s (ASX:CDA) share price has also retreated from $36 to $30. This decline in share price may present an opportunity given the rising gold price (up 65 per cent in the past year), their growing expertise in defense (supplying communications technology to the Australian Defense Force), and their recent positive Annual General Meeting (AGM).
I also highlighted the theme falling interest rates across global economies and what this might mean for differing economies.
You can listen to the full episode via Ausbiz here: Why David likes Megaport.
Disclaimer:
The Montgomery Small Companies Fund own shares in Codan and Megaport. This article was prepared 8 January 2026 with the information we have today, and our view may change. It does not constitute formal advice or professional investment advice. If you wish to trade these companies you should seek financial advice.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
He is also author of best-selling investment guide-book for the stock market, Value.able – how to value the best stocks and buy them for less than they are worth.
Roger appears regularly on television and radio, and in the press, including ABC radio and TV, The Australian and Ausbiz. View upcoming media appearances.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
