It has been another positive year for my Stocks and Shares ISA. But 2025 will soon be in the rear-view mirror. Therefore, I’m thinking about which shares I want in my ISA at some point in 2026.
Here are two of them.
A skyrocketing stock
The first stock is Rocket Lab (NASDAQ:RKLB), which frustratingly has surged by more than 150% this year while I’ve sat on the sidelines.
This includes a 67% jump in the past month after the rocket and spacecraft maker announced its largest contract ever, worth up to $816m. This is to build a missile-defence constellation of 18 satellites for the US Space Force.
Rocket Lab also wrapped up 2025 by successfully completing a record 21 launches of its Electron rocket. The last mission deployed the QPS-SAR-15 satellite for iQPS, a Japanese Earth-imaging company.
The record cements Electron as both America’s preeminent small launch provider and the world’s most frequently-launched small-lift orbital rocket.
Rocket Lab
Looking ahead, Wall Street anticipates a doubling of revenue over the next two years, from $600m in 2025 to $1.2bn by 2027. The company is also expected to turn — or be close to turning — profitable over this period.
However, there are risks, as always. Rocket Lab has delayed the first launch of its larger reusable Neutron rocket to 2026. If this is pushed back again, or Neutron fails and needs to be redesigned, the firm’s timeline for profitability could be delayed.
The key risk I see here though is valuation. After reaching for the stars, the stock is ending 2025 at roughly 65 times sales. So there are very rosy growth expectations already baked in here.
As such, I would prefer to invest in the stock at a MUCH cheaper price. So Rocket Lab remains on my watchlist.
Tech giant
The second stock — Amazon (NASDAQ: AMZN) — needs no introduction. Whether it’s online shopping, Alexa, Kindle, Twitch, Fire TV, or Prime Video, hardly a household in the UK escapes the tech giant’s commercial tentacles.
However, despite Amazon’s continued dominance in e-commerce and cloud computing, the stock has actually underperformed the S&P 500 over the past five years. And it’s up just 6% in 2025, as I write (30 December).
I think this presents me with a potential buying opportunity, as the stock is trading near its lowest level ever on some key metrics.
In Q3, sales at its cloud computing unit (AWS) surged 20% to $33bn, the fastest pace since 2022. But as the vast majority of global IT spending moves to the cloud in future years, management sees a multi-hundred-billion dollar opportunity for AWS.
Also, Amazon is now the third-largest digital ad player globally, behind Google and Meta. This ad revenue is very profitable and also has a long runway of growth ahead.
Finally, Amazon has over 1m robots operating in its fulfilment centres worldwide. These hold out the promise of boosting efficiency and improving retail margins over time.
Admittedly, Amazon does face intense competition from Microsoft and Google in cloud computing, and the likes of TikTok Shop and Temu globally in e-commerce.
However, I suspect this high-quality stock is due a comeback, and I wouldn’t mind owning it if and when that happens. Note, Amazon is on track to generate $1trn in annual revenue before 2030.
