KARO

Zacks recommends Karooooo Ltd. (KARO) as a top growth stock, citing its strong earnings growth of 30.7% (above industry average of 26.9%), robust cash flow growth of 24.1% (vs. industry average of 8.4%), and positive earnings estimate revisions. The company holds a Zacks Rank #2 (Buy) and Growth Score of B, positioning it well for outperformance among growth investors.

Karooooo reported accelerating Cartrack subscription revenue growth to 23% in Q2 FY2027, driven by successful sales force investments and record net subscriber additions of 94,516. Management highlighted three key strategies: prioritizing unit economics over short-term accounting margins, building hardware inventory to protect against inflation, and cross-selling add-on products to existing customers. The company maintains strong fundamentals with 95% customer retention and expects continued acceleration in FY2027.

Amazon released TorchNeuron, an open-source software tool that allows PyTorch code to run on AWS Trainium chips with minimal changes, challenging Nvidia's market dominance. Amazon stock surged 5% on the announcement.

Meanwhile, Karooooo's shares fell 8% despite strong subscriber growth due to lower-than-expected earnings and unchanged guidance. Netflix and SpaceX are set to report earnings, with Netflix focusing on ad revenue growth and SpaceX on AI spending efficiency. MercadoLibre continues expanding in Latin America with heavy investments in shipping and payments.