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

2026-07-23 07:22 • The Motley Fool Positive Axe Cap view: Selective

DigitalOcean has experienced explosive growth driven by AI demand, with its stock surging 360% over 12 months. The company is building AI data centers and reported a tenfold increase in remaining performance obligations to $800 million. While trading at a premium valuation (P/S ratio of 15.4), its forward P/S ratio of 8.1 based on 2027 guidance suggests potential value. The Aug. 4 earnings report could be pivotal, with management expected to raise 2027 revenue growth guidance above the previously stated 50%.

Axe note: DigitalOcean’s rapid AI-driven growth is impressive, but prudent investors should await clearer signals from the upcoming earnings.

2026-07-23 07:15 • The Motley Fool Positive Axe Cap view: Selective

The article recommends buying Amazon and Meta stocks ahead of their earnings reports on July 29-30. Amazon is expected to show accelerating AWS cloud revenue growth driven by AI infrastructure investments and strong e-commerce profitability from robotics and AI efficiency gains. Meta is shifting its AI narrative positively with cloud computing partnerships, custom chips, and improved ad performance, trading at attractive valuations compared to peers.

Axe note: Amazon and Meta show promising AI-led growth before July 29 earnings, but South African investors need to weigh the dollar’s strength.

2026-07-23 07:12 • The Motley Fool Negative Axe Cap view: Selective

Gartner's stock plummeted nearly 49% in the first half of 2026 as investors worry that AI models are cannibalizing demand for the company's analysis and advisory services. Despite beating earnings estimates, the company reported anemic growth metrics, with global contract value rising less than 1% year-over-year and full-year revenue guidance falling below analyst consensus. The divestiture of its digital market division at a discounted price further spooked investors, and Q1 2026 results showed revenue declining 1.5% despite modest contract value growth.

Axe note: Gartner’s sharp decline warns of AI undercutting legacy advisory business, a cautionary tale for SA’s own research-dependent stocks.