Corporate results were driving big moves in a variety of stocks on Tuesday afternoon, while a positive development on Novo Nordisk’s (NVO) Wegovy weight-loss drug sent big pharma stocks soaring.
Below is a breakdown of some of the biggest movers on Yahoo Finance’s trending tickers page.
Eli Lilly stock (LLY) was up nearly 20% Tuesday afternoon, hitting a record high after the company beat Wall Street’s expectations for the second quarter and boosted its full-year guidance. The company now expects full-year revenue in a range of $33.4 billion to $33.9 billion. Previously it had guided for revenue in a range of $31.2 billion to $31.7 billion.
“This quarter saw an acceleration of revenue growth as our recently launched product portfolio gathers momentum,” Eli Lilly CEO David Ricks said on the company’s earnings call. “Excluding COVID-19 antibodies and vaccine revenue, we grew 22%, driven by Mounjaro, Verzenio, and Jardiance.”
Mounjaro, which is currently a Type 2 diabetes drug awaiting regulator approval to join the growing prescription weight-loss space, delivered revenue of $960 million in the quarter, per Eli Lilly CFO Anat Ashkenazi. The growth comes on the same day positive news came out from Novo Nordisk over the use of its weight loss drug. A study revealed that Wegovy lowered the incidence of heart attack, stroke, or death from heart disease by 20%.
Novo Nordisk shares also skyrocketed nearly 20% on the news.
Shares of Beyond Meat (BYND) headed in the opposite direction on Thursday afternoon, falling as much as 20% as the plant-based meat company reported weaker-than-expected earnings, cut its full-year revenue guidance, and said it no longer believes it will reach profitability this year.
Beyond Meat now sees full-year revenue in a range of $360 million to $375 million. It had previously seen revenue in a range of $375 million to $415 million.
“As we navigate what has proven to be a more prolonged crossover from early adoption to the mainstream than we anticipated, we are operating with increasing levels of efficiency,” Beyond Meat Founder and CEO Ethan Brown said on the company’s earnings call. “Our updated and more cautious revenue outlook in the back half of the year will very likely delay our achievement of cash-flow-positive operations.”
Palantir stock (PLTR) was also in the red as the company’s revenue beat wasn’t enough to impress Wall Street after the stock ran up more than 160% to start the year.
Palantir guided for third quarter revenue in a range of $553 million to $557 million versus Street expectations for $552 million. The artificial intelligence software is still seeing mixed reactions from Wall Street analysts, though.
“While PLTR may have some success commercializing GenAI-related offerings across their small but deep list of customers given the deep domain knowledge, we believe the packaging/monetization motion remain in its early days,” Citi analyst Tyle Radke wrote in a note Tuesday morning. “With shares up 165% YTD and trading at 17x EV/Sales, we are just not impressed by PLTR’s low-teens revenue growth rates, especially with stronger growth/clearer AI tailwinds at peers (i.e., MSFT, MDB).”
Meanwhile, Wedbush’s Dan Ives still sees upside in Palantir.
“We believe this quarter was only a stepping stone on the golden path for PLTR and the company is well-positioned to capitalize on the strong commercial spending tailwinds into 2H23/2024,” Ives wrote on Tuesday. “With a strong product portfolio coupled with AI, we expect PLTR to garner a meaningful share of what we believe to be an $800 billion AI Global TAM.”
Tilray (TRLY) rose more than 25% after the company announced the purchase of eight beer and beverage brands from Anheuser-Busch InBev (BUD). Tilray will now own Shock Top, Breckenridge Brewery, and Blue Point Brewing Company among others.
The beaten-down pot stock, which already owns Montauk Brewing, noted these purchases from AbInBev are additional moves in its diversification strategy.
“Upon federal cannabis legalization, we expect to leverage our leadership position, wide distribution network and portfolio of beloved beverage and wellness brands to include THC-based products and maximize all commercial opportunities,” Tilray CEO Irwin Simon said.
Datadog (DDOG) stock sank nearly 20% as the company slashed its full-year outlook. The company now sees revenue in a range of $2.00 billion to $2.06 billion after previously guiding for a range of $2.08 billion to $2.10 billion.
“Our growth was a little lower in Q2 than it had been in the previous quarters,” Datadog CFO David Obstler said on Monday night’s earnings call. “We have that effect moving forward, given our recurring revenue model.”
Josh Schafer is a reporter for Yahoo Finance.
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