1. The Masses Sold – but Bloom Energy Only Got Better

— DAVID MEIER • TEAM RULE BREAKERS

Fuel cell maker Bloom Energy entered the Supernova Odyssey portfolio in December, just as it was becoming a critical supplier of power generation to the data center buildout. Following a drawdown from its November 2025 high, the stock looked "reasonable" to us at about 10 times forward sales. What we didn't expect was how fast it would take off – running up to $345 per share near the end of June before getting more than cut in half, as the market soured on tech hardware and infrastructure tied to chips, memory, and power generation.

So how is this investment doing? Still just under a double: It's no fun going through a big drawdown, especially after such a big run-up. But our scorecard shows the stock is still just under a double from where we started, so we think it's still doing well.
But that's not the only way we evaluate it: As Rule Breakers, we look closely at the strength of the business and its prospects. Coming out of its Q2 earnings report, Bloom is actually a stronger, healthier company than it was in December – demand is growing, revenue growth is accelerating, margins are expanding, and cash is flowing in. And with the stock trading for just under 10 times forward sales, it's a great time to look at adding to our position.

Image shows chart of Bristol Myers-Squibb's and AstraZeneca's revenue over the past 5 years

2. Report: BMY and AZN in Merger Discussions

Bristol Myers Squibb is in talks to combine with the U.K.’s AstraZeneca, reports the Financial Times, in a move that would be among the healthcare sector’s largest ever transactions. AstraZeneca fell around 6% in pre-market trading in response, as Bristol Myers Squibb gained close to 6%.

Combined market value close to $400 billion: A deal would create one of the world’s biggest pharmaceutical companies, though that says nothing yet about the potential earnings power of the combined entity should the deal – which is reportedly still in its early stages – happen. Big-pharma megamergers live or die on integration and synergy delivery, which take years to prove.
Structure, not size, tells the story: As well as the details of any deal structure, investors should watch for the actual rationale management gives for the benefits of a merger – overlapping pipelines could mean real synergies, for example. Watch the deal structure (cash vs. stock, premium paid) and whether the strategic logic is ‘pipeline complementarity’ or defensive bulk; those determine whether value is created or transferred to Bristol Myers Squibb shareholders. Signals from regulatory authorities would also be important, especially if they call for any divestitures.

3. Stocks Rebound, Yen Holds Ground, Jobs Come Round

The Nasdaq put in a positive week last week after a decline over the past month, with the tech index up 1.59% while the S&P 500 gained 1.05%. Another pause in the on-again/off-again conflict between the U.S. and Iran saw S&P 500 futures edge up around 0.6% in early trading, while Nasdaq futures rose above 0.8%.

U.S., Japan, prop up yen: The two countries confirmed they intervened last week to halt the slide in the yen as it weakened past ¥163 per dollar, its lowest in about 40 years. It strengthened to ¥163 per dollar this morning, as Treasury Secretary Scott Bessent and Japan’s Ministry of Finance said they won’t hesitate to intervene again if needed. The 40-year low signals real stress in the rate/currency regime, and the durable question is whether this is a temporary floor or the leading edge of a BOJ policy pivot.
July jobs print coming Friday: Economists are expecting around 85,000 jobs added in July, following June’s disappointing total of just 57,000. The unemployment rate is expected to rise to 4.3%, from 4.2%. Watch the revision trend and the unemployment rate as the cleaner read on labor softening — don't react to a single beat or miss.

4. Key Q2 Results Due From Recs by Both Team HG & RB

Arista Networks will report second-quarter results after Tuesday’s market close, following a 35% revenue increase year over year (YoY) in Q1 – though its gross margin did decline slightly. Management expects around $2.8 billion revenue in Q2, and investors should watch the effects of component costs. News of the planned addition of one or two major customers, each representing about 10% of total revenue, could be key.
Shopify, beating the S&P 500 by 47% since June 2024’s Stock Advisor rec by Team Hidden Gems, reports Wednesday morning. Revenue and gross merchandise volume growth hit multi-year highs in the first quarter, yet the stock is down 27% year to date. The company’s increasing spending on AI infrastructure contributed to expectations for high-20% range revenue growth this time, down from Q1’s 34%. Conversion of AI activity into revenue is something to watch for.
The Trade Desk is due to post its latest update Thursday afternoon, after the stock collapsed through the first half following a dispute with an ad agency and a leadership shake-up. The company now needs to get growth back on track, as it attempts to rebuild trust with advertisers and agencies. Key things for investors to watch include competition from Amazon’s ad platform, and progress with TTD’s AI tools and streaming-TV partnerships.

5. Our Pick of the Rest of the Week’s Earnings from Team RB Recs

Vertex Pharmaceuticals releases results after today’s closing bell. Management has set a goal of at least $500 million in non-cystic fibrosis revenue for the full year, and progress this quarter should be a highlight. Approvals for core medicines for children aged one to five are also being sought. Investors should keep an eye out for rising operating costs, though cash reserves are high at $13 billion.
Advanced Micro Devices reports Tuesday afternoon, as operating costs are rising on the back of spending on the company’s AI product roadmap. Management expects revenue to reach approximately $11.2 billion in the quarter, for a 46% rise over the same period last year. Watch out for news of AMD’s sixth-generation EPYC server and data center processor, dubbed Venice, due for launch later this year.
MercadoLibre, a 2026-2027 Foundational Stock in Rule Breakers, reveals its latest after Wednesday’s close. Often called the “Amazon of Latin America," MELI reported a 49% jump in revenue YoY in its previous quarter – but it came at the cost of pressure on profitability as the company invests heavily in its Latin American e-commerce and fintech operations. Earnings per share dipped 15.5% in the period. But management emphasizes its long-term focus, even if it leads to short-term margin squeezes.

6. Today’s Take: Tech Company or Tech Consumer?

All companies are tech companies these days (or better be). Especially with the incredible innovations in AI. In a bone fide tech company, the technology is the product. Shopify sells software, tools, and services. Its margin comes from that product. In a company that uses technology well, the tech is a tool that makes the core business run better. Starbucks built a great app, but I'm still buying coffee, and the margin comes mostly from hot water run through beans. Both types of companies can be great investments. Investors just have to understand where the product loyalty, pricing power and scale comes from. And what multiple we’re willing to pay.

— ANDY CROSS, MOTLEY FOOL CIO

7. Your Take

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