The Best Buying Opportunity in Months Might Be Hiding in Plain Sight
2026-07-20 18:01
•Neil Rozenbaum •The Motley Fool
•• •••• Axe Capital view
Tech Sell-Off Hides Value for JSE Investors
Sharp falls in big US tech names like Netflix offer a chance for local investors to think about their portfolios.
Netflix’s stock has dropped nearly 50% in a year, with a recent earnings miss pushing it even lower. While it’s tempting to write the company off, this bloodbath has ripples for South African investors too. Prosus, which holds a large Netflix stake, has seen pressure because of this link. For us, this means Prosus looks more like a value play right now, given the steep discount and its diversified internet portfolio. Meanwhile, Meta’s ongoing recovery suggests that some tech giants can bounce back stronger, implying selective stock picking is smarter than blanket selling. Watch how the USD/ZAR reacts in the short-term; a weaker rand could cushion some imported tech costs but also add inflationary pressure locally. The risk? That Netflix's issues signal wider consumer weakness globally, which could pull down local stocks like Prosus further. Still, at these prices, patience with high-quality tech exposure on the JSE might pay off. this is just my opinion and not financial advice
I would watch Prosus closely and consider adding on dips if they hold near current levels; avoid Netflix directly while it shakes out. Keep an eye on USD/ZAR for clues on local tech costs and inflation dynamics.
- Prosus
- Netflix
- USD/ZAR
- Netflix’s earnings troubles spread to broader tech sentiment
- Rand volatility worsening inflation and corporate costs
6/10
Following recent market volatility and a rough stretch, the article highlights emerging buying opportunities in the market. The piece discusses Netflix's recent earnings report and stock decline, while also mentioning other tech stocks as potential investment opportunities during this market dip.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Neil Rozenbaum
Categories: Equities, Earnings
Tickers: NFLX, META, UBER, NBIS
Sentiment: Mixed - Netflix stock fell nearly 50% over the past year and experienced a post-earnings sell-off. Multiple articles reference the stock's decline and question whether it remains a buy despite the dip. Meta is mentioned as a stock with positions held by The Motley Fool and recommended by their services, suggesting confidence in the company despite broader market volatility.
Keywords: market volatility, buying opportunity, earnings report, stock decline, tech stocks, market dip
Insights:
- NFLX: Negative: Netflix stock fell nearly 50% over the past year and experienced a post-earnings sell-off. Multiple articles reference the stock's decline and question whether it remains a buy despite the dip.
- META: Positive: Meta is mentioned as a stock with positions held by The Motley Fool and recommended by their services, suggesting confidence in the company despite broader market volatility.
- UBER: Neutral: Uber is mentioned as a stock held by The Motley Fool but without specific commentary on its performance or outlook during the market volatility period.