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| Monday's Markets | |
|---|---|
| S&P 500 6,330 (+1.47%) |
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| Nasdaq 21,054 (+1.95%) |
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| Dow 44,174 (+1.23%) |
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| Bitcoin 114,747 (+0.48%) |
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MercadoLibre (NASDAQ:MELI) and Axon Enterprise (NASDAQ:AXON), both introduced to the Fooliverse as Rule Breakers recommendations, posted second-quarter results after yesterday's closing bell. Axon stock gained over 6% pre-market, with MercadoLibre down more than 5%.
- Biggest in Latin America by market cap: MercadoLibre missed analyst expectations for net income, down 1.5% year over year to $523 million, as more generous free shipping led to a lower EBIT margin of 12.2%, from 14.3% a year prior.
- FY revenue guidance lifted to $2.65 billion to $2.73 billion: Axon, meanwhile, posted a 33% year-over-year rise in Q2 revenue to $669 million, thanks to growing demand for software services, TASER, and body camera technology.
Concern is growing among market commentators that we could be in for a correction, as stocks have soared in 2025 despite souring economic indicators – the latest inflation and job growth prints both disappointed amid trade war concerns.
- S&P 500 14-day relative strength index touches 76: On that metric, stocks are more expensive than they've been since just before last summer's peak. Over 70 is often seen as overheated.
- "We're buyers of dips": Mike Wilson, strategist at Morgan Stanley (NYSE:MS), said he expects a "modest pullback in the third quarter" of up to 10%, but is still upbeat on long-term earnings strength. Evercore's (NYSE:EVR) Julian Emanuel fears a dip of up to 15%.
Vertex Pharmaceuticals (NASDAQ:VRTX) posted adjusted Q2 earnings of $4.52 per share yesterday, ahead of estimates. But the stock fell 14% overnight as the biotech company reported disappointing Phase 2 results for pain drug VX-993 and will not move it further.
- Down 12% after hours: Hidden Gems rec Kyndryl Holdings (NYSE:KD) posted $3.74 billion Q2 revenue after market close, short of analysts' estimated $3.80 billion, with sales for the IT services company flat year over year.
- Superscore of 76 in Moneyball rankings: Hims & Hers (NYSE:HIMS) missed on revenue, even with a 73% year-over-year rise to $544.8 million. EBITDA of $82.2 million soared above $39.3 million this time last year, but the stock fell 15% after hours.
Advanced Micro Devices (NASDAQ:AMD) stock is up 46% year to date following Q1 revenue and earnings beats. Watch for news on the latest Instinct MI350 series of AI chips, designed to compete with Nvidia (NASDAQ:NVDA).
- Optimized for hyperscale cloud networks: Arista Networks (NYSE:ANET) is a preferred network switch supplier for AI giants like Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META). The company expects a 24% revenue rise year over year in the quarter.
- Beaten earnings estimates in the past four quarters: Chronic disease management specialist Amgen (NASDAQ:AMGN) saw a performance upturn in Q1 on the back of strong global demand, with Wall Street expecting $5.28 per share from $8.91 billion revenue this time.
Which of the following Foolish stocks, all down over 30% since being recommended in Stock Advisor over the past 2 years, has the best chance of recovering and beating the market over the next 5 years: Lululemon (NASDAQ:LULU), Novo Nordisk (NYSE:NVO), Atlassian (NASDAQ:TEAM), or e.l.f. Beauty (NYSE:ELF)? Debate with friends and family, or become a member to hear what your fellow Fools are saying.
