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Market Moves Yesterday

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Hey Scoopers,

Happy Friday! The weekend is on the horizon, and here’s what we’re covering today:

👉 Eli Lilly stuns Wall Street

👉 Paramount Global surpasses earnings estimates

👉 E.l.f Beauty soars past estimates

So, let’s go 🚀

Market Wrap 📉

Equities climbed higher on Thursday after new labor data boosted investor confidence in the U.S. economy following a sharp pullback earlier this week.

Big tech giants such as Nvidia and Broadcom jumped over 6%, while Meta Platforms and Apple ticked higher by 4.2% and 1.7%, respectively.

The weekly jobless claims came in below forecasts, allaying concerns about the strength of the labor market. First-time filings for jobless benefits came in at 233,000 last week, down 17,000 from the prior week and lower than estimates of 240,000.

Elsewhere, the 10-year Treasury yield hit 4%, a level seen before the disappointing July jobs report sent markets reeling last Friday.

Trending Stocks 🔥

Expedia - The stock is up 11.5% in premarket after the online travel company reported revenue of $3.56 billion and earnings of $3.51 per share, compared to estimates of $3.53 billion and $3.06 per share, respectively.

Unity Software - The stock is rangebound in premarket after the video game software development company beat estimates in Q2. However, it forecast Q3 sales between $415 million and $420 million, below forecasts of $458 million.

Monster Beverage - Shares of the energy drink maker fell almost 11% after it reported revenue of $1.9 billion and earnings of $0.41 per share, below consensus estimates of $2.01 billion and $0.45 per share, respectively.

Eli Lilly Stock Gains 9.5%

Eli Lilly reported Q2 earnings and revenue that blew past estimates. The healthcare giant also hiked its revenue outlook for $2024 by $3 billion due to strong sales of its diabetes drug Mounjaro and weight loss injection Zepbound.

Eli Lilly expects to end 2024 with sales between $45.4 billion and $46.6 billion and earnings between $16.10 and $16.60 per share. It previously forecast 2024 earnings between $13.50 and $14 per share.

Eli Lilly attributed its increased guidance to Mounjaro's and Zepbound's strong performance. The company also plans to launch its diabetes drug in other international markets.

To cater to rising demand, the company has built six manufacturing plants, some of which are already ramping up.

In an interview with CNBC, Eli Lilly CEO David Ricks stated, “We just see unbelievable demand, and we’re not even trying that hard to promote this drug. What you’re seeing is just consumer organic demand here as we’ve shipped more product, as we bring more supply online in the United States.”

In the June quarter, Eli Lilly reported:

👉 Revenue of $11.30 billion vs. estimates of $9.92 billion

👉 Earnings per share of $3.92 vs. estimates of $2.60

Its sales were up 36% year over year, allowing the healthcare major to easily surpass Wall Street estimates in Q2.

Zepbound completed its second full quarter in the U.S. and raked in $1.24 billion in sales, above estimates of $922.2 million. Around 86% of commercial insurances cover Zepbound, up from 67% in the prior quarter.

Mounjaro’s Q2 sales stood at $3.09 billion, rising over 200% year over year and higher than estimates of $2.39 billion.

Valued at $761 billion by market cap, Eli Lilly stock is up 43% in 2023 and over 60% in the past year.

Paramount Initiates Lay-offs

In the June quarter, Paramount reported:

👉 Revenue of $6.81 billion vs. estimates of $7.21 billion

👉 Earnings per share of $0.54 vs. estimates of $0.12

The company’s streaming division swung to an unexpected profit as Paramount’s direct-to-consumer segment reported a profitable quarter for the first time ever.

Its Q2 sales were down 11% and missed estimates due to lower licensing, TV advertising, and cable subscription revenue. Meanwhile, Paramount+ sales were up 46% due to subscriber growth in key markets and higher prices.

The streaming business reported a profit of $26 million, compared to a loss of $424 million. Moreover, analysts forecast a loss of $265 million for the streaming segment in Q2.

Paramount also reported a $6 billion one-time impairment charge associated with the decline in its cable networks. The stock is down around 30% in 2024 amid a decline in cable subscribers and a soft linear TV ad market.

Finally, Paramount Global announced it is reducing its U.S. workforce by 15% as part of broader cost-cutting plans as it prepares to merge with Skydance Media. The company has identified $500 million in cost savings as part of $2 billion in synergies related to the Skydance merger.

E.l.f. Beauty Tanks Despite Massive Beat

E.l.f. Beauty, a cosmetics retailer, blew past quarterly estimates, posting a 50% gain in sales, following a 76% jump in the previous quarter. In fiscal Q1 of 2025 (ended in June), it reported:

👉 Revenue of $324 million vs. estimates of $305 million

👉 Earnings per share of $1.10 vs. estimates of $0.84

E.l.f. Beauty saw growth across categories, allowing it to raise its fiscal 2025 guidance. The company expects sales to range between $1.28 billion and $1.3 billion, above its previous outlook of $1.23 billion and $1.25 billion.

It also forecast adjusted earnings for 2025 between $3.36 per share and $3.41 per share, below consensus estimates of $3.42 per share, dragging the stock lower by 9% in pre-market.

Founded in 2004, E.l.f. Beauty has gained relevance among Gen Z and Gen Alpha consumers due to marketing campaigns on social media platforms such as TikTok.

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Chart of The Day

The above graphic is a comparison between the largest stock markets by country in 1900 and 2023.

Back in 1900, European countries accounted for 67% of the global market cap. Today, the U.S. is the undisputed leader as it accounts for 60% of the total market cap and is home to six of the seven trillion dollar companies.

In this timeframe, countries such as Japan, China, and India have emerged as major equity markets, accounting for 11% of the total market cap.

Meme of the Day

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DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.