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2026-10-08 18:34 • The Motley Fool Negative Axe Cap view: Selective

Alphabet will pay SpaceX $920 million monthly for compute capacity in a deal potentially worth $29 billion over 32 months. However, the article warns investors that SpaceX's AI revenue lacks durability due to 90-day termination clauses, Alphabet's temporary 'bridging strategy' while building internal capacity, and the risk that current high pricing ($30-50 per watt) won't sustain once supply constraints ease. SpaceX must prove competitive advantages in a less constrained market.

Axe note: SpaceX’s $29 billion deal with Google looks big but carries big risks given its temporary nature and pricing pressures.

2026-10-08 18:10 • The Motley Fool Neutral Axe Cap view: Selective

Third-quarter earnings season begins the week of October 12, with S&P 500 companies expected to post 29.5% year-over-year earnings growth—the third consecutive quarter above 25%. Earnings estimates have been revised upward throughout the quarter, and all 11 sectors are projected to show growth, with five sectors (energy, IT, communications, materials, and industrials) expected to post double-digit gains. Strong earnings typically support higher stock prices.

Axe note: Strong US earnings could stabilize global sentiment, with nuanced implications for the JSE and USD/ZAR.

2026-10-08 18:09 • The Motley Fool Neutral Axe Cap view: Selective

Reports suggest Starbucks is exploring a potential acquisition of Chipotle, which would create a massive restaurant megadeal. While CEO Brian Niccol's track record at Chipotle is impressive, analysts are divided on synergies, and history shows such large mergers often fail. The author recommends caution, believing Niccol should focus on Starbucks' ongoing turnaround rather than pursue this risky acquisition.

Axe note: Starbucks may acquire Chipotle, but big restaurant deals often stumble—caution advised.