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Why Is Uber Stock Falling and Is It a Buying Opportunity?

Why Is Uber Stock Falling and Is It a Buying Opportunity?

Globe and Mail2 days ago

News of Tesla 's (NASDAQ: TSLA) progress on driverless car technology is causing Uber (NYSE: UBER) shares to decline.
*Stock prices used were the afternoon prices of May 28, 2025. The video was published on May 30, 2025.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Should you invest $1,000 in Uber Technologies right now?
Before you buy stock in Uber Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Uber Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!*
Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of May 19, 2025
Parkev Tatevosian, CFA has positions in Uber Technologies. The Motley Fool has positions in and recommends Tesla and Uber Technologies. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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Bear Market Myths Debunked: Separating Fact From Fiction
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Bear Market Myths Debunked: Separating Fact From Fiction

There may not be a scarier pair of words to see in a financial news headline than "bear market." A bear market, typically defined as a 20% decline from a broad market index's previous high, can be jarring, especially when the sell-off happens quickly. You only need to recall the news stories in April when President Donald Trump's global tariff announcements sent the market tumbling to understand the fear a bear market can bring. However, they're also a healthy and necessary part of the market's cycles, and understanding bear markets can help you navigate them wisely -- or even use them to your advantage. Here are four truths about bear markets that every investor should know. 1. They usually don't last long Imagine you're at the start of a roller-coaster ride with your car slowly being pulled higher and higher. Then, you cross the peak and plummet back down at breathtaking speed. That can often be what stock market cycles feel like as they alternate between bull and bear markets. Like that steady uphill climb, bull markets can last for a while. Between 1949 and 2024, the average bull market in the S&P 500 (SNPINDEX: ^GSPC) lasted 67 months, or just over five and a half years. In contrast, bear markets lasted an average of just 12 months, and the shortest lasted just 33 days. Bear markets may not be fun, but fortunately, they're usually over relatively quickly. 2. Bear market losses pale in comparison to bull market gains Since bull markets usually last much longer than bear markets, it pays to stay invested. Yes, the declines you'll see in the value of your portfolio during a downturn are discouraging. The average decline during an S&P 500 bear market was 34%, and the 2008 financial crisis was particularly severe with a 59% slump, according to Charles Schwab. But if you stayed the course, held your stocks, and rode it out until the next bull market, you would have enjoyed healthy gains. Since 1949, the average bull market has seen a 265% gain. Of course, there's no guarantee future results will follow historical patterns, but investors can still take lessons from the stock market's behavior over long periods. Investors should remain optimistic. 3. You don't want to miss a bear market recovery One way investors commonly shoot themselves in the foot is by trying to anticipate what the economy or the stock market might do in the short term. Most people fail to grasp how quickly things can change on Wall Street, and the market can pivot long before you realize what's happened. Historically, the U.S. stock market has tended to roar back following a bear market. For example, after the S&P 500 hit its bottom on March 23, 2020, during the COVID-19 sell-off, the index surged 55% within just five months. In fact, during the five worst bear markets since 1929, the market returned an average of 70.9% in the first year after reaching its bottom. The tricky part is that it's impossible to know when a bottom has arrived. 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2 AI Stocks to Buy in June
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Eli Lilly vs. Novo Nordisk: Which Stock Is the Winner of the Weight-Loss Drug Boom?
Eli Lilly vs. Novo Nordisk: Which Stock Is the Winner of the Weight-Loss Drug Boom?

Globe and Mail

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Eli Lilly vs. Novo Nordisk: Which Stock Is the Winner of the Weight-Loss Drug Boom?

The global weight-loss drug market is experiencing exceptional growth, projected to expand from around $144.6 billion in 2023 to an estimated $381.5 billion by 2033. Two pharmaceutical giants, Eli Lilly (LLY) and Novo Nordisk (NVO), dominate this market. Both companies have created GLP-1 receptor agonists that have transformed obesity treatment: Eli Lilly's Mounjaro (tirzepatide) and Zepbound, and Novo Nordisk's Ozempic and Wegovy (semaglutide). Let's see which company is ahead of the game and has the best investment case right now. The Case for Eli Lilly Stock Valued at $684 billion, Eli Lilly has been a standout performer in the global pharmaceutical industