hapabapa/iStock Editorial via Getty Images 2026 has been a surprisingly volatile year for high-flying growth stocks, with investors now treating AI as a net risk rather than a tailwind. The S&P 500 has managed to cling close to all-time highs, but that has been buoyed by traditional companies in the energy and materials sectors. Many software and internet companies, meanwhile, are in deep bear mar...
hapabapa/iStock Editorial via Getty Images 2026 has been a surprisingly volatile year for high-flying growth stocks, with investors now treating AI as a net risk rather than a tailwind. The S&P 500 has managed to cling close to all-time highs, but that has been buoyed by traditional companies in the energy and materials sectors. Many software and internet companies, meanwhile, are in deep bear market territory. While I certainly agree that Reddit ( RDDT ) had some valuation premium that it needed to burn, we have to ask ourselves now: with Reddit down nearly 40% since the start of January alone, at what point can we declare that the stock is oversold? The company also just released incredibly strong Q4 results that featured not only acceleration in revenue but also a continued pickup in U.S. users; nevertheless, shares remain stubbornly in correction territory. Data by YCharts I last wrote a buy rating on Reddit in November , when the stock was trading just under $210 per share. Reddit's fall to the $150s doesn't faze me; in fact, it's a fantastic opportunity for me to add to my position and dollar-cost average my cost basis downward. The company has continued to make terrific product improvements that are clearly having an impact on not only user acquisition but also boosted engagement as well. I'm reiterating my buy rating here and encouraging investors to add on this dip. The first catalyst that investors should be aware of is the fact that Reddit is making consistent product improvements that are yielding strong results. In the fourth quarter, Reddit revamped its platform to make it more search-forward. In the age of AI chatbots, users are now becoming used to beginning all of their web experiences with a search query. A platform's ability to serve the user with relevant content is the prime test of whether that user will be retained. Reddit product updates (Reddit Q4 shareholder letter) Other updates are aimed at improving the Reddit experience. The company is ...
Lucid (NASDAQ: LCID) stock is down 90% over the past three years, as the electric vehicle market has come under immense pressure from slowing sales and the company's own financial hurdles. As of this writing, its shares are trading for just under $10. If you're hoping to scoop up Lucid stock in the hopes that it'll rebound, I understand the temptation. But it's probably not a good idea. Image sour...
Lucid (NASDAQ: LCID) stock is down 90% over the past three years, as the electric vehicle market has come under immense pressure from slowing sales and the company's own financial hurdles. As of this writing, its shares are trading for just under $10. If you're hoping to scoop up Lucid stock in the hopes that it'll rebound, I understand the temptation. But it's probably not a good idea. Image source: Lucid. Continue reading
From a satellite ground station in Namibia to an Egyptian laboratory in orbit, China has been building the hi-tech backbone of Africa’s space ambitions. Earlier this month, Beijing handed over a new satellite data ground station near Windhoek, Namibia – the latest in a growing network of space facilities across the continent built by China or with Chinese funding. The China-funded ground station a...
From a satellite ground station in Namibia to an Egyptian laboratory in orbit, China has been building the hi-tech backbone of Africa’s space ambitions. Earlier this month, Beijing handed over a new satellite data ground station near Windhoek, Namibia – the latest in a growing network of space facilities across the continent built by China or with Chinese funding. The China-funded ground station at Windhoek’s Telecom Earth Station enables Namibia to process remote-sensing data from satellites,...
Finance Minister Enoch Godongwana will this week outline improvements in South Africa’s public finances that pave the way for a sovereign credit-rating outlook upgrade, a Bloomberg survey shows. Six of the nine economists canvassed — including those at Bank of America Corp. and Morgan Stanley — expect Fitch Ratings to revise its outlook to positive at its next review. Four predict a similar move b...
Finance Minister Enoch Godongwana will this week outline improvements in South Africa’s public finances that pave the way for a sovereign credit-rating outlook upgrade, a Bloomberg survey shows. Six of the nine economists canvassed — including those at Bank of America Corp. and Morgan Stanley — expect Fitch Ratings to revise its outlook to positive at its next review. Four predict a similar move by Moody’s Ratings. Standard Chartered Plc, which responded after the survey closed, expects both Fitch and Moody’s to shift to a positive outlook. An outlook change is long overdue, after S&P Global Ratings in November upgraded the country’s credit rating to BB — two steps below investment grade — with a positive outlook, Razia Khan , Standard Chartered’s chief economist for Africa and the Middle East, said. “You can’t ignore the positives in South Africa,” Khan said in an interview on Friday. “We’re likely to see confirmation of the fiscal progress and there’s every possibility that revenue will outperform,” buoyed by booming gold and other precious-metal prices, she said. When Godongwana delivers his budget at 2 p.m. in Cape Town on Wednesday, he’s expected to announce that the National Treasury will beat its consolidated fiscal deficit forecast of 4.7% of gross domestic product for 2025–26, with economists projecting a shortfall of 4.4%. They also expect the Treasury to meet its target of stabilizing debt this fiscal year. “Sure, they could hang on to the fact that growth has been very slow to turn around, but I’m not sure anyone really has reason to think it’s going to remain persistently weak,” Khan said. Economists in a different poll forecast South Africa’s economy will grow 1.6% this year and 1.3% in 2025, after stagnating for more than a decade. IMF Encourages South Africa to Adopt Fiscal Rule to Curb Debt Morgan Stanley Sees South African Budget Extending Bond Surge Goldman Sees South Africa Beating Its Primary Surplus Target Fitch rates South Africa’s long-term f...
AWS Engineers Allowed An AI Tool to Act...Then The Cloud Unit Went Down Amazon’s cloud arm has experienced two recent service disruptions tied to the use of its own AI-powered coding systems, stirring debate inside the company over how quickly such tools should be rolled out, according to FT . One incident in mid-December led to a 13-hour interruption affecting a tool customers use to analyse AWS ...
AWS Engineers Allowed An AI Tool to Act...Then The Cloud Unit Went Down Amazon’s cloud arm has experienced two recent service disruptions tied to the use of its own AI-powered coding systems, stirring debate inside the company over how quickly such tools should be rolled out, according to FT . One incident in mid-December led to a 13-hour interruption affecting a tool customers use to analyse AWS spending. Engineers had permitted the Kiro coding assistant to implement changes, and the system determined the fix was to “delete and recreate the environment.” An internal review later characterized the episode as an “outage.” Staff familiar with the events said it marked the second time in a matter of months that an AI tool played a central role in a production issue. “We’ve already seen at least two production outages [in the past few months],” said one senior AWS employee. “The engineers let the AI [agent] resolve an issue without intervention. The outages were small but entirely foreseeable.” AWS, which accounts for the majority of Amazon’s operating income, is investing heavily in AI systems that can act independently on human instructions and hopes to market them to customers. The episodes have highlighted the potential downsides of granting such tools significant autonomy. FT writes that Amazon pushed back on suggestions that the technology was to blame, describing it as a “coincidence that AI tools were involved” and arguing that “the same issue could occur with any developer tool or manual action.” The company added: “In both instances, this was user error, not AI error,” and said it had found no indication that AI increases the likelihood of mistakes. According to Amazon, the December event was an “extremely limited event” affecting a single service in parts of mainland China, while the other disruption did not touch any “customer facing AWS service.” Both were far smaller than a separate 15-hour AWS outage in October 2025 that disrupted customers including Open...