Rebel’s Edge Notes

Global equity indices are trading generally flat, with U.S. markets mixed as the Dow Jones and S&P 500 rise while the Nasdaq 100 declines. This divergence follows Wednesday’s mixed close, where the Dow gained on optimism surrounding a potential U.S.-Iran deal to reopen the Strait of Hormuz, which could ease geopolitical tensions affecting oil prices.

Prediction:

Confirm Aliens Exist? 

SOUN (SoundHound AI): SoundHound AI jumped sharply after delivering a strong second-quarter report, with revenue rising 45% year-over-year to $61.9 million (beating estimates) and a narrower-than-expected adjusted loss. The company also raised its full-year 2026 revenue guidance and highlighted momentum in its OASYS agentic AI platform, particularly in enterprise and automotive markets. High short interest (over 40% of the float) amplified the move through a short squeeze as traders covered positions on the better-than-feared results and optimistic commentary.

IOVA (Iovance Biotherapeutics) +42%: Iovance rose after reporting record second-quarter revenue of approximately $99 million, up 66% year-over-year, driven primarily by strong U.S. demand for its Amtagvi TIL therapy. Gross margin improved to 56%, and the company indicated it is reviewing its full-year 2026 revenue guidance of $350–370 million in light of the better-than-expected performance and ongoing demand trends. Positive pipeline updates, including Fast Track designation for another indication, further supported the constructive reaction.

DDOG (Datadog) -15%: Datadog dropped significantly even though it beat second-quarter estimates, with revenue of $1.12 billion (up 36%) and adjusted EPS of $0.65 both exceeding consensus, while also raising full-year guidance. The sell-off appeared driven by profit-taking after a massive year-to-date rally that had pushed the stock to record highs, combined with guidance that some investors viewed as not quite strong enough to justify the elevated valuation. High expectations and a crowded long position left the shares vulnerable to a “buy the rumor, sell the fact” reaction.

HUBS (HubSpot) -19%: HubSpot declined despite beating second-quarter expectations on both revenue ($912 million, up 20%) and adjusted EPS. The disappointment centered on softer-than-expected third-quarter and full-year revenue guidance, slower net customer additions, and concerns about growth deceleration amid a more cautious spending environment. Several analysts cut price targets or downgraded the stock (including a notable shift to Hold), amplifying the negative sentiment around the forward outlook.