Eli Lilly Shares Sink, Qualcomm's Tepid Forecast, Carrier Global Rises

On this episode of Stock Movers:

- Eli Lilly (LLY) shares fell the most intraday since October after CVS Health announced a plan to drop its blockbuster weight-loss drug Zepbound from its preferred list, making rival Wegovy more widely available. While the company maintained its sales guidance between $58 billion and $61 billion for the year, and Zepbound performed in line with Wall Street’s expectations, investors who had been hoping for more explosive growth were underwhelmed.

- Qualcomm (QCOM) shares fell after the company gave a tepid revenue forecast, underscoring concerns that tariffs will hurt demand for its products. Revenue in the period ending in June will be $9.9 billion to $10.7 billion, the company said Wednesday in a statement. The midpoint of that range was slightly below the average analyst estimate of $10.33 billion.

- Carrier Global Corp. (CARR) shares are up. The company said said its tariff exposure has been alleviated in part through price increases, allowing it to boost its full-year profit outlook and sending its shares higher. The HVAC company is fully mitigating the impact of tariffs that are in effect today, it said in a statement Thursday. “We are fully mitigating our tariff exposure through supply chain and productivity actions with the balance of about $300 million via price, which represents a little over 1% of additional pricing,” Chief Executive Officer Dave Gitlin said on a call with investors.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio News.

Speaker 2 (00:08):
The Stock Movers podcast, your roundup of companies making moves
in the stock market, harnessing the power of Bloomberg Data.

Speaker 1 (00:18):
Let's take a look at some of the movers on
this Thursday with us as Bloomberg News cross at reporter
Emily Graffeo, Emily, Eli Lilly, that's the first name you
have for us in this one really selling off today.

Speaker 3 (00:30):
Yeah, it was down as much as twelve percent.

Speaker 4 (00:33):
It's paired some of those losses, but it's still down
right now about ten percent. They had earnings, so they
cut their full year earnings outlook. But I think what's
capturing actually more attention is that CBS is dropping their
zep bound weight loss drug from their list of preferred drugs.
And this is really a blow to Eli Lilly because
they negotiated a deal with one of their top competitors,

(00:55):
Novo Nordisk, and they're now going to make Novo's wagov
more widely available to those CBS members. So this is
not a good day to be long Eli Lilly, but
good for Novo.

Speaker 1 (01:07):
I don't feel like the back and forth with these drugs.
You kind of see this right as different things, different developments,
and some of them you know you'll see gaining the clining.

Speaker 3 (01:17):
It just kind of moves around.

Speaker 5 (01:18):
Well, there's this like price war going on.

Speaker 6 (01:20):
I mean, earlier this week, Novo reached this deal with
Hymns and Hers along with two other telehealth providers, to
sell a month supply of we govy starting at four
hundred ninety nine dollars, that's before subscription fees. Lily announced
an expanded partnership with Weight Watchers on April twenty ninth
that was at at reaching customers who are looking for
lower cost treatment options. So there's a lot of back
and forth in the space.

Speaker 4 (01:38):
Yeah, Novo actually was up as much as three point
five percent today. It's in the red now, which is
interesting because earlier in the trading session it was very
clear like this is good.

Speaker 3 (01:47):
For Elay Lily, this is bad for Novo.

Speaker 4 (01:49):
Healthcare is the worst performing sector in the S and
P five hundred today, so just broadly that sector's lower.

Speaker 1 (01:56):
All right, Let's talk about another one that is definitely
selling off as well, Qualcom.

Speaker 4 (01:59):
Okay, so Qualcomm shares are falling. The chip maker gave
a tepid revenue forecast. It actually wasn't that bad. I
mean they said revenue will be nine point nine billion
to ten point seven billion, with the midpoint of that
range is actually below the estimates, which were ten point
three to three So, I mean, we're just talking numbers here.

(02:20):
But they are the biggest maker of chips that run smartphones.
So there's a lot of focus on Qualcomm amid the
trade war. We have Apple earnings coming up. I imagine
we'll be focusing on this as well, like just how
much is this company going to be affected by tariffs
and global trade?

Speaker 3 (02:39):
So, yeah, that's in focus right now.

Speaker 6 (02:42):
Okay, In a name that's not necessarily a tech name,
but one that's getting a lot of attention right now,
Carrier Global is on your radar.

Speaker 4 (02:48):
Yeah. I had to flag this because the headline today
Carrier Global mitigates tariffs helped by price increases. They said
in their on a call with investors they're fully mitigating
tariff exposure through essentially raising prices. I hadn't heard of

(03:08):
this company, but it's it's fairly large. It's sixty sixty
in market cap. They manufacture HVAC equipment, and I guess
they've figured out a way to mitigate that that terraff response.
But like it's at the it's good for the shareholders,
it's good for the stock price. But now for all
the customers that have to buy these hvacs, you know,

(03:31):
equipment parts, they have.

Speaker 5 (03:32):
To well, essentially say more.

Speaker 6 (03:34):
It's a company that has pricing power, right, I mean
thinking about it in the context of other companies and
how they're dealing with UH passing along these prices. If
they do find price increases, do they pass them on
to the consumer? Do they absorb them? It depends on
what you're selling.

Speaker 1 (03:48):
I mean, the CEO said, right, we're fully mitigating our
tarraff exposure through supply chain and productivity actions with the
balance of about three hundred million dollars via price. So
it sounds like they've got multiple approaches where they are
able to do things.

Speaker 3 (04:04):
You know, and make it and make it work.

Speaker 4 (04:07):
Yeah, I mean, they raise their earnings outlook for the year.
The stock was down about eight percent through the year,
but right now it's it's much higher. Let's see, so.

Speaker 3 (04:18):
I'm just getting it to load now up.

Speaker 4 (04:20):
Twelve percent, highest jump, biggest jump since April twenty twenty.

Speaker 1 (04:25):
Yeah, and it's up about three percent year to date. Yeah,
I think that's kind of interesting. No offense, but I
need my air conditioning.

Speaker 5 (04:30):
Everybody does in the United States, it gets called that
is one.

Speaker 6 (04:35):
Of the narratives that we've talked about, Carol, that has
emerged in recent years is the idea of these climate
control companies, right, that you indoor climate control.

Speaker 5 (04:42):
Yeah, like that's you know, that's.

Speaker 6 (04:44):
Not discretionary, right, That's something that's a necessity, especially as
different parts of the world get warmer.

Speaker 3 (04:49):
Yeah.

Speaker 4 (04:50):
I mean in high school when I was trying to
save on gas, I would definitely just keep the windows
down in the car instead of turning the air conditioning on.
But yeah, I would say it's somewhat of a consumer stable.

Speaker 3 (05:00):
Here's you a lot crazy?

Speaker 5 (05:01):
What about your apartment in the summer?

Speaker 3 (05:04):
The air conditioning songs are?

Speaker 2 (05:06):
You know?

Speaker 3 (05:06):
Yeah, I'm more respectable adult now.

Speaker 2 (05:09):
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