Simone Rizzetto @SimoneRizzetto88: "📊 PORTFOLIO UPDATE: Earnings &..."

Italy

📊 PORTFOLIO UPDATE: Earnings & Pharma Merger Shocks 🚀 YTD +14.64%, July finished with +2.08%. August already positive. One week since the last update. Pharma got shaken by a surprise merger report. Earnings were mixed. 📌 AI and Semiconductors: Earnings Deliver ➤ $MSFT (Microsoft): Another very strong quarter. Revenue reached $90B, up 18%, while Azure growth accelerated to 43%, ahead of expectations. Microsoft Cloud revenue grew 27% to $59.3B and paid Microsoft 365 Copilot seats passed 30M. Management still says AI/cloud capacity is constrained through the rest of 2026. The key takeaway for me: AI demand is clearly translating into revenue, not just capex. ➤ $GOOGL (Alphabet Inc Class A): Revenue hit $119.8B, up 24%, with Google Cloud accelerating to 82% growth and $24.8B in revenue. AI is now a major driver of Cloud growth. The concern is spending, Alphabet raised 2026 capex expectations to around $195-$205B. Strong demand, but the market is increasingly focused on how quickly that spending turns into cash flow. ➤ $AAPL (Apple): Revenue came in at $109.4B, up 16%, with EPS of $2.02. iPhone, Mac and Services all grew, while Greater China also performed better than expected. Another strong quarter, although Services missed estimates and the stock initially reacted negatively. Apple remains less directly exposed to the AI infrastructure spending cycle, but the underlying business remains very strong. ➤ $GH (Guardant Health Inc): Guardant reported another strong quarter, with revenue growth continuing to be driven by Oncology and Shield. The company had already raised 2026 revenue guidance to $1.30-$1.32B after Q1, and the Shield launch continues to scale rapidly. This remains one of my favorite long-term healthcare growth stories. 📌 Pharma: AstraZeneca Merger Rumors and Pipeline Strength ➤ $AZN.L (AstraZeneca): Reports emerged August 3 that AstraZeneca is in talks with Bristol Myers Squibb on a potential $400B mega-merger. Shares dropped around 9%. Analysts are perplexed. Beyond merger noise, fundamentals are strong. Q2 revenue up 6%, core EPS up 21%, oncology revenue climbing 15%. Sone-Ve Phase III achieved statistically significant overall survival in gastric cancer, first CLDN18.2 ADC to deliver OS benefit. CARDIO-TTRansform heart drug trial failed, but CEO reaffirmed the $80B revenue target by 2030. Ultomiris missed its primary endpoint in adults, though pediatric data showed 87.2% survival. I view the merger rumor as short-term noise over a strong company. I highly doubt that regulator will allow this merge, especially on UK and EU side. Furthermore the are overlaps between the two companies and in such senario a merging is impossible unless BMY or AZN spin off part of the company to create a complementary entity. ➤ $BMY (Bristol-Myers Squibb Co): Bristol Myers had a strong Q2, with revenue around $13.0B and EPS of $5.93, both above expectations. The company continues to benefit from growth in its newer products, although the longer-term patent cliff remains a major issue. Ironically, BMY is now at the center of the AZN merger speculation. I don't see the deal as necessary for either company, but if it happens it would be one of the biggest pharma transactions ever. 📌 Healthcare Providers: ACA Headwinds and Earnings Disappointment ➤ $HCA (HCA Holdings Inc): Revenue of $20.23B beat with adjusted EPS of $7.59 versus $7.02. But guidance was cut, EPS trimmed to $28.70-$30.50 from $29.10-$31.50. ACA enrollment fell 13% YoY and nearly ALL departing patients are going uninsured, not shifting to other plans. This hit pre-tax income ~$400M in Q2. Surgical volumes down, inpatient -2.3%, outpatient -4.4%. The broader sector is affected, with Tenet and Community Health Systems reporting similar ACA declines. ➤ $TDOC (Teladoc Health Inc): Revenue of $606.9M missed estimates and fell 4% YoY. Q3 guidance of $569M-$609M landed well below consensus. Stock plunged ~26% to $6.68. BetterHelp revenue fell 12%, expected to drop 13%-19% for the year. Citi, 📌 Biotech: FTC Drama at Hims ➤ $HIMS (Hims & Hers Health Inc): The FTC sued on July 29 for allegedly sharing customer medical data with advertisers and using deceptive billing. Stock plunged ~13%. Hims vowed to "vigorously defend" the claims. The FDA peptide reclassification remains a major tailwind. Edmund Ingham upgraded to Buy. Revenue projected at $3.5B for 2026, with Eucalyptus adding $200M+ in 2H. 📌 UK Medical REITs: Strong Earnings ➤ $PHP.L (Primary Health Properties): H1 adjusted earnings jumped 109% to £98m following the Assura combination. EPS up 9%, EPRA cost ratio improved to 8.7%. Portfolio 99% occupied. £0.7bn private hospital joint venture announced. 30th consecutive year of dividend growth at 7.3p, ~7.6% yield. ⏳ Ahead Major earnings coming today. It will be another busy week. $SPX500 $NSDQ100

Not investment advice. The author may have financial interests in the mentioned instruments.