Market Movers: Winners and Losers
Obesity Drugs: A New Challenger Emerges
Eli Lilly’s Zepbound has stolen the spotlight with its impressive 20% average weight loss in a 72-week trial, outshining Novo Nordisk’s Wegovy, which achieved around 14% weight loss. While Lilly’s capacity to meet demand is still a concern, this breakthrough could mark a significant shift in the obesity drug market.
Salesforce Unleashes AI Power
Salesforce has launched Agentforce, its innovative AI tools platform, and introduced the concept of a digital workforce for sales. CEO Marc Benioff took a swipe at Microsoft’s Copilot, calling it irrelevant. With its strong earnings report, Salesforce has raised the bar, and we’ve increased our price target on this longtime holding.
Semiconductor Success
Marvell Technology shares have surged over 13% after its impressive earnings report. The company’s collaboration with Nvidia, Amazon Web Services, Alphabet’s Google, and Microsoft has positioned it as a leader in data center technology and custom silicon. With AI revenue forecasts exceeding expectations, Marvell is on a roll.
Storage and Security: A Tale of Two Companies
Pure Storage has seen its shares soar over 20% after announcing a contract with a top AI hyperscaler and delivering blowout quarterly results. Meanwhile, cloud security firm Zscaler fell short with disappointing numbers. Okta, on the other hand, has beaten estimates with its quarterly earnings and revenue, sending its stock up roughly 13%.
Automotive and Retail: Challenges Ahead
General Motors is facing a significant impact from restructuring its joint venture in China, with a write-down of between $2.6 billion and $2.9 billion. Foot Locker’s reported quarter missed estimates, with CEO Mary Dillon citing “softness” at Nike. Goldman Sachs sees mixed demand at Tesla, with delivery growth goals for 2024 running short.
Palantir and Dollar Tree: Bright Spots
Palantir has been granted authorization to offer its products across the federal government, sending its stock up nearly 1%. Dollar Tree reported quarterly beats on earnings and revenue, with sales at its namesake chain and Family Dollar rising 1.8% and 1.9%, respectively.
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