However, the UKs home to some cracking, lesser-known growth companies. Here are two I think deserve a closer look today.

Wise

Let’s start with the largest, Wise (LSE:WISE). The international money transfer specialist has a £10.8bn market-cap, but rather than try join the FTSE 100, it’s moving its primary listing to the US.

However, it will keep a secondary listing in London, where each share currently costs 1,050p. This puts the stock on a forward price-to-earnings (P/E) ratio of 26.5.

I don’t think that’s outrageous for a company that did the following last year:

• Grew underlying income 19% on a constant currency basis to £1,619m.
• Increased cross-border volume 25% to £181.7bn.
• Grew customers 21% to 18.9m.
• Guided for pre-tax profit margin to be towards 16%.

Looking ahead, the growth engine still seems very strong to me. As well as people, more businesses are signing up to use Wise, whose infrastructure makes cross-border transactions cheaper and faster. Some 75% of transfers are now instant.

Plus, Wise is lowering the take rate as it scales. While some investors might not like this because it’s sacrificing short-term profitability, it should place Wise in a much stronger competitive position over the long run.

And as a long-term investor, that’s what I’m interested in.

However, in the near term, the situation in the Middle East represents a risk to growth. If soaring inflation and energy costs tip the global economy into a downturn, then it’s possible less people and businesses will move money around.

Despite this risk, I’m happy to have Wise as a top-10 position in my portfolio. The stock’s up 21.5% year to date, but I still think it’s worth considering anywhere near £10.

Boku

Turning to Boku (LSE:BOKU) now, this is a much smaller company, with a £525m market-cap. Despite its modest size, Boku works with the world’s largest merchants, helping them drive sales in more than 60 countries through local payment methods (LPMs).

For example, let’s say someone in Thailand wants to subscribe to Netflix. They select their digital wallet as the payment method, and Boku provides the backend piping that connects Netflix with that specific local wallet. Its network now reaches 200+ LPMs, and is growing every year.

Last year, revenue jumped 30% to £129m, up from £62m in 2021. By 2028, analysts expect that to reach more than £210m, with LPMs expected to account for 60% of the $11trn global e-commerce market.

However, Boku isn’t a loss-making fintech. Its profits are growing alongside strong top-line expansion, and management’s confident margins will improve in future years.

The good news is that this earnings growth doesn’t look priced in, with the stock trading at just 18 times next year’s forecast earnings. That’s cheap for a scalable platform that expects to continue growing at 20% over the medium term.

Again, a global economic downturn is a risk, as is competition in the payments space. But I reckon this under-the-radar stock’s worth considering buying for the next five years.

The post 2 top growth shares to consider on the London Stock Exchange appeared first on The Twelfth Magpie.

But what if a saver had instead put 10 grand into the stock market a decade ago? What sort of return would they have now? Let’s find out.

Chalk and cheese

According to The Investment Association (IA), a £10,000 sum put inside a Cash ISA a decade would now be worth roughly £8,400 in real terms. This is due to inflation, which erodes purchasing power, as I’m sure we’re all aware today.

However, 10 grand invested in a global index fund a decade ago would today be worth about £19,700 in real terms. So basically a doubling.

While there’s no guarantee this return will be replicated moving forward, it shows how the stock market significantly outperforms cash over the long run. And that’s information worth taking seriously, especially when UK inflation remains frustratingly stubborn.

Active investing

A global tracker fund is essentially a giant bucket that holds a small slice of nearly every major listed company in the world. But for investors willing to take on more risk, buying individual shares can be even more lucrative.

Consider the five-year price returns of these popular UK stocks:

• Rolls-Royce: +1,009%
• Shell: +156%
• Lloyds: +128%
• Tesco: +121%
• BAE Systems: +312%

Note, these returns don’t include dividends!

As mentioned, stock picking is riskier because unexpected things can go wrong at companies. For example, an accounting error at WH Smith last summer sent its share price crashing 42% in one day!

To offset this risk, it’s important not to go all-in on a small number of shares. Diversification is a cornerstone of portfolio construction.

Wise

Which UK stock do I think could produce strong returns over the next decade? Wise (LSE:WISE) is one that I own in my SIPP and Stocks and Shares ISA.

The company helps people and businesses transfer money internationally, both quickly and cheaply. Back in the day, this tended to cost an arm and a leg due to the myriad hidden bank charges and mark-ups.

