The Motley Fool podcast discusses the impact of federal agency restructuring on biotech and healthcare innovation. They also profile three stocks with Rule Breaking potential despite past setbacks and play a game highlighting three stocks in their database. For more investing tips and stock recommendations, check out their podcast center and top 10 list of stocks to buy.
The Motley Fool Stock Advisor team revealed the 10 best stocks to invest $1,000 in right now, but The Trade Desk wasn’t on the list. However, their top 10 picks historically outperformed the S&P 500, with returns like $669,449 from investing in Netflix in 2004. Join Stock Advisor for access to their latest stock recommendations.
The podcast delves into the consequences of federal layoffs on biotech companies, particularly FDA’s limitations during the government shutdown. While FDA is mostly funded by user fees, new applications requiring payment are on hold. NIH budget cuts impact research funding, affecting innovation at the top of the funnel. House and Senate aim to restore NIH funding in their budgets, mitigating potential disruptions. Emerging biotechs may face short-term disruptions due to administration policies, but long-term interest remains strong. The expectation is that radical moves will be reversed, leading to potential approval delays. Despite challenges, investing in emergent science biotechs is still recommended for market success.
The Trade Desk, a programmatic advertising leader, has seen a significant decline in stock price, falling 63% from its peak. Concerns over AI deployment and competition, particularly in connected TV advertising, have impacted revenue growth. However, with a $935 billion market opportunity, the Trade Desk may be a contrarian buy at less than 25 times forward earnings.
Bristol Myers Squibb, a 100-year-old drug company that acquired Celgene, is considered a broken breaker due to ongoing struggles. Despite challenges, there is renewed belief in the company based on valuation arguments. The company’s history and acquisition of Celgene have influenced its current standing in the market. Eliquis is facing a patent cliff, but Bristol Myers Squibb is still paying a dividend with a 5.6% yield. The company is innovating with new drugs to offset declines in legacy drugs. There’s potential for price appreciation once growth returns.
Progyny (PGNY) has seen a 41% decline in stock price but is growing in importance in the healthcare market. Revenue is up 9.5% with gross profit increasing 16%. The company serves self-insured companies and has expanded its client base to 542, covering 6.75 million individuals.
Progyny’s services for infertility and menopause are well-received, showing clinically better results. The company’s focus on helping couples start families has led to strong initial reception for their menopause support program. Progyny is expanding its services, with 20% of existing clients and 40% of new clients considering menopause support. Company leaders have been buying shares, not selling, showing confidence. Concerns about the healthcare market’s impact on self-insured companies remain. As couples delay starting families, Progyny’s fertility and surrogacy services are expected to grow in demand.
Argenx, a biopharmaceutical company, is experiencing significant sales growth, with Vyvgart sales jumping 97% to 949 million in the second quarter. The drug is positioned to capture a 50% market share in CIDP. However, competition is fierce, and regulatory challenges may impact sales growth.
Celsius, a leader in the functional beverage market, has seen substantial growth and expanded its footprint through acquisitions and partnerships. The PepsiCo deal increased distribution opportunities, leading to international market penetration. Concerns about cannibalization of brands and market volatility exist, with US revenue plunging 33% year-over-year. Salesforce is soaring with over 12,500 agent force deals closed, generating more than 6,000 paid deals. Q2 fiscal 2026 shows a raised full-year revenue guidance of over $41 billion, with improved operating margins and solid cash flow growth. However, job cuts in 2025 and hiring pauses indicate underlying struggles despite decades of consistent growth.
Salesforce’s track record of smart acquisitions has bolstered its ecosystem, but the premium it’s currently trading at may be challenging to justify as AI hype wanes. Despite annual double-digit growth in sales for decades, revenue only rose at a single-digit rate in fiscal 2025. Share your thoughts on the Yes And game and Rule Breaker Investing with Rick, Karl, and Tim.
Personal finance content on Motley Fool follows editorial standards and is not influenced by advertisers. Check out the full advertising disclosure in the show notes. Tune in for more Rule Breaker content with Emily tomorrow. Karl Thiel holds positions in Bristol Myers Squibb and The Trade Desk, Rick Munarriz in Celsius and The Trade Desk, and Tim Beyers in Amazon, Progyny, and Salesforce. The Motley Fool recommends and has positions in various companies.
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