💊 Eli Lilly’s New Competitor

Plus, the company accused of rigging the European chocolate market.

Happy Thursday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

  • 🟥 | US Stocks Fell on Thursday. Despite an extremely strong earnings report from Nvidia, all three major indexes fell. Investors are now pricing in just a 51% chance that the Fed will cut rates during its September meeting.

  • 📈 | One Notable Gainer: Shares of Nvidia jumped 9% after the company shattered Wall Street forecasts in its earnings report. The chip designer’s profits and revenues jumped 628% and 268%, respectively.

  • 📉 | One Notable Decliner: Boeing’s stock dropped 8% after its CFO Brian West warned investors that the company’s second-quarter cash burn could be worse than its first quarter’s, which was a $3.9 billion burn.

  • 💊 | Tomorrow's Trade: Eli Lilly’s New Competitor. Scroll down for more.

Plus, access high-growth stocks without the high buy-in via $0.25 trades…

YESTERDAY’S POLL RESULTS

🟨🟨🟨🟨🟨🟨 Constellation (CEG)

🟩🟩🟩🟩🟩🟩 NextEra (NEE)

🟨🟨🟨🟨⬜️⬜️ Vistra (VST)

S&P 500 Heatmap. Credit: Finviz

All Stock Heatmap. Credit: Finviz

Global ADR snapshot. Credit: Finviz

MARKET MOVERS

BZFD (-12%) Shares of Buzzfeed partially retreated from their massive gain yesterday following news that Vivek Ramaswamy acquired an activist stake (CNN)

LYV (-8%) The DOJ filed a lawsuit seeking to break up Live Nation, alleging that the parent company of Ticketmaster has violated antitrust laws (NBC)

TITN (-15%) Agricultural equipment company Titan Machinery missed its Q1 targets due to persistent inventory issues and softening demand (Benzinga)

ELF (+19%) Elf Beauty surpassed fiscal fourth-quarter earnings estimates on top and bottom lines, with EPS of 53 cents compared to the expected 32 cents (IBD)

CYTK (-17%) Shares of biopharmaceutical company Cytokinetics plummeted following a $500 million common stock offering at $51 per share (Benzinga)

PARTNER CONTENT

Did you miss out on NVIDIA's historic rally? You’re not alone.

Even before the rally, a single share already cost hundreds of dollars. By the time you got word of the bull run, it probably cost a couple hundred more than the day before. 

Whether or not a stock seems like a sure bet, $500 - $1,000 is a daunting buy-in. 

Now, you can access high-growth stocks, without a high buy-in with a method called the $0.25 Trade.

OVERHEARD ON THE STREET

YF: Nvidia CEO Jensen Huang says the company has no issues with demand as it shifts to the next generation of AI chips, what it lacks is supply.

CNBC: Pfizer said it launched a near multiyear program to reduce costs that could save $1.5 billion by 2027.

Reuters: NASA and Boeing are targeting June 1 for the company's first crewed launch of its Starliner spacecraft as they investigate the cause of a helium leak.

CNN: Mondelez, the maker of Oreo and Cadbury chocolate, has been fined $336 million for rigging the European chocolate market to keep prices higher.

Bloomberg: The average 30-year mortgage rate has fallen below 7% for the first time since early April.

TOMORROW’S TRADE IDEA, TODAY

Nurse Medicine GIF by CBS

A Small Piece of a Big Pie

According to JPMorgan (JPM) analyst Hardik Parikh, Novo Nordisk (NVO) and Eli Lilly (LLY) have a new competitor in the GLP-1 drug market. 

Parikh is bullish on Structure Therapeutics (GPCR). The analyst thinks the stock is undervalued and could be a major competitor as it develops a treatment for Type 2 diabetes.

According to Parikh, oral GLP-1 drugs are Structure’s bread and butter, and the market could grow to $30 billion in sales by 2035. Even if Structure commanded a small percentage of the market, its stock could have a significant upside.

Holding Its Own

Parikh believes Structure is poised to generate over $1 billion in sales by 2035 through its oral GLP-1 product “1290.” He noted that the company holds advantages over its competition, including easier manufacturing and time-to-market speed. 

He anticipates that Structure’s 1290 will be the first oral GLP-1 product to hit the market that isn’t produced by Eli Lilly or Novo Nordisk. The analyst predicts that it will be launched after 2029.

So far, the product’s testing has held up to its competition, a trend Parikh expects to continue as no serious safety issues have arisen thus far.

Possible Partnerships

On top of future potential, the analyst sees Structure as a viable partner for larger drug companies looking to get in on the weight-loss game. This could provide significant growth for the stock.  

Parikh has initiated coverage of the stock with a $65 price target. This implies a 79% upside from Wednesday’s close. 

The stock is down around 11% this year. If the market for oral GLP-1 drugs takes off like Parikh says it will, this stock could be poised to command a valuable share.

Are you bullish or bearish on Structured Therapeutics (GPCR) over the next 12 months?

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PARTNER CONTENT

Did you miss out on NVIDIA's historic rally? You’re not alone.

Even before the rally, a single share already cost hundreds of dollars. By the time you got word of the bull run, it probably cost a couple hundred more than the day before. 

Whether or not a stock seems like a sure bet, $500 - $1,000 is a daunting buy-in. 

Now, you can access high-growth stocks, without a high buy-in with a method called the $0.25 Trade.

ON OUR RADAR

AP: Inflation in the UK fell sharply to its lowest level in nearly three years in April on the back of big declines in domestic bills.

Bloomberg: South Korea has unveiled a $19 billion package of incentives to bolster its chip sector, a boon to Samsung Electronics Co. and SK Hynix Inc.

BI: Chipmakers ASML and TSMC have a kill switch capable of disabling advanced chipmaking machines remotely should China invade Taiwan.

CNN: TikTok is planning to lay off large portions of its communications and marketing workforce and dismantle its global user operations team.

OilPrice: Democratic lawmakers are urging the DOJ to investigate the world’s largest international oil companies for climate change disinformation.

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