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2026-09-02 05:30 • The Motley Fool Negative Axe Cap view: Selective

Credit card delinquency rates continue trending lower for large banks (2.58% in Q2), but are rising for smaller community banks (6.49% in Q2). The divergence reflects that large banks can absorb credit losses through diverse revenue streams, while smaller banks face greater pressure as their customers struggle with economic hardship. This trend could impact bank stock performance as delinquencies signal consumer financial stress and require higher provisions for credit losses.

Axe note: Credit card delinquencies climb at smaller banks even as large banks stay stable, raising concerns for South Africa's banking sector.

2026-09-02 04:15 • The Motley Fool Mixed Axe Cap view: Selective

The Trade Desk's stock plummeted 24% in August following disappointing Q2 earnings that showed just 3% revenue growth and missed profit estimates. The company is losing market share to tech giants like Alphabet, Meta, and Amazon, with weak spending in key verticals and a concerning Q3 outlook projecting a 12% year-over-year revenue decline. CEO Jeff Green lacks a clear turnaround strategy, raising concerns about the company's long-term relevance.

Axe note: The Trade Desk’s sharp drop highlights the challenge of competing with digital giants, a story with local tech parallels.

2026-09-02 03:06 • The Motley Fool Neutral Axe Cap view: Neutral

Broadcom's profit growth (127%) is significantly outpacing revenue growth (32%) due to disciplined cost management, with operating expenses rising only 6% while revenue jumped 48% in fiscal Q2. The company's fiscal Q3 earnings report on September 2 will test whether this cost discipline holds as revenue is expected to reach $29.4 billion. However, at a P/E ratio of 60x, the stock's valuation depends heavily on maintaining this profit growth trajectory, which could face pressure from AI product mix headwinds and eventual expense scaling.

Axe note: Broadcom’s earnings show impressive profit growth but its lofty valuation asks for sustained cost discipline.