Eli Lilly lost over $100 billion in one day.
The reason? Their new obesity pill only helped people lose about 11 percent of their weight, which was far below what the market expected. The stock dropped 14 percent, but here’s the crazy part: it is still trading at over 50 times earnings.
This is not just a bad day. It could be a shift in how investors value the company.
Lilly was priced like every drug would be a blockbuster. But now one of their biggest launches underdelivered. That breaks the story.
Yes, the company is solid. But the stock was priced for perfection, and that just got proven wrong. If investors start revaluing based on actual results, this may not be the bottom yet.
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- Porter Harry·08-08Spot on on $LLY — a harsh reality check for a stock priced to perfection.1Report
- Enid Bertha·08-10the treat has lost all confidence in lly ability to continue it ridiculous business model! the model is a joke nd i predicted that more the 8 months goLikeReport
- Merle Ted·08-10the valuation lly traded at was egregiously stupid! anyone who bought at those level may need to wit 25 yers if ever to break evenLikeReport
- BertScott·08-08Sounds like the market finally woke up1Report
- Reg Ford·08-09Solid company, but hype’s gone. Maybe a buy after more dip?LikeReport
- Frosty4ever·08-10interesting.LikeReport