Diamonds and Dogs

10/30/24

Google (GOOG) is a diamond today up 3% on strong earnings thanks to their cloud business. Google beat by 28 cents as sales beat as well. Google Advertising revenue was up 10.4%, Google Cloud revenue rose 35% while investments in AI is beginning to pay off.  However, Google did say their next-gen AI agents wont launch until 2025.

Profit-taking in Eli Lilly (LLY) following strong earnings. The obesity drug maker is down 7% as they missed earnings and sales estimates as their two top drugs missed estimates by a wide margin. Mounjaro sales were $3.1 billion in the quarter, sharply below the $3.8 billion consensus estimate while Zepbound sales were $1.3 billion, short of the $1.7 billion consensus estimate. Cheaper copycat GLP-1 drugs have made some inroads, but Lilly will boost their advertising to drive demand going forward.