(Ciara Kimsey/Shutterstock) |
Investors get a dose of reality |
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No latte, no loo: Starbucks ended its open-door policy, which let folks use its restrooms, Wi-Fi, and tables without having to buy anything. Stocks finished mixed after the producer price index (which tracks wholesale price changes) rose less than expected last month. Today all eyes are on big-bank earnings and December's consumer inflation #s, which could influence the Fed's rate decision this month. |
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When optimism backfires… Eli Lilly stock fell 7% yesterday after the pharma juggernaut trimmed its annual sales forecast, saying demand for its weight-loss and diabetes drugs wouldn't match the lofty levels it had expected. Its diabetes treatment, Mounjaro, and obesity drug, Zepbound, have spiked in popularity as more folks inject them to shed pounds. Still, the company said it made a combined $5.4B from the drugs in the fourth quarter, less than the $6.5B that analysts were looking for. |
- Problem: Lilly was struggling to keep up with demand for the blockbuster drugs, whose active ingredient (tirzepatide) was in shortage until late last year.
- Solution: Lilly spent billions ramping up production of the injectables, and CEO Dave Ricks said there's "tons of supply coming online."
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Don't just blame supply… As companies pile into the weight-loss-drug biz, Lilly has had to fend off rising competition — and not just from industry leaders like Novo Nordisk, which makes Ozempic and Wegovy. The two-year shortage of GLP-1 injections gave telehealth companies like Hims and Ro a chance to weigh in with cheaper compounded versions of name-brand obesity drugs. But now that the FDA's declared the shortage over, compounding pharmacies will be likely hampered from selling copycats, which could boost pharma titans. |
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Investors want their expectations beat… but that's hard to do when the bar is high. Lilly's revised forecast of $45B in annual sales isn't far off from what it predicted in October and would still represent a 32% sales pop from the previous year. But disappointed investors sold off the stock. We've seen similar reactions to earnings from other buzzy companies like Nvidia, whose feverish growth wasn't enough to satisfy high hopes. |
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America's top homebuilder invests in "off-market" disruptor |
Boxabl is a private company and not listed on NASDAQ. |
You must be doing something right if the biggest names in your industry take an interest. That's the story with BOXABL. They've rethought housing by bringing assembly lines to new home construction. Not to mention, the company has gained the attention of investors like D.R. Horton. Where traditional homes take over 7 months to build, BOXABL factories can mass produce their signature Casita home in nearly four hours, plumbing, electrical, HVAC, and all. No wonder 190,000+ potential buyers already reserved one1. And they're just getting started.
Now, everyday investors can join them too. When BOXABL last opened a Reg A investment opportunity, they maxed out the $75M regulatory limit. Become an investor for just $0.80/share.2
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America's top homebuilder invests in "off-market" disruptor |
Boxabl is a private company and not listed on NASDAQ. |
You must be doing something right if the biggest names in your industry take an interest. That's the story with BOXABL. They've rethought housing by bringing assembly lines to new home construction. Not to mention, the company has gained the attention of investors like D.R. Horton. Where traditional homes take over 7 months to build, BOXABL factories can mass produce their signature Casita home in nearly four hours, plumbing, electrical, HVAC, and all. No wonder 190,000+ potential buyers already reserved one1. And they're just getting started. Now, everyday investors can join them too. When BOXABL last opened a Reg A investment opportunity, they maxed out the $75M regulatory limit. Become an investor for just $0.80/share.2 |
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In need of a mixer… Tennessee whiskey might not be as smooth as Chris Stapleton's hit suggests. Jack Daniel's parent Brown-Forman said it would lay off 12% of its staff, or about 650 employees. The spirits seller is also closing its Louisville barrel-making facility. Brown-Forman says the cost cuts would save the company up to $80M/year: a relief as booze brands continue to feel the spins from Americans' changing drinking habits. |
- Whiskey soured: Brown-Forman's sales have fallen for four straight quarters. Last year marked its stocks' worst performance in a half century, and shares are at a decade low.
- On the rocks: Consumers have balked at higher prices up and down the alcohol aisle. Whiskey sales volumes in the US dropped 2% through August, a real slide from the 5% annual growth in volumes between 2019 and 2022.
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Dry as a bone… Alcohol companies have been squeezed by weed use, obesity drugs, and a boom in zero-proof alts from companies like Athletic Brewing and Ghia. Sales of nonalcoholic spirits surged 29% between 2022 and 2023, while in the first half of last year alcohol sales in the US fell almost 3%. Booze biggies like Pernod Ricard, Molson Coors, and AB InBev have recently reported falling sales or volumes. This month, Modelo maker Constellation Brands said its wine and spirits sales tumbled 14%. |
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Big Booze is looking more like Big Tobacco… The US surgeon general this month called for cigarette-like warnings to be placed on alcohol after research linked it to 100K US cancer cases/year. Just as Big Tobacco turned to vapes and "smokeless" alts as cig sales fell, Big Booze may need to shift gears. Companies are already cashing in on nonalcoholic versions of their biggest brands (think Heineken 0.0). |
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Can the drinks-focused concept revive store growth in the US? Read more. |
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Applied Digital shares popped as much as 20% yesterday after Australian bank Macquarie said it'd invest $5B in the AI data-center developer as server demand runs hot. Shares of Kay and Jared parent Signet Jewelers slipped more than 20% after the diamond dealer said holiday-bling sales disappointed and it cut its Q4 guidance. Quantum-computing cos like D-Wave Quantum, Rigetti, and IonQ saw their shares rebound from Monday's rout after an analyst doubled his price target on some names. |
- DirecTV unveiled a $70/month live-sports streaming service with games from ESPN, Fox Sports, and NBC, as cable companies try to fend off sports-hungry streamers.
- Boeing delivered 348 planes last year (a third fewer than in 2023, and half of what Airbus delivered) as production setbacks plagued the jet legend.
- TikTok dismissed a report saying that Chinese gov't officials were considering selling the app to Elon Musk, calling it "pure fiction."
- Meta said it plans to replace 5% of its lowest performers this year with new hires after recently boosting its headcount for the first time in years.
- President Biden issued an executive order allowing some developers to lease federal land to build AI data centers.
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- Consumer-price inflation data for December
- Earnings expected from Goldman Sachs, JPMorgan Chase, Citigroup, Wells Fargo, BlackRock, BNY, and Concentrix
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Authors of this Snacks own shares of: Eli Lilly, Nvidia and Starbucks |
Advertiser's disclosures: 1 Reservations do not require purchase of a Casita and there is no assurance of how many will result in actual purchases. 2 The minimum investment is $1,000. This is a paid advertisement for the Boxabl Inc. Regulation A offering. Please read the offering circular and related risks at www.boxabl.com/invest#circular. Investing in private company securities is not suitable for all investors because it is highly speculative and involves a high degree of risk. It should only be considered a long-term investment. You must be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid, and there is no guarantee that a market will develop for such securities. DealMaker Securities LLC, a registered broker-dealer, and member of FINRA | SIPC, located at 105 Maxess Road, Suite 124, Melville, NY 11747, is the Intermediary for this offering and is not an affiliate of or connected with the Issuer. Please check our background on FINRA's BrokerCheck. |
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Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... See more |
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