In the 12 months to the end of March, Wise’s cross-border volume increased 25% to £181.7bn. Active customers grew 21% to 18.9m, while business customers grew 26% to 572,000. On a constant currency basis, underlying income grew 19% to £1,619m.

Co-founder and CEO Kristo Käärmann commented: “More and more people are using Wise at home or abroad for their everyday spending, for paying bills, for savings and investments. That’s why last month we formally launched our UK current account with a physical branch concept on Oxford Street in London.”

I’ve just got back from a trip to Poland, where I used my Wise account to pay for everything. However, it’s transferring money for large financial institutions where the big opportunity lies.

And it has partnered with some heavy hitters, including Standard Chartered and Itaú Unibanco (the largest bank in Latin America). This is how Wise plans to eventually move trillions.

The biggest risk to cross-border volume growth is a global recession caused by the inflationary war in Iran.

However, looking ahead, I reckon Wise will become a much larger company as its infrastructure becomes the plumbing for more of the world’s financial system.

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Should investors be worried about this call from the central bank? I’d say no. But is it time to make portfolio adjustments? Maybe. Let’s discuss.

Could the market tank?

Breeden is concerned that investors are in a complacent mood at the moment. In her view, people are ignoring the risks.

“There’s a lot of risk out there and yet asset prices are at all-time highs. We expect there will be an adjustment at some point.”
BoE Deputy Governor Sarah Breeden

And to be honest, I can see her point. I’m actually quite surprised that global markets are near all-time highs given that:

• Geopolitical uncertainty is high.
• Oil prices threaten to hit businesses and consumers.
• AI could possibly wipe out millions of jobs in the years ahead.

Personally, I wouldn’t be surprised if markets were to fall again. Because these are legitimate risks.

Be prepared and take advantage

Of course, stock market weakness is completely normal. While markets go up the majority of the time, they do have periods where they underperform.

The key, as an investor, is to be prepared for weakness. That means having the right asset mix.

Ideally, you want to have an asset allocation that matches your goals and risk tolerance and doesn’t keep you awake at night. For example, if you’re worried about the potential for a stock market crash, it’s probably not sensible to have 100% of your portfolio in shares.

It might be more sensible to have 20%–30% of your portfolio in cash. That way, if stocks fall, you’ll be less impacted.

You’ll also have firepower to capitalise on opportunities. While other investors are selling, you’ll be able to buy shares at low prices.

How I’m positioned

Personally, my own portfolio is only about 70% stocks right now. The rest is bonds, money market funds, and cash.

With this asset allocation, I can still benefit if markets move higher. However, if shares fall, the lower-risk assets will soften the blow and give me options.

Be ready to buy

I’ll point out that I’ve drawn up a list of stocks I’d like to buy if markets do fall. One name on it is Wise (LSE: WISE) – a leading international money transfer company.

I already own some shares here. But I’m keen to boost my position as this company – which I personally use to transfer money abroad all the time – continues to grow at a rapid rate.

For example, earlier this month, it told investors that it had 11.3m customers at the end of March, an increase of 22% year on year. For the quarter ended 31 March, cross-border payments volume was up 26% to a whopping £49.4bn.

Looking ahead, I expect the firm to continue growing as it offers the fastest and lowest-cost money transfers in the market. That said, a major economic collapse is a risk as is competition from other players such as Revolut.

Today, Wise trades at 27 times this year’s earnings forecast. At that valuation, I think it’s worth considering as this is a very scalable business.

Stock market weakness could present an even better buying opportunity though…

The post The stock market could plummet says the Bank of England appeared first on The Twelfth Magpie.

The share price, however, has gone nowhere. And while the company sees this as a reason to move to the US, I see an opportunity.

Payment processing

Since 2021, Wise has more than doubled its active users. And quarterly payment volumes have gone from £16.4bn to £49.4bn. 

It’s also increased its direct connections and lowered its take rate. That makes it faster, cheaper, and more reliable.

In short, Wise is twice the size and much stronger than it was when it went public. And it isn’t really slowing down.

The latest quarterly update revealed 22% growth in customers and a 26% increase in volumes. In short, things are still going well.

Despite all of this, the share price is largely where it was. And management is looking to do something about it.

The stock market

Wise’s leadership thinks the stock could do better with a primary listing in the US. And they might be right.

The company focuses on reinvesting the cash it generates. And this has worked very well in recent years.

The trouble is, that’s not what a lot the UK market is looking for. Having no dividend limits its popularity with income investors.

