One optical networking name is still proving it belongs in the AI data center buildout. The other two look much weaker: one animal-health company is losing pricing power and cutting guidance, while one satellite broadband story missed badly enough to raise fresh execution doubts. We’ll show you where conviction still belongs and where the market needs more.
A New Option Emerges (Sponsored)
One drug company is making nearly $1 billion a year treating a recurring heart condition with a weekly injection - and 82% of eligible patients still aren't on therapy.
Now a small biotech is developing an oral alternative. Its mid-stage trial already showed real, measurable results published in a top medical journal. And its late-stage trial is 75%+ enrolled at Cleveland Clinic, Mayo Clinic, and Mass General.
The market is proven. The unmet need is massive. And late-stage data could be months away.
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Futures at a Glance📈
Futures are slipping as traders wait for April’s inflation report and keep one eye on the latest U.S.-Iran tension. Stocks are still sitting near fresh highs, but hotter CPI or another oil spike could quickly test how much confidence this rally really has.
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What to Watch
Earnings (Premarket):
• Sea Limited [SE]
• JD.com, Inc. [JD]
• Qnity Electronics, Inc. [Q]
• Venture Global, Inc. [VG]
• On Holding AG [ONON]
• Madison Air Solutions Corporation [MAIR]
Earnings (Aftermarket):
• Franco-Nevada Corporation [FNV]
• Nextpower Inc. [NXT]
Economic Reports:
• NFIB optimism index (April): 6:00 am
• Consumer price index (April): 8:30 am
• CPI year over year: 8:30 am
• Core CPI (April): 8:30 am
• Core CPI year over year: 8:30 am
• Monthly U.S. federal budget (April): 2:00 pm
Elite Trade Club Insider
One IPO Drew $11 Million In Insider Buying
Five insiders at a newly public medical device company bought roughly $11.0 million worth of stock at the IPO price, even as executives at another biotech sold more than $2.5 million near its 52-week high.
You see this as two healthcare filings. Insider readers will see the difference between insiders backing a fresh listing and insiders taking cash before major trial data hits.
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Optical Infrastructure
Coherent Keeps Proving It Belongs Near the Center of the AI Data Center Buildout
Coherent Corp (NYSE: COHR) is still getting rewarded because the market sees it as one of the cleaner optical infrastructure winners in the AI cycle. Stifel kept a Buy rating on the stock and raised its price target to $412, up sharply from the prior target, citing stronger hyperscaler capex and better visibility across AI data center demand.
The real appeal is Coherent’s position in upstream optical components. The company supplies key laser technologies, including InP and EML lasers used in 800G and 1.6T transceivers.
As AI clusters get larger and data center bandwidth requirements keep rising, those components become more important. Stifel also pointed to order visibility extending from roughly 12 months to 18 months, which gives the bull case more support than a simple momentum chart.
The stock has already had a massive move, up more than 388% over the past year and sitting near a fresh 52-week high. It is not cheap at roughly 189x earnings, but this is one of the rare expensive stocks where the operating backdrop still looks strong enough to defend the premium.
My Take For You: Coherent is not just riding the AI trade. It is supplying a critical part of the network layer that lets AI data centers scale.
My Verdict: Buy this. The risk is that the stock’s huge run leaves it vulnerable if hyperscaler optical orders slow or margins disappoint.
Animal Health
Zoetis Has a Pet-Care Problem the Market Is No Longer Ignoring
Zoetis Inc (NYSE: ZTS) just gave investors a clear warning that the animal-health slowdown is real. The company trimmed its 2026 revenue forecast to $9.68 billion to $9.96 billion, down from $9.83 billion to $10.03 billion, and lowered adjusted EPS guidance to $6.85 to $7.00 from $7.00 to $7.10. That kind of cut is a problem for a company investors used to treat as a steady premium-growth name.
The pressure is coming from the most important area of the business. U.S. companion-animal product sales fell 11%, with weaker demand in dermatology, Simparica Trio, and Librela.
Pet owners are pulling back on vet visits, competition is intensifying, and Zoetis is losing some of the pricing power that used to make the story so dependable. Management also cut its expected price contribution to 1% to 2%, down from 2% to 3%.
The stock is now down more than 52% over the past year and trades near a fresh low. At roughly 12.7x earnings, it looks cheap, but cheap is not enough when the core growth engine is slipping. International and livestock sales are holding up better, but they do not fix the U.S. pet-care problem overnight.
My Take For You: Zoetis is no longer a clean defensive growth story. The valuation is lower for a reason, and the company needs to prove companion-animal demand can stabilize.
