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2026-07-20 19:26 • The Motley Fool Positive Axe Cap view: Selective

Salesforce stock, down 40% from its 52-week high to $171, is predicted to reach $250 by end of 2028 based on modest assumptions: 10% annualized earnings growth and a valuation multiple recovery from 12x to 15x forward earnings. The prediction relies on the company executing its guided 11% revenue growth and continued share buybacks, without requiring AI acceleration or multiple expansion to historical levels.

Axe note: Salesforce’s steady growth and buybacks highlight a cautious optimism relevant to USD/ZAR and SA tech exposure.

2026-07-20 19:26 • The Motley Fool Mixed Axe Cap view: Selective

ServiceNow stock has plummeted 51% from its 52-week high amid fears that AI will disrupt its enterprise software business. However, Q1 results show strong subscription revenue growth of 22% YoY and robust contract metrics, contradicting the disruption thesis. The company's July 22 earnings report will be a critical test of whether the market's pessimism is justified or represents an overreaction.

Axe note: Despite a 51% selloff, ServiceNow’s solid growth challenges fears that AI will destroy its business.

2026-07-20 19:05 • The Motley Fool Negative Axe Cap view: Selective

Apple stock fell 2.3% despite Bank of America analyst Wamsi Mohan reiterating a 'buy' rating and $380 price target. Investors sold off the stock after Mohan warned that rising component costs will reduce gross margins to 36.8% in Q3 2026 and further to 34.1% in Q4, though he expects margins to rebound above 38% in Q1 2027. The stock's valuation at 40x earnings with only 13% long-term growth, combined with CEO Tim Cook's departure, added to investor concerns.

Axe note: Apple’s stock fell as rising costs and leadership changes cast doubt on near-term profitability.