Wise’s share structure means it doesn’t qualify for the FTSE 100. And that cuts it off from another large investor class.

Neither of those is a bad thing intrinsically, but they don’t align well with Wise’s strategy. Neither, however, applies in the US.

UK stocks

In general, US investors are less focused on dividends. So they’re likely to be more receptive to Wise’s strategy.

A dual class share structure also doesn’t rule the stock out of the S&P 500. So it also stands to benefit from passive investing.

Wise’s management might therefore be right about what’s been holding the stock back. It could well do better in the US.

Whether or not that’s a good thing, though, depends on perspective. Low prices are bad for sellers, but they’re good for buyers.

Compared to 2021, investors have the chance to buy more than twice the business at the same price. That’s a rare opportunity.

Risks and rewards

A lower share price doesn’t change the underlying business. And it doesn’t remove any of the associated risks.

These include the impact of geopolitical tensions. This might be the biggest threat to international transfer volumes right now.

Neither Wise nor its shareholders can do much about this. So the question for investors is how to limit the overall risk.

Buying the stock at a lower price helps a lot with this. It gives investors a margin of safety against threats they can’t control.

That means a discounted share price is a good thing for buyers. And that’s why I think the UK is the place to look for opportunities.

Foolish conclusion

The UK isn’t the first place growth investors usually look. But that’s exactly why it might have the best opportunities.

Wise is a unique example. And I’m not saying every UK growth stock is systematically undervalued.

I do think, though, that less buying interest makes for better opportunities. And that’s why the UK is where I look first.

The post Why the UK might be the best place to look for growth stocks appeared first on The Twelfth Magpie.

However, a handful of the brightest UK growth firms did list in London back in 2021. One of them was Wise (LSE:WISE), the cross-border payments specialist.

And after posting another set of strong results yesterday (13 April), there’s a strong argument that this fintech is the UK’s top growth stock. Let’s take a closer look.

On a mission

For those unfamiliar, Wise’s founding mission is to “build money without borders“. Specifically to replace the hidden charges, marked-up exchange rates and slow transfers that still happen when money crosses borders.

Instead, the company’s global infrastructure moves money faster, more transparently, and at far lower cost. Over the long term, it aims to transfer trillions worldwide for consumers, businesses and banks.

In Q4 of its 2026 financial year (FY26), Wise made progress towards its ultimate aim. Quarterly cross-border volumes increased 27% on a constant currency basis to £49.4bn, while active customers grew 22% to 11.3m.

Wise was granted membership to Payments Canada in the period, opening up the potential for growth there. In Q3, it secured a conditional licence approval in South Africa and went live with a direct integration to Japan’s Zengin system.

Last year, Wise launched in Mexico, allowing Mexicans to send money abroad cheaply (and vice versa). And Itaú Unibanco, one of Latin America’s largest banks, is using Wise Platform (built for banks, fintechs, and large companies).

Quarterly underlying income jumped 24% on both a reported and constant currency basis to £435.3m. 75% of money was transferred instantly, up from 65% the year before.

For the full year, active customers were up 21% to 18.9m, driving cross-border volume 25% higher to £181.7bn. Reported underlying income rose 18% to £1.6bn, and the company expects its underlying pre-tax profit margin to be towards the top of its 13%–16% target range.

Moving stateside

Arguably, Wise doesn’t get the attention it deserves because it’s not in the FTSE 100, despite having a £10.5bn market cap. This is mainly due to its dual-class share structure, which gives the founders more control than regular shareholders (this helps prevent hostile takeovers).

In 2024, the UK overhauled the listing regime to attract growth firms and prevent others from leaving London. However, instead of joining the FTSE 100, Wise has chosen to move its primary listing to the Nasdaq.

It will keep a secondary listing on the London Stock Exchange. But the firm says this move stateside — where its largest market opportunity lies — will accelerate its “path to become ‘the’ network for the worldʼs money“.

Management is confident this will create long-term value for shareholders. As one myself, I’m optimistic the move could help Wise achieve a higher valuation.

Reasonably priced

Looking ahead, the company does face stiff competition from fintechs like Revolut (Wise has just launched a UK current account). Also, an economic slowdown could result in fewer money transfers.

Overall though, FY26 was another cracking year. With its growing global platform and massive long-term market opportunity, I do think Wise is the UK’s top growth stock today.

