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2026-10-26 17:00 • The Motley Fool Positive Axe Cap view: Selective

SpaceX reported $4.4 billion in net income for Q3 2026, but nearly 13% ($561 million) came from an unrealized accounting gain on its investment in The Boring Company following a $3 billion funding round. While SpaceX's operating income of $2.8 billion shows genuine operational improvement, the company is spending heavily on capex ($19.6 billion in Q3 alone) for AI infrastructure, Starship development, and satellite production, with guidance of $35-40 billion for Q4.

Axe note: SpaceX’s Q3 profit leap owes much to paper gains and enormous capex, raising caution for investors.

2026-10-26 16:54 • The Motley Fool Positive Axe Cap view: Selective

Lockheed Martin stock surged 3.3% after three Wall Street analysts published positive reports. Morgan Stanley upgraded the stock to 'overweight' with a $835 price target, citing a 10-year F-35 production contract and strong missile sales. Bank of America and JP Morgan raised price targets to $620 and $665 respectively, though kept neutral ratings. Concerns remain about potential margin compression from increased F-35 production at bulk rates.

Axe note: Strong defense contracts keep Lockheed Martin’s stock rising, but watch for profit margin squeeze.

2026-10-26 16:52 • The Motley Fool Neutral Axe Cap view: Selective

Netflix reported Q3 earnings that met revenue expectations and beat on EPS, but disappointed the market with underwhelming full-year guidance projecting 13% revenue growth. The stock has declined 30% year-to-date and is now trading at a forward P/E of 17, below the S&P 500 average of 19. Despite near-term headwinds around slowing growth, the analyst suggests the stock may be an attractive buy for patient investors given its reduced valuation and double-digit growth fundamentals.

Axe note: Netflix missed big growth expectations but trades at a more attractive valuation, tempting long-term buyers.