Motley Fool's Stock Advisor service has updated its advertised average return to 987% as of August 29, 2026, up from 964% in a prior snapshot. The figure represents the arithmetic average of all stock recommendations made since February 2002, measured from each recommendation's closing price to current market levels. Over the same period, the S&P 500 averaged a 215% return, including reinvested dividends, creating a 772-percentage-point performance gap.
This headline number is not a reflection of an individual subscriber's portfolio. The calculation includes every recommendation, active or sold, and does not account for timing, position sizing, taxes, or trading costs. A real investor who adds funds at different dates and allocates capital unevenly would likely see different results. The service itself advises members to hold more than 50 positions and suggests a $25,000 portfolio size, which makes the $199 annual fee equivalent to 0.80% of capital, or 0.40% at the introductory price of $99.
The 23-point increase from 964% to 987% is driven by mark-to-market adjustments on historical picks, not new recommendations. A strong session for old winners can shift the headline average without altering the quality of current picks. The service continues to release two new stock picks each month, emphasizing patience and diversification as core principles.
Historical outliers play a significant role in the average. Nvidia, recommended in April 2005, has appreciated 139,827% according to the service's records, while Netflix, recommended in December 2004, is up 42,957%. These extreme gains pull the arithmetic mean upward, but they are not accessible to new members who cannot buy at original prices. The average is a historical observation, not a forecast of future performance.
An academic study published in 2017 found that Stock Advisor recommendations generated significant abnormal returns in its sample period, but the authors also noted the importance of considering market-adjusted portfolios rather than relying solely on advertised averages. The study's findings highlight the potential value of the service but do not guarantee future results.
Investors should interpret the 987% claim with caution. The figure is an average of all recommendations, not a compound annual growth rate. A member's actual return depends on which picks they follow, when they buy, and how much they allocate. Concentrated exposure to growth stocks, which have driven much of the historical outperformance, can lead to deeper drawdowns in market downturns.
The key takeaway is methodological. The advertised return measures the average historical performance of recommendations, not the experience of any individual subscriber. Prospective buyers should evaluate whether the service's approach aligns with their investment goals and risk tolerance. Past performance offers evidence, but it is not a guarantee of future results.
For those considering a subscription, the current promotional price of $99 for the first year is a modest entry point, but the renewal rate will revert to the then-current list price. The service's emphasis on long-term, diversified holdings may suit patient investors, but those seeking quick gains or who cannot maintain a broad portfolio may find the actual results differ significantly from the headline number.
