Archive

2026-07-17 09:06 • The Motley Fool Neutral Axe Cap view: Selective BRK.A BRK.B

Warren Buffett, who retired as Berkshire Hathaway CEO on Dec. 31, warns that the stock market is plagued by gambling culture rather than genuine investing. He criticizes current market valuations as excessive, with the Buffett indicator hitting an all-time high of 238.5% and the S&P 500's Shiller P/E ratio near 43, indicating a lack of value in today's market.

Axe note: Warren Buffett calls out today’s frothy markets, urging caution amid record-high valuations.

2026-07-17 09:05 • The Motley Fool Positive Axe Cap view: Selective CBRS NVDA AMD AMZN

Cerebras Systems, which completed the year's biggest IPO by May with $5.5 billion raised, is expected by Wall Street to gain 47% over the next 12 months. The company designs giant AI chips that claim to surpass Nvidia's GPUs in speed, with 58 times larger size and 2,000 times more memory bandwidth. While revenue grew 92% to $193 million in the latest quarter, the stock carries risks including reliance on a small customer base and lack of profitability. The article recommends it for aggressive investors but cautions conservative investors to stick with established players like Nvidia.

Axe note: The sky-high hopes for AI chip IPO Cerebras won't directly move the JSE, but the rand’s reaction to US tech trends matters more here.

2026-07-17 09:02 • The Motley Fool Negative Axe Cap view: Bearish SPCX TSLA

SpaceX faces significant downside risks following its IPO, with analyst Geoffrey Seiler citing three major concerns: an extreme valuation of $1.7T market cap with a forward P/S multiple of 40x despite projected cash burn until 2035, CEO Elon Musk's poor track record on delivering promises (fewer than 20% delivered on schedule), and massive share dilution from 15 lockup expirations over the next year that could flood the market with over 911 million shares in the first expiration alone.

Axe note: SpaceX’s IPO risks a sharp pullback due to unrealistic valuation, delivery doubts, and impending share dilution.

2026-07-17 08:31 • The Motley Fool Positive Axe Cap view: Selective SNDK WDC

Sandisk, spun off from Western Digital in early 2025, has surged 3,748% from its 52-week low as demand for AI storage infrastructure accelerates. The company benefits from a memory supercycle driven by hyperscaler AI investments, with $42 billion in multiyear supply contracts providing revenue visibility. Despite the massive rally, analysts project significant EPS growth from $66.51 to $208.22 next fiscal year, valuing the stock at a modest 7.6x forward P/E. The author views Sandisk as a compelling long-term buy given the secular nature of AI infrastructure spending.

Axe note: Sandisk’s 3,700% jump reflects booming AI demand, but is this rally sustainable or priced for perfection?

2026-07-17 08:05 • The Motley Fool Mixed Axe Cap view: Selective MSFT AMD INTC NVDA

Microsoft and Advanced Micro Devices are positioned to outperform over the next five years as AI adoption drives data center expansion. Microsoft's stock has fallen 30% from recent highs, offering a buying opportunity with strong cloud and Copilot demand, while AMD is benefiting from growing AI inference demand and gaining server CPU market share from Intel.

Axe note: Microsoft and AMD stand out in AI-driven growth; Intel lags amidst fierce data center battles.

2026-07-17 08:03 • The Motley Fool Positive Axe Cap view: Bullish GOOG GOOGL GOOGM GOOGN ASML

Alphabet is recommended as a buy ahead of its July 22 earnings report, driven by strong performance in advertising (70% of revenue, up 15% YoY) and explosive cloud growth (60% revenue increase to $20B). The company's AI assistant Gemini has captured 27.7% market share, and AI solutions are driving cloud revenue. Trading at a reasonable 25x forward earnings, Alphabet appeals to both conservative and aggressive investors as it has strong fundamentals beyond AI while benefiting from the AI boom.

Axe note: Alphabet shows solid growth in ads and cloud, making it a tempting buy before July 22 results.

2026-07-17 07:25 • The Motley Fool Positive Axe Cap view: Selective NVDA

Nvidia's stock trades at a modest 32x P/E ratio despite 85% yearly revenue growth, potentially reflecting investor concerns about historical tech spending booms ending in busts (dot-com, Great Depression). However, the article argues Nvidia's low forward valuation of 24x and strong predicted growth through fiscal 2027 suggest the stock is insulated from such risks, even if AI spending eventually slows.

Axe note: Nvidia’s modest P/E ratio looks cheap given its stellar growth, but history makes some investors wary.

2026-07-17 07:05 • The Motley Fool Neutral Axe Cap view: Neutral TSLA

Tesla's stock has dipped below $400 ahead of July 22 earnings, prompting investors to consider whether this is a buying opportunity. While Musk's commitment to long-term vision in autonomous driving, robotics, and AI is noteworthy, the article cautions that timing purchases around earnings is risky given Tesla's premium valuation and history of missed timelines. The key question for investors is whether they're willing to hold through years of volatility for an unproven autonomous future, rather than betting on short-term earnings surprises.

Axe note: Tesla's pullback before earnings tests the patience of those betting on Musk's long game.

2026-07-17 07:00 • The Motley Fool Positive Axe Cap view: Selective RGTI RGTIW

Rigetti Computing is positioning itself as a potential winner in sovereign quantum hardware through its U.S.-based Fab-1 facility, government-linked research, and superconducting quantum platform. The company's prospects depend on whether America treats domestic quantum capability as strategic infrastructure. The stock is described as a risky but fascinating investment opportunity.

Axe note: Rigetti’s US-focused quantum hardware push may shape future tech rivalry, but local impact is distant and speculative.

2026-07-17 06:30 • The Motley Fool Negative Axe Cap view: Selective SPCX

SpaceX's stock, which recently completed its IPO at $135, could decline significantly by 2028 due to three main factors: fading post-IPO enthusiasm as investors evaluate fundamentals, substantial operating losses in its AI segment ($6.4 billion loss on $3.2 billion revenue in 2025) with unclear profitability timeline, and increasing international competition in reusable rocket technology from Japan and China that could erode its technological advantage.

Axe note: SpaceX faces headwinds that could send its stock down 30% by 2028, despite early excitement.

2026-07-17 04:25 • The Motley Fool Positive Axe Cap view: Selective NVDA GOOG GOOGL GOOGM GOOGN SPCX SKHY

SpaceX, Alphabet, and SK Hynix are significantly increasing capital expenditures on AI infrastructure, signaling strong continued demand for Nvidia's products. SpaceX is investing $30.8 billion annually in its AI segment, Alphabet committed to $180-190 billion in capex with further growth expected in 2027, and SK Hynix is investing $743 billion to expand HBM chip manufacturing capacity. These investments suggest the AI infrastructure spending boom is accelerating rather than facing a slowdown.

Axe note: Heavy AI infrastructure spending by SpaceX, Alphabet, and SK Hynix points to ongoing strong demand for Nvidia's chips.

2026-07-17 03:29 • The Motley Fool Negative Axe Cap view: Selective NFLX WBD

Netflix reported record Q2 revenue of $12.56 billion with 13% YoY growth, slightly beating analyst expectations. However, the company's forward guidance for Q3 and full-year 2026 fell short of consensus estimates, causing a 9% after-hours stock decline. While the company is expanding content offerings including sports and wrestling, investors appear hungry for more tangible growth catalysts amid intense streaming competition.

Axe note: Netflix’s strong Q2 revenue masked a cautious outlook that hit its shares hard.

2026-07-17 01:15 • The Motley Fool Neutral Axe Cap view: Selective SPCX ASTS RKLB IRDM

SpaceX has fallen back to its IPO price of $135. The article compares two alternatives: AST SpaceMobile, which focuses on satellite-based broadband through telecom partnerships but doesn't launch its own satellites, and Rocket Lab, which will become fully integrated after acquiring Iridium Communications. All three companies are unprofitable startups, making them suitable only for aggressive growth investors.

Axe note: Evaluating two SpaceX competitors through a South African investor lens reveals caution and a watchful stance.

2026-07-17 00:33 • The Motley Fool Positive Axe Cap view: Selective GOOG GOOGL GOOGM GOOGN BRK.A BRK.B

Warren Buffett revealed he personally initiated Berkshire Hathaway's $31 billion Alphabet investment, calling it a mistake not to buy sooner. Despite owning the position, Buffett expressed concerns about the massive AI spending by Alphabet and competitors. Alphabet showed strong Q1 2026 results with 22% revenue growth and Google Cloud accelerating at 63%, though the company faces risks from heavy capital expenditure plans of $180-190 billion annually.

Axe note: Warren Buffett personally initiated Berkshire Hathaway’s massive Alphabet investment but voices caution on AI costs.

2026-07-17 00:10 • The Motley Fool Positive Axe Cap view: Selective NVDA TSM AMD

TSMC reported strong Q2 earnings with revenue up 33% and EPS up 77%, driven by AI chip demand. The company announced a $100 billion additional investment in Arizona manufacturing, including advanced packaging capabilities, which could benefit customers like Nvidia. TSMC's CEO indicated strong demand signals from cloud providers, suggesting sustained long-term AI growth and supporting Nvidia's valuation at 23x forward earnings.

Axe note: TSMC’s big investment signals a longer AI growth cycle that supports Nvidia but leaves local investors to play currency and banks.

2026-07-16 23:19 • The Motley Fool Positive Axe Cap view: Selective CRDO

Chi Fung Cheng, CTO of Credo Technology Group, sold 27,500 shares worth $6.6 million through a pre-arranged trading plan established in September 2025. The sale represents only 0.46% of his total holdings, with the insider maintaining approximately 6 million shares worth over $1.3 billion. The transaction is characterized as routine diversification following a 139% one-year stock surge, rather than a bearish signal. Credo has demonstrated strong fundamentals with tripled fiscal 2026 revenue exceeding $1.3 billion and net income growth of over 500%.

Axe note: A small, planned sale by Credo’s CTO after a 139% rally points to routine diversification, not trouble ahead.

2026-07-16 23:16 • The Motley Fool Positive Axe Cap view: Selective O

June's inflation report showing a decline to 3.5% year-over-year is positive news for Realty Income, a rate-sensitive REIT. With cooling inflation reducing the likelihood of further Fed rate hikes, the stock becomes more attractive for income investors seeking its 5.1% yield and 31-year dividend growth track record. The company owns 15,571 properties with 98.9% occupancy and trades at 14x expected AFFO.

Axe note: Cooling inflation and a pause in Fed rate hikes make rate-sensitive REITs like Realty Income worth a look from a rand perspective.

2026-07-16 23:13 • The Motley Fool Positive Axe Cap view: Selective KO

Coca-Cola is recommended as a buy ahead of its July 28 earnings report. The beverage giant has beaten earnings expectations for four consecutive quarters, maintains a 64-year dividend increase streak (Dividend King status), generates strong free cash flow of ~$2 billion quarterly, and offers a 2.5% dividend yield. Despite trading at a premium valuation (forward P/E of ~25) and reaching all-time highs, the stock has gained 18% year-to-date and remains a steady, income-generating investment with new leadership focusing on innovation.

Axe note: Coca-Cola’s steady earnings and dividend streak make it attractive despite a rich valuation.

2026-07-16 23:10 • The Motley Fool Negative Axe Cap view: Selective SPCX TSLA AAPL NVDA

SpaceX has fallen below its $135 IPO price after an initial 20% surge. Historical analysis of major IPOs shows eight of ten experienced declines in the first three months, with an average drop of 13%. The article suggests most investors should wait for future buying opportunities rather than investing at current levels, citing the company's heavy investment needs and technology risks.

Axe note: SpaceX's share price falling below its IPO level is a classic early-stage signal; South Africans should watch but avoid jumping in now.

2026-07-16 23:08 • The Motley Fool Positive Axe Cap view: Selective CRDO

Credo Technology Group's COO Lam Yat Tung sold approximately 106,000 shares worth $23.9 million on July 15, 2026, under a pre-planned Rule 10b5-1 trading plan adopted in April. Despite the sale, the insider maintains over 3.1 million shares valued at $705 million. The transaction represents less than 4% of his holdings and follows a 121% one-year stock appreciation. Analysts view this as routine portfolio management rather than a bearish signal, particularly given Credo's strong financial performance with fiscal 2026 revenue exceeding $1.3 billion and record quarterly results.

Axe note: Credo Technology’s COO sold a small portion of shares after a 121% run-up, showing confidence still intact.