Kim Bolton’s Top Picks for July 6, 2026
Kim Bolton, President and Portfolio Manager, Black Swan Dexteritas
Focus: Technology stocks
MARKET OUTLOOK:
Global financial markets delivered mixed performance in June, trading within a wide and volatile intramonth range as investors positioned for the record initial public offering (IPO) of SpaceX and other offerings expected through midyear. Global equity markets also posted mixed results, as technology and sectors related to artificial intelligence (AI) oscillated between risk-on and risk-off sentiment, while also responding favourably to falling oil prices and positive developments in the Iran military conflict.
Short-duration interest rates rose, while longer dated maturities were little changed, as inflationary pressures remained a key focus for investors. Edge AI marks the next phase of artificial intelligence deployment: moving intelligence from centralized cloud data centres into devices, machines, vehicles, factories, stores, hospitals, and cities.
From an AI and machine-learning perspective, the opportunity is structured across three layers: Hardware, where specialized chips, sensors, and embedded compute enable local inference; software, where lightweight models, orchestration tools, and development frameworks allow AI to run efficiently outside the data centre; and end-users, where vertical adopters turn real-time AI into measurable productivity, safety, cost, and customer-experience gains.
The core investor question is not simply who is building AI models, but who enables AI to operate where data is created, and decisions must be made instantly.
TOP PICKS:
ServiceNow (NOW NYSE)
ServiceNow Inc. is a leading enterprise software company that provides a cloud-based AI platform to help organizations automate and streamline digital workflows.
Products and markets:
- Offers the ServiceNow AI platform for business transformation and automated workflows.
- Serves diverse industries including health care, finance, manufacturing, government, and telecommunications.
- Key product areas include IT service management (ITSM), customer relationship management (CRM), and human resources.
Latest news:
- Launched the ServiceNow AI Control Tower to govern and secure AI agents and workflows.
- Acquired Armis to enhance asset visibility and cybersecurity risk management.
- Partnered with companies like Nvidia, Google Cloud, and OpenAI to accelerate enterprise AI innovation.
Financial update:
- Total revenues in the first quarter (Q1) of 2026 reached US$3.77 billion, representing 22 per cent year-over-year growth.
- Subscription revenues were US$3.67 billion, up 22 per cent year-over-year.
- Reported Q1 2026 earnings per share (EPS) of US$0.97, beating analyst expectations.
- Next earnings release: July 22, 2026.
- 30 days performance: -9.82 per cent.
- 100 days performance: 3.16 per cent.
- Buy one-third of a position here at approximately US$106.32 add at approximately US$101.00 and approximately US$95.69.
Siemens AG (SIEGY US)
Siemens AG is a German multinational technology company and Europe’s largest engineering firm, specializing in industrial automation, infrastructure, transport, and healthcare.
Products and the markets:
- Global leader in industrial AI, automation software, and building technologies.
- Leading provider of rail transport solutions including high-speed trains and transit cars.
- Operates Siemens Healthineers, a major player in medical technology and imaging.
Latest news:
- Completed the acquisition of Dotmatics in May 2026.
- Announced a €1 billion investment in AI over the next three years to solidify its market position.
- Released the second quarter of fiscal year 2026 results on May 13, 2026, showing continued strategy execution.
Financial update:
- For first quarter of fiscal year 2026, Siemens reported group orders of €21.4 billion (up 10 per cent year-over-year) and revenue growth of eight per cent.
- Increased its full-year EPS guidance following strong first-quarter performance.
- Maintained a strong capital position with total assets of €147.8 billion as of 2024.
- Next earnings release: August 6, 2026 (Q3 FY2026)
- 30 days performance: -0.82 per cent.
- 100 days performance: 29.35 per cent.
- Buy one-third of a position here at approximately US$158.13 add at approximately US$150.22 and approximately US$142.32
Datadog (DDOG NASDAQ)
Datadog, Inc. is an American company that provides a cloud-scale observability and security platform for developers, IT operations teams, and business users.
Products and the markets:
- Offers a comprehensive SaaS platform for infrastructure monitoring, application performance monitoring, and log management.
- Provides cloud security, digital experience monitoring, and network monitoring solutions.
- Serves a global market across all industries, helping organizations monitor cloud-scale applications and infrastructure.
Latest news:
- Achieved FedRAMP High Authorization for Datadog for Government.
- Launched new GPU monitoring capabilities to help businesses optimize AI project performance and spend-
- Announced plans to launch a new data centre in the U.K. to support cloud adoption in regulated industries.
Financial update:
- In first quarter of fiscal year 2026 (ended March 31, 2026), Datadog reported revenue of US$1.01 billion, an increase of 32 per cent year-over-year.
- Non-GAAP net income per diluted share was US$0.60, exceeding the consensus estimate of US$0.51.
- GAAP operating income was US$31 million, while non-GAAP operating income reached US$250 million
- For second quarter of fiscal year 2026, the company expects revenue between US$1.03 billion and US$1.04 billion and non-GAAP EPS of US$0.57 to US$0.59.
- Next earnings release: August 6, 2026 (Q2 FY2026).
- 30 days performance: 4.01 per cent.
- 100 days performance: 111.18 per cent.
- Buy one-third of a position here at approximately US$260.36 add at approximately US$247.34 and approximately US$234.32.
