markets

4/22/25

Novo Nordisk slumps following trial results for Eli Lilly’s weight-loss pill

Novo Nordisk, the Danish maker of Ozempic and Wegovy, fell almost 10% early on Tuesday — its first trading session since rival Eli Lilly unveiled strong trial results for its experimental weight-loss pill last week.

As the GLP-1 drug race moves toward easier-to-take oral treatments, Lilly’s new pill, taken once daily with no food or water restrictions, appears more convenient than Novo’s own oral GLP-1, while also delivering weight loss and blood sugar results that rival Novo’s wildly popular injectable, Ozempic.

Though Novo Nordisk got a brief boost last week after Pfizer scrapped a new obesity pill effort, Lilly’s latest entry is adding to the mounting pressure on the drugmaker. Just last month, a trial of Novo’s new weight-loss injectable disappointed investors — helping erase a third of its market value this year and leading it to cede its crown as Europe’s most valuable company.

Novo Nordisk Slides on Pressure From Lilly’s Pill Study

Novo Nordisk Slides on Pressure From Lilly’s Pill Study

As the GLP-1 drug race moves toward easier-to-take oral treatments, Lilly’s new pill, taken once daily with no food or water restrictions, appears more convenient than Novo’s own oral GLP-1, while also delivering weight loss and blood sugar results that rival Novo’s wildly popular injectable, Ozempic.

Though Novo Nordisk got a brief boost last week after Pfizer scrapped a new obesity pill effort, Lilly’s latest entry is adding to the mounting pressure on the drugmaker. Just last month, a trial of Novo’s new weight-loss injectable disappointed investors — helping erase a third of its market value this year and leading it to cede its crown as Europe’s most valuable company.

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Nia Warfield, Luke Kawa

S&P 500 posts fresh closing high as cyclicals shine

The first record close of the month for the benchmark US stock index.

Bull horns

markets

11h

Lululemon sinks after slashing full-year guidance as tariffs, sales weigh on margins

Lululemon shares sank 13% in after-hours trading Thursday after the yoga-wear retailer massively slashed its full-year outlook.

Adjusted earnings per share came in at $3.10 for the second quarter, versus Wall Street’s forecast of $2.86. Revenue landed at $2.5 billion, compared with analyst estimates of $2.54 billion.

The real problem: Lululemon heavily cut its full-year guidance, and is now projecting earnings of $12.77 to $12.97 per share, a steep drop from its prior forecast of $14.58 to $14.78, and well shy of Wall Street’s $14.40 estimate.

The retailer faced more margin pressure during the quarter, citing higher markdowns, tariffs, and other costs, though some of that was partially offset by higher pricing and lower product costs.

Lulu shares were down 45% year-to-date before the report.

markets

11h

Broadcom rallies after CEO says 2026 AI revenue outlook will “improve significantly” as the chip designer adds a new major customer

Broadcom is booming. The chip designer posted a small top and bottom line beat in its fiscal Q3, and the details and its guidance are even more encouraging.

Revenues: $15.95 billion (estimate $15.84 billion)

Adjusted diluted earnings per share: $1.69 (estimate $1.67)

Shares initially whipsawed in reaction to these numbers, but then rallied strongly after CEO Hock Tan said the outlook was for AI revenues to improve “significantly” in fiscal 2026 during the conference call with analysts thanks to the addition of a new big buyer.

“Last quarter, one of these prospects released production orders to Broadcom, and we have accordingly characterized them as a qualified customer for XPUs, and in fact, have secured over $10 billion of orders,” he said. “And reflecting this, we now expect the outlook for fiscal 2026 AI revenue to improve significantly from what we had indicated last quarter.”

Unlike Nvidia, whose data center business came in slightly shy of estimates in its most recent quarter, Broadcom’s AI sales managed to come in ahead of expectations, with $5.2 billion in revenues versus the anticipated $5.1 billion.

For the current quarter, management expects sales of $17.4 billion and adjusted EBITDA of approximately $11.67 billion. That compares to the Street’s view of $17.05 billion and adjusted EBITDA of $11.3 billion.

And again, its AI business is besting the sell side’s view, with an outlook for $6.2 billion in AI semiconductor revenues versus an expected $5.84 billion.

Shares were up more than 30% year to date heading into this report, slightly trailing Advanced Micro Devices but ahead of industry leader Nvidia.

Salesforce’s slump shows the market still thinks AI is coming for software. But what if it doesn’t?

There wasn’t much proof of disruption in Salesforce’s numbers. Meanwhile, it’s trading around its lowest price-to-earnings ratio ever.

Salesforce slump shows why the AI software trade remains interesting

markets

12h

Rivian lays off workers as it readies its cheaper SUV and braces for the end of the EV tax credit

With the $7,500 federal EV tax credit set to end on September 30 and a new, lower cost electric SUV due to launch next year, Rivian is on the hunt to cut costs.

That means layoffs.

The EV maker confirmed it’s laying off workers on its commercial team, with the cuts amounting to less than 1.5% of its workforce, according to Wall Street Journal reporting. The company had about 14,900 employees at the end of December.

Rivian lost $1.12 billion in its second quarter and downwardly revised its full-year loss forecast to between $2 billion and $2.25 billion. Its shares are up about 2% year to date.

It’s been a similarly bumpy trading day for Rivian rival Lucid, which continues to post fresh all-time lows on investor distaste for its 1-for-10 reverse stock split that took effect on Tuesday.

Exclusive | EV Maker Rivian Lays Off Workers as It Preps Launch of Cheaper SUV

Exclusive | EV Maker Rivian Lays Off Workers as It Preps Launch of Cheaper SUV

The EV maker confirmed it’s laying off workers on its commercial team, with the cuts amounting to less than 1.5% of its workforce, according to Wall Street Journal reporting. The company had about 14,900 employees at the end of December.

Rivian lost $1.12 billion in its second quarter and downwardly revised its full-year loss forecast to between $2 billion and $2.25 billion. Its shares are up about 2% year to date.

It’s been a similarly bumpy trading day for Rivian rival Lucid, which continues to post fresh all-time lows on investor distaste for its 1-for-10 reverse stock split that took effect on Tuesday.

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