Clear market notes built around the JSE, the rand, and what matters locally.

2026-09-03 22:17 • The Motley Fool Negative Axe Cap view: Selective

Credo Technology stock plunged 29.5% this week despite beating earnings expectations with 114.7% revenue growth and 130% EPS growth. The sell-off was driven by margin pressure, with GAAP gross margins falling to 64.5% from 68% last quarter, and higher-than-expected stock-based compensation. At a valuation of ~50x true forward earnings when accounting for stock dilution, investors viewed the results as insufficient given the company's already high valuation.

Axe note: A strong revenue beat failed to stop a sharp share price drop due to margin concerns and valuation worries.

2026-09-03 22:13 • The Motley Fool Positive Axe Cap view: Selective

Nvidia announced its acquisition of Hugging Face for $12.93 billion on September 3, 2026. The deal gives Nvidia control of a major open-source AI platform used by 18 million developers and 200,000 companies. While Nvidia pledges the platform will remain open and hardware-agnostic, the acquisition strategically positions Nvidia to influence AI software development decisions and potentially drive demand for its chips, despite the steep valuation relative to Hugging Face's $150 million annual revenue.

Axe note: Nvidia's $12.93 billion acquisition highlights increased integration of AI software and hardware, with implications for JSE tech-linked stocks and the rand.

2026-09-03 21:45 • Zacks Investment Research Positive Axe Cap view: Neutral

General Motors (GM) rose 2.77% to $87.22 in the latest session, outperforming the S&P 500's 1.06% gain. However, the stock has declined 4.81% over the past month, underperforming its sector's 7.67% gain. GM is expected to report EPS of $3.37 (up 20.36% YoY) with revenue of $48.22 billion (down 0.77% YoY). The company holds a Zacks Rank #3 (Hold) with a Forward P/E of 6.38, trading at a discount to its industry average of 18.64.

Axe note: General Motors’ recent earnings optimism contrasts with weak recent price performance, signaling a wait-and-see stance.