On Friday, Eli Lilly and Company (LLY) (Purchased 0.2 units @ $582.99) announced that the US Food and Drug Administration (FDA) has postponed approving its Anti-Alzheimer’s drug “Donanemab” to further evaluate the safety and efficacy of the drug. The date of the advisory committee meeting has yet to be set by the FDA, and the timing of expected FDA action on Donanemab will be delayed beyond the first quarter of 2024, as Eli Lilly itself reported. As a result of the news, the company fell around 2%.
Nvidia (NVDA) (Purchased 0.24 units @ $471.73) was protagonist of an interesting session on Friday. The stock was up around 5% intraday, and then it changed its course and plumbed to a -4% performance-ish. The last time this happened to Nvidia was more than 2 years ago, when the company was up 5.4% but finished with a -3.6% performance, according to Dow Jones Market Data. The opinion of a Mizuho analyst on this Nvidia’s sudden shift in performance is that semiconductor stocks have been overbought and when they start to fade, quant machines start to sell, and then also retail investors panic and start to sell too. He also allerted investors that Nvidia and other AI-winner stocks in the chip sector cannot trade up every single day, as this is an unnatural trend that will come to an end.
Costco reported better-than-expected earnings, but its revenue growth came in lower than anticipated, causing the stock to lose more than 7% in early trading Friday. This loss set the wholesale company for its worst day since May 2022. Revenue rose 6% to $58.44 billion, but failed estimates of $59.16 billion. As announced before, the company had better-than-expected earnings, registering a strong $3.92 EPS, against analysts’ expectation of $3.62.
Author: Filippo Ferrero