Meta Jumps, Eli Lilly Drops, Kohl's Rises After Firing CEO

On this episode of Stock Movers:
- Meta Platforms (META) shares jumped after the company’s advertising sales quelled Wall Street concerns about the impact of the Trump administration’s trade war, with first-quarter revenue beating expectations. Meta needs its advertising business, which makes up 98% of the company’s revenue, to continue growing in order to fund an expensive expansion in artificial intelligence.
- Eli Lilly & Co.’s (LLY) shares dropped in morning trading after CVS Health Corp. announced a plan to drop its blockbuster weight-loss drug Zepbound, making rival Wegovy more widely available. The drugmaker also cut its full-year earnings outlook, citing research and development costs.
- Kohl's (KSS) shares rise after the company fired its chief executive officer after the board found he directed the company to do millions of dollars of business with someone he had a personal relationship with on “highly unusual terms.” The company said it is starting a search to find a permanent replacement following the departure of Ashley Buchanan and that Chairman Michael Bender would serve as interim CEO, according to a statement.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news, The Stock Movers podcast,
your roundup of companies making moves in the stock market
harnessing the power of Bloomberg Data.

Speaker 2 (00:17):
Let's think a look at some of those stocks on
the move. We are joined them by Bloombergs and its Setkova.
All right, let's kick it off with Meta. I mean
big tech delivered.

Speaker 3 (00:24):
So far, big tech delivered amid very high macro uncertainty.
We're seeing what's happening with the data metas shares jump
as much as eight percent earlier steal the company despite
the macro certainties of more than four percent here today.
This of course comes on the back of very strong
earning reports and particularly advertising sales, something that everyone has

(00:46):
been looking at. Of course, the advertising business is very
important for Meta. It makes up ninety eight percent of
the company revenue. The company is obviously really increasing artificial
intelligent just spending, and of course this is where the
advertising business became so important, because it's the way to
fund it. The company reported forty two point three billion

(01:09):
in first quarter sales. This is about one billion higher
than what the street was expecting. We also had good guidance,
which has been the deal breaker. Of course this earning season,
current quarter revenue will be in line with analyst expectations.
And we have Mark Zuckerberg saying that the company is
well positioned to navigate the macro uncertainty. So very good
earnings reports, strong guidance, and a good day for the company.

(01:34):
Still has small loss here today, but definitely much needed
relieve today.

Speaker 1 (01:39):
I mean and so Meta had good numbers. Microsoft had
good numbers. Three trillion dollar market cap company stocks up
nine percent. That is crazy total wealth being created. What
else you got?

Speaker 3 (01:50):
We have Ali Lelly, the news here not so good.
The shares dropped in morning trading as much as eight percent.
We have a combination of not so good earnings report. Actually,
Bloomberg Intelligence had a very good way to say it,
basically the earning report, which is not worth paying a premium,
so that was a really good way to put it.

(02:10):
Of course, we have the news from CVS Health planning
to distribute we gov, which is obviously the rival of
Eli Lilly, so that that combined with the earnings report,
puts a lot of pressure on the stock. From the
earnings report, the drug maker cut its full years earnings outlook,

(02:31):
and again the guidances where investors have clearly been very worried,
and it also cut the twenty twenty five at just
the earning outlook. The stock had a super strong start
of the year. Now it's still up about six seven percent,
but we've had a very tough week for Reli Lily,
So clearly investors are getting worried about those more high

(02:54):
flying stocks that have very high multiples.

Speaker 2 (02:56):
All right, real quick, let's kiss off calls, get it, Yeah, yeah, yeah,
we're having So.

Speaker 3 (03:01):
We're having some breaking news there. Coles fired at CEO
after the boards found that he directed the company to
do millions of dollars of business with someone he had
personal relationship with. Interestingly, that reaction is posed if the
stock rolls as much as eight percent in earlier training.
The company said it's starting to search to find a

(03:22):
permanent replacement, so we yet to see. Of course, this
is a brop change for a company that has struggled
for years. It has posted twelve straight quarters of revenue
declines and it's down about fifty.

Speaker 1 (03:33):
Percent years The Stock Movers podcast from Bloomberg Radio. Check
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