Diamonds and Dogs

8/8/24

Pharmaceutical giant Eli Lilly (LLY) is leading the charge, up 8% on strong earnings and raised outlook due to strong demand for diabetes treatment Mounjaro and obesity drug Zepbound. The drug sector in general looks good. Even with today's rally, Lilly is still off 13% from the 52 week high set in July.

Warner Brothers Discovery (WBD) continues to move the wrong way. The online streaming giant, spun off from AT&T, continues to move lower to a new 52 week low on a big write down. Warner Bros. Discovery posted a nearly $10 billion quarterly loss due to a write-down of the value of its cable networks, a stunning acknowledgment of how the television industry has deteriorated since the blockbuster deal that created the conglomerate two years ago. The three year return for Warner Brothers is now a negative 75%.