Currently, it’s trading at around 25 times forward earnings. At this reasonable valuation, I think it’s worth considering at around £10 per share.

The post Is Wise now the UK stock market’s top growth share? appeared first on The Twelfth Magpie.

One company that I feel doesn’t get enough attention from investors is international payments powerhouse Wise (LSE: WISE). In my view, this stock is a bit of a hidden gem in the UK market.

Strong results for Q4 FY2026

Today (13 April), Wise has posted a trading update for the fourth quarter of its 2026 financial year (FY26). And the numbers are very impressive, as usual.

For the quarter, cross-border volume grew 26% year on year (27% on a constant currency basis) to £49.4bn. Meanwhile, underlying income for the period £435.3m was up 24% on both a reported and constant currency basis.

At the end of the period, Wise had 11.3m active customers (+22% year on year). Business active customers amounted to 572,000 (+26%).

For the full FY26 year, cross-border volume was up 25% to £181.7bn. Underlying income was £1,609.2bn, up 18% on a reported basis.

It seems the market is happy with the numbers. As I write this, Wise’s share price is up about 5%.

That takes the stock’s year-to-date gain to about 12%. That’s roughly twice the gain of the FTSE 100 index.

The bull case

Now, from an investment perspective, these kinds of numbers are exciting. However, there are several other exciting parts to the investment case that are worth highlighting.

One is that the company is shortly about to move its primary listing to the US but will maintain a secondary listing on the London Stock Exchange. This could generate a lot of interest in the stock – the US market is much larger than the UK’s and investors are also far more interested in growth companies.

So, while it’s a bit of a hidden gem today, it may not be for much longer. I reckon it will be more popular once it’s listed in the US, especially given its mid-20s price-to-earnings ratio.

Another is that the company operates a ‘scale economies shared’ business model. This essentially involves continually lowering its transfer prices to enhance customer loyalty and keep customers coming back for more (note that its cross-border take rate reduced 1bp in Q4 to 51bps).

Now, a lot of investors are put off by the lowering of prices. However, this business model can actually be very powerful as it tends to really lock in customers. Amazon has had huge success with this model.

One other thing worth mentioning is that Wise has built a really great product. I use it to send money internationally all the time and I couldn’t be happier – payments are super fast and extremely cheap!

An opportunity?

In terms of risks to the investment case, competition from the likes of Revolut is one. I don’t plan to switch to another provider any time soon as Wise’s platform is brilliant but rival services are a potential threat.

Another is a general economic slowdown. This could lead to less money being transferred globally.

Overall though, I see a lot of appeal here given the business model, the growth being generated, and the valuation. I think this company is worth a closer look today, before it moves its primary listing to the US.

The post Wise: a hidden gem in the UK stock market appeared first on The Twelfth Magpie.

However, only 57% of the Baillie Gifford-managed trust’s assets are listed in North America. Most of the rest come from Asia (21%) and Europe (15.3%), including five stocks from the UK.

Here’s my favourite from this quintet of homegrown growth companies.

The not-so-famous five

At the end of February, Scottish Mortgage held 101 companies (48 public and 53 private). The five from the UK were Wise (LSE:WISE), Ocado, Revolut, Blockchain.com, and fintech Teya (formerly known as SaltPay).

Now, the last one (a payments firm) I’m not familiar with because it’s unlisted. And I note it’s a very small holding at just 0.06% of assets.

Similarly, cryptocurrency exchange and wallet provider Blockchain.com is private. Recently, it won regulatory approval in the UK after four years of trying. It has a far larger weighting in the portfolio (0.84%).

Revolut, the third unlisted UK holding, is very familiar because I’ve been a customer for years. And now the fintech powerhouse has finally got its full UK banking licence, I’m considering moving everything over to Revolut (current account, credit card, etc).

Were the digital bank to go public, I would look at buying shares. Because last year Revolut reported a pre-tax profit of $2.3bn, a 57% increase from 2024, on revenue of $6bn. This 38% margin is very impressive.

Total customer balances rocketed 66% to $67.5bn (£50.2bn), while 11 different product lines now exceed £100m in annual revenue.

Admittedly, the fintech faces fierce competition worldwide and its valuation looks steep (it was valued at $75bn in November and could top $100bn next time). But it already has banking licences in more than 30 markets, and is aiming for 100 over the next few years.

Hopefully Revolut has a dual listing in London at some point.

My favourite

So, out of Ocado and Wise, which is my favourite stock I can actually buy today? Well, that would have to be Wise, the low-cost international money transfer firm (I already hold shares).

Unlike loss-making Ocado, Wise is already firmly profitable. For the financial year to 31 March, it’s expected to record £370m in net income from revenue of £1.75bn.

Wise now has more than 11m active customers, including banks like Monzo and Standard Chartered, and delivers 74% of payments instantly. Looking ahead, it’s aiming to move trillions at low cost for both businesses and individuals (up from about £180bn last year).

As Scottish Mortgage writes: “Low costs and quality service have resulted in rapid growth and a high level of customer trust. Wise is now operating at a level of scale that gives it a distinct competitive advantage…Wise [has] the ability to grow many times from its current base“.

Unsurprisingly, the firm is a larger weighting in the trust’s portfolio, at 1.8%. However, fellow holding Revolut is a competitive risk. And the rivalry could be set to heat up, with Wise reportedly mulling up a UK bank licence.

However, its core global cross-border payments market is massive (£32trn annually!). With Wise stock trading at a reasonable 24 times forward earnings, I think it’s well worth considering.

The post Scottish Mortgage has made a fortune on SpaceX and Tesla! Here are 5 UK stocks it owns appeared first on The Twelfth Magpie.

Here, I’m going to highlight two world-class stocks that are currently trading about 20% below their highs. In my view, these shares are very much worth considering for a portfolio today.

This legendary growth stock looks cheap

First up, we have a blue-chip growth stock, Amazon (NASDAQ: AMZN). It’s currently trading for around $200, down from near $250 earlier in the year.

At that price, I see a real opportunity here. Because looking at analysts’ earnings projections, the price-to-earnings (P/E) ratio is only 21 using next year’s forecast.

That strikes me as low given the long-term growth potential. This is a company that’s a global leader in e-commerce, cloud computing, artificial intelligence, robotics, self-driving cars, and space satellites, so it has a long growth runway ahead of it.

Note that the average analyst price target is $280. So, analysts seem to share my bullish view.

Personally, I don’t think the company is getting enough credit for its AI potential. Not only has Amazon developed its own AI chips but it also offers access to a broad range of AI solutions and is developing its own agentic AI software to automate functions (according to a recent report from Bloomberg).

Now, there are a few risks to be aware of. The biggest is probably a consumer spending slowdown caused by AI job losses.

This scenario might not affect Amazon as much as some other retailers as it sells a lot of cheap goods and has millions of customers locked in with Prime memberships. But it’s something to keep in mind.

Analysts see the potential for 50% gains

The other stock I want to highlight is international payments powerhouse Wise (LSE: WISE). It’s currently trading for around 915p, down from above 1,150p in September last year.

Again, I see a lot of value here. If we take the earnings forecast for the financial year starting today (1 April), the forward-looking P/E ratio is only 24.

Considering the rate at which this company is growing its revenues and earnings, that seems very reasonable to me. For the quarter ended 31 December 2025, underlying income was up 21% year on year to £424.2m, fuelled by a 26% increase in cross-border payments volume.

It’s worth noting that Wise’s earnings don’t always rise in a straight line. This company likes to continually make its services better for customers and this can temporarily impact its profitability.

This can spook short-term investors and lead to share price weakness (it’s one of the reasons the share price is down at the moment). A lot of investors get frustrated when they don’t see linear earnings growth.

I believe that this stock has all the right ingredients to be a great long-term investment, however. It’s worth noting that analysts at JP Morgan recently raised its target price to 1,385p – that’s about 50% above today’s share price.

The post 2 world-class stocks to consider buying while they’re down 20% and ‘on sale’ appeared first on The Twelfth Magpie.

Right now, shares in some outstanding businesses are trading at unusually low prices. And when that happens, investors should be thinking about piling in. 

Long-term quality

When it comes to investing, I tend to think that the quality of the underlying business is what matters most over the long term. But even the best companies have their ups and downs. 

One thing that can cause this to happen is when a firm invests heavily to boost its competitive position. That causes profit margins to contract and the stock starts to look expensive. 

A lot of the time, though, this is just the company investing in its own growth. And the results show up in the cash flow statement sooner or later. 

In the short term, though, it can cause share price volatility. But this is something investors who think in years or decades – rather than weeks or months – can take advantage of.

Wise

UK-listed Wise (LSE:WISE) is a good example of this. It feels like every time the payment processor reports earnings, its take rate (the amount it charges) is lower than it was before.