My Verdict: Avoid this. The risk is that weak vet visits, lower pricing power, and tougher competition keep dragging guidance lower.
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Satellite Communications
AST SpaceMobile Needs Execution Now, Not More Storytelling
AST SpaceMobile Inc (NASDAQ: ASTS) gave the market a rough reminder that space-based broadband is still a hard business to execute. First-quarter EPS came in at -$0.66, far worse than the -$0.21 estimate, while revenue of $14.73 million missed the $37.48 million consensus by a wide margin.
That matters because this stock already trades on a big future. ASTS is up more than 200% over the past year, with a market cap around $32 billion, despite still being early in commercialization. Investors have been willing to pay for the long-term promise of direct-to-device satellite connectivity, but misses this large make the timeline feel less certain.
The bull case is still clear. If AST can build out the network, secure carrier relationships, and turn satellite coverage into recurring revenue, the opportunity is enormous. But the company now has to move from promise to proof. A revenue miss this big does not kill the story, but it does raise the bar for the next update.
My Take For You: AST SpaceMobile still has one of the more exciting long-term telecom stories, but the quarter did not support the current valuation. This is no longer a stock investors should buy on vision alone.
My Verdict: Avoid this for now. The risk is that more execution delays force the market to reprice the stock before the commercial model is proven.
Poll: What's your biggest concern for equity markets right now?
Movers and Shakers
PACS Group [PACS]: Premarket Move: +22%
PACS Group runs post-acute healthcare facilities, including skilled nursing operations. Shares are surging after the company beat Q1 estimates, raised its full-year EBITDA outlook, and approved a $250 million buyback.
Revenue rose 11% year over year, but the bigger story was adjusted EBITDA jumping nearly 75% as occupancy and skilled mix improved.
My Take: I like this move, and you can buy it here if you are comfortable chasing strength. PACS gave you a clean beat-and-raise setup with margin expansion and buyback support.
Super Group [SGHC]: Premarket Move: +8%
Super Group is the online betting and gaming company behind Betway. The stock is higher after record Q1 results, with revenue up 18%, adjusted EBITDA up 36%, and monthly active customers up 18%.
The company is also shifting to regional reporting, which should make its Africa and international growth story easier to track.
My Take: You can buy this breakout. SGHC is giving you real user growth, better margins, and a cleaner reporting structure, which makes the move look more durable than a one-day earnings pop.
Hims & Hers Health [HIMS]: Premarket Move: -15%
Hims & Hers is a digital health platform covering weight loss, sexual health, mental health, and dermatology. Shares are dropping after Q1 revenue missed and the company posted a surprise loss.
The pain came from its GLP-1 pivot, with write-downs, legal costs, and margin pressure hitting the quarter. Guidance was raised, but investors are focused on profitability right now.
My Take: Do not chase the dip yet. HIMS still has growth, but the GLP-1 transition has made the story too messy, and you are better off waiting for proof that the new model can actually protect margins.
Alternative Income Access (Sponsored)
A small biotech just passed 75% enrollment in a late-stage clinical trial at some of the top heart centers in the U.S. - Cleveland Clinic, Mayo Clinic, Mass General, and Columbia.
The company's drug already showed clear, measurable results in a mid-stage trial published in a leading medical journal. Now it's going after a recurring heart condition where the only approved treatment is a weekly injection expected to do nearly $950 million in sales this year - and 82% of patients still aren't being treated.
Wall Street already has two Buy ratings on the stock with price targets 3-4x the current share price.
Get the full report
This communication is a paid advertisement and is not editorial content, independent research, or an unbiased analysis. Read this disclosure in full before reading the article it accompanies.
Everything Else
💰 Seven companies have kept paying and raising dividends through every major crash since the dot com era and the full list is free for now.
🤖 Sutskever says he spent a year gathering evidence against Sam Altman, because the OpenAI drama apparently still has bonus episodes.
🧠 Nvidia CEO Jensen Huang is reportedly skipping Trump’s China trip, even as other tech bosses tag along for the corporate-diplomacy roadshow.
🔋 Panasonic sees a battery rebound ahead, which is a nice way of saying the EV pain needs an AI glow-up.
👟 On Holding beat expectations and kept growing fast in China, so the sneaker story still has some spring in its step. China growth is carrying weight here.
💼 CEO diplomacy is back, with Musk, Tim Cook and Larry Fink expected to join Trump’s Xi meeting.
That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.
Best Regards,
— Adam Garcia
Elite Trade Club
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