The start of a new year is often a natural time for investors to reset, reassess, and look ahead to where the next opportunities might emerge. While nobody can predict short-term market movements, a mix of stabilizing economic conditions, easing inflation pressures, and accelerating digital transformation could create fertile ground for select ASX stocks.
With that in mind, here are two Australian shares that look particularly interesting to watch as the new year gets underway.
Light & Wonder Inc: A Strategic Transformation
Light & Wonder Inc (ASX: LNW) enters 2026 as a very different company compared to the one investors knew just a few years ago. Following its strategic transformation away from traditional lotteries, the business is now a focused global gaming and digital entertainment group. It operates across land-based gaming machines, online real money gaming, and social casino platforms, giving it exposure to multiple growth avenues within the global gaming industry.
A key attraction is the company’s increasing emphasis on recurring and digital revenues. Its content portfolio continues to perform strongly across casinos worldwide, while its digital division benefits from the structural shift toward online gaming and mobile-first entertainment. If management continues to execute well and digital earnings expand as expected, Light & Wonder could be well-positioned for further growth as 2026 unfolds.
UBS is bullish on the company. It recently put a buy rating and $206.00 price target on Light & Wonder’s shares. This implies potential upside of approximately 30% for investors in 2026.
Megaport Ltd: Riding the Cloud Wave
Megaport Ltd (ASX: MP1) is another ASX stock worth keeping a close eye on in the year ahead. The company operates a global software-defined networking platform that allows businesses to instantly connect their infrastructure to leading cloud providers such as Amazon Web Services, Microsoft Azure, and Google Cloud. As enterprises increasingly adopt multi-cloud and hybrid IT strategies, demand for fast, flexible, and secure connectivity continues to grow.
While Megaport has faced share price volatility in recent years, its underlying business metrics have improved markedly. The company has been focused on driving operating leverage, improving margins, and moving toward sustained profitability. If cloud adoption trends continue and Megaport delivers on its execution goals, 2026 could mark an important turning point for the business.
Especially given its recent acquisition of Latitude.sh, which is a global, automated infrastructure platform delivering compute-as-a-service. This has expanded its total addressable market materially.
Market Context and Future Outlook
The announcement comes as investors are increasingly looking for companies that can thrive in a rapidly changing economic landscape. The global gaming industry, valued at over $200 billion, continues to grow, driven by technological advancements and increasing consumer demand for digital entertainment. Light & Wonder’s strategic pivot positions it well to capture a larger share of this expanding market.
Meanwhile, the cloud computing market is expected to exceed $1 trillion by 2028, according to industry analysts. Megaport’s innovative solutions and strategic acquisitions place it in a strong position to capitalize on this growth. As businesses continue to migrate to the cloud, the demand for seamless, efficient connectivity solutions is set to rise, providing a robust growth platform for Megaport.
According to industry experts, the key for both companies will be their ability to adapt to market changes and continue executing their strategic plans. Investors will be watching closely to see if Light & Wonder can maintain its momentum in the gaming sector and if Megaport can leverage its recent acquisitions to drive growth.
Conclusion: Strategic Moves and Investor Confidence
The move represents a significant shift for both companies, highlighting the importance of strategic agility in today’s fast-paced market environment. As 2026 unfolds, investors will be keenly observing how Light & Wonder and Megaport navigate the challenges and opportunities that lie ahead.
With positive analyst ratings and strategic plans aligned with industry trends, these two ASX stocks could offer compelling opportunities for investors looking to capitalize on the next wave of growth in the gaming and cloud sectors.