Almost every time, the stock market interprets this as a sign of weakness – why would the firm charge less unless it’s facing competitive pressure? In reality, though, it’s the opposite. 

Driving down prices widens the gap between the business and its nearest competitor. And it means that anyone looking to send money has an even stronger reason to use the UK company. 

The risk is that banks start bringing down their own charges for cross-border transactions. But while that threat can’t be eliminated, bringing down its own take rate does help Wise to limit it.

MercadoLibre

MercadoLibre (NASDAQ:MELI) is in a similar situation. In its most recent update, it reported 45% revenue growth and an 11% decline in earnings per share – the stock fell 14% as a result. 

The main reason margins fell is that the e-commerce company made some big investments. It lowered its threshold for next-day delivery and invested heavily in new fulfilment centres.

Those might weigh on short-term profits, but they significantly strengthen the firm’s long-term position. Competitors now have to offer something similar or risk being left behind.

Without MercadoLibre’s scale, that’s extremely hard to do without losing money. And that’s why I think the stock market’s reaction is the wrong one from a long-term perspective.

Be greedy

Most of the time, the stock market knows that Wise and MercadoLibre are outstanding businesses with terrific growth prospects. And it prices them accordingly. 

Right now, though, I think investors are focusing on the risks. In Wise’s case, that’s the possibility of geopolitical tensions making it harder to facilitate transactions across borders. 

With MercadoLibre, there’s a threat of higher oil prices reigniting hyperinflation in Argentina. The situation is just starting to come under control, so that could be a real setback.

A lot of the time, investors ignore these risks – and that’s a mistake. But it’s also a mistake to focus on them too much, which is what I think is going on right now. 

As a result, I think these are two growth stocks that investors should consider buying in March. They’re extremely high-quality businesses trading at unusually low multiples.

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Here are two that I think long-term investors should consider snapping up in March (or before) for an ISA.

Down 25%

Let’s start with Wise (LSE:WISE), which surged 17% a month ago but has since lost almost all those gains.

The reason for the rise was strong trading in the money transfer firm’s Q3 2026 (ended 31 December). It said cross-border volume jumped 26% year on year at constant currency to £47.4bn, helping underlying income rise 21% to £424.4m.

By offering a cheaper and faster service, Wise is aiming to become the world’s major network for moving money around. And it’s making strides towards this, with 74% of transfers made instantly during the quarter, up from 65% the year before.

A deal was signed to deliver Google Pay for customers in the Philippines, while the Wise travel card was introduced in India. The firm ended the quarter with nearly 11m active customers, including a growing number of businesses.

Of course, as Wise moves deeper into complex markets like India and South Africa, regulatory and compliance risks multiply. Revolut also poses a potential competitive threat, with its significantly larger customer base.

However, on balance, I think the stock’s worth considering after falling 25% since September. It’s trading at 22.5 times forward earnings, which I don’t see as expensive for a solidly profitable firm with plenty of growth left in the tank.

Finally, it’s worth noting that Wise will list its shares in New York by June. This should raise the company’s profile in a major growth market while opening up its shares to a much larger pool of US investors.

Down 44%

The second UK share I want to highlight is Autotrader (LSE:AUTO). This FTSE 100 member has nosedived 44% in just six months!

There appears to be two main reasons. First, the company has upset some car dealers with its Deal Builder product, resulting in some of them cancelling and downgrading their subscription packages.

However, management’s working hard to resolve these gripes. And while most car buyers continue to browse Autotrader’s platform, sellers will need to be there too. I don’t see this issue breaking the firm’s powerful network effect.

Second, the stock’s been caught up in the whole data/software sell-off. For Autotrader, the fear appears related to disintermediation.

In other words, if a buyer can just ask an AI app, “find me a white Mercedes A45 within 50 miles of Luton with full service history”, the AI may pull data directly from dealer websites. Autotrader could start losing its gatekeeper status.

While a potential risk, it’s worth noting that Autotrader previously survived the competitive threat from Facebook Marketplace. The brand is highly trusted, with 82% of users habitually going directly to its site. For the other 18%, Autotrader’s increasing its visibility inside AI apps like ChatGPT. 

Looking ahead, the government’s new electric vehicle grant’s expected to support further volume growth.

And with Autotrader trading at just 12.5 times forward earnings, while buying back loads of its own shares, I think this stock dip looks attractive and worth thinking about.

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