Finance
Verizon Shares Take a Hit After Q1 Sales Warning
March 13, 2025
No Coffee, No Restroom: Starbucks (SBUX) $95.09 (+0.77%) has put an end to its open-access approach, where anyone could use its bathrooms, Wi-Fi, and seating without making a purchase.
The stock market closed on a mixed note after the Producer Price Index, which measures wholesale price shifts, increased less than anticipated last month. All attention now turns to earnings reports from major banks and the December consumer inflation data, which could have a significant impact on the Federal Reserve's upcoming rate decision.
When the hype doesn’t deliver… Eli Lilly (LLY) $729.50 (-4.18%) saw its stock drop 7% after the pharmaceutical giant revised its annual sales forecast downwards. The company admitted that demand for its weight-loss and diabetes medications, including the popular Mounjaro and Zepbound, fell short of the aggressive targets it had set. Despite their growing popularity, Lilly reported $5.4 billion in combined revenue for these drugs in Q4—below the $6.5 billion analysts had anticipated.
The problem: Lilly struggled to meet demand for its blockbuster drugs, mainly due to a shortage of tirzepatide, the key ingredient, which only stabilized late last year.
The fix: In response, Lilly invested billions to ramp up production. CEO Dave Ricks reassured investors, saying that a significant increase in supply is on the way.
But it’s not just about supply… Lilly is also facing increasing competition in the weight-loss drug market. While heavyweights like Novo Nordisk (NVO) $78.92 (-5.25%) with its Ozempic and Wegovy continue to lead, the two-year shortage of GLP-1 injections created a window for telehealth companies like Hims (HIMS) $27.96 (-0.39%) and Ro to offer cheaper, compounded alternatives. With the FDA declaring the shortage over, these copycat versions could soon be on the outs, potentially benefiting the major pharma players.
Investor expectations remain high… but meeting them is a tall order. Lilly’s revised $45 billion annual sales forecast is still a 32% increase from last year, and not far from what was projected in October. Yet, disappointed by the miss, investors bailed. A familiar story in the market, similar to how Nvidia’s (NVDA) $137.63 (3.13%) impressive growth failed to meet lofty expectations, leaving some investors unsatisfied.
Presented by Nasdaq
A recent study from the Nasdaq Index Research Team found that among global large cap companies, patent filers recorded the fastest sales growth over the trailing 15 years. Growth for patent filers ranged 60-70%, nearly 2x the average for the entire cohort (35%).1
Investors looking to access innovative, patent filing companies need look no further than the Nasdaq-100® (NDX®).2
The success of NDX can be attributed in part to the value of its constituents’ patents, which has grown ~10.5x since May 2007, vs. ~4x across all publicly listed, tracked companies globally. Growth for the S&P 500 overall was ~5.5x, but only ~4x when excluding the contribution of overlapping Nasdaq-100 firms.3
Learn more about the innovative index here: Nasdaq-100 Index.®
A tough pour ahead… Tennessee whiskey’s smooth image may be facing some rough waters. Brown-Forman (BF.B) $34.23 (+0.60%), the parent company behind Jack Daniel’s, announced plans to lay off 12% of its workforce—around 650 jobs—and close its barrel-making facility in Louisville. The move is part of a broader cost-cutting strategy aimed at saving the company up to $80 million annually. The whiskey giant is feeling the pressure as American drinking habits continue to shift.
Whiskey sales on the decline: Brown-Forman has seen a sales slump for four consecutive quarters, with 2023 marking its worst stock performance in 50 years. Shares are now at their lowest point in a decade.
On the rocks: Rising prices across the alcohol market are causing consumers to pull back. U.S. whiskey volumes dropped 2% through August, a stark contrast to the 5% annual growth seen between 2019 and 2022.
Dry times: Alcohol brands are being squeezed by the rise of cannabis, weight-loss drugs, and the booming market for alcohol-free alternatives. Nonalcoholic spirits surged 29% in sales between 2022 and 2023, while overall alcohol sales in the U.S. fell nearly 3% in the first half of last year. Major players like Pernod Ricard, Molson Coors (TAP) $55.23 (+0.47%), and AB InBev (BUD) $48.00 (+1.86%) are all reporting declines in sales or volume. Even Constellation Brands (STZ) $185.02 (-0.22%), the maker of Modelo, saw a 14% drop in its wine and spirits sales.
Big Booze Faces a Turning Point: Echoing the decline of Big Tobacco, the alcohol industry is grappling with shifting cultural trends and health concerns. This month, the U.S. surgeon general recommended cigarette-style warnings for alcohol, citing research that links it to 100,000 cancer cases annually. Just as tobacco companies pivoted to vapes and smokeless products as cigarette sales dwindled, the alcohol industry may need to rethink its strategy. Some brands are already capitalizing on the nonalcoholic trend, offering alcohol-free versions of their flagship products—like Heineken (HEINY) $34.03 (+1.07%).
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Advertiser's disclosures:
¹ Source: Nasdaq Global Indexes, Nasdaq AI Team, IFI Claims, Factset as of 8/29/2024. Index data as of 12/31/2013 and 12/31/2023. Companies are ranked on prior full-year total patent filings.
² It is not possible to invest directly in an index.
³ See slide 26 for further details on the growth in the value of patents for NDX®, S&P 500, and Global ex-US since May 2007.
Nasdaq®, Nasdaq-100 Index®, Nasdaq-100®, and NDX® are trademarks of Nasdaq, Inc. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither Nasdaq, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.
⁴ The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.
⁵ Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.
⁶ Minimum investment is $999.96. Please read the offering circular and related risks at invest.modemobile.com. This is a paid advertisement for Mode Mobile’s Regulation A+ Offering.
Past performance is no guarantee of future results. 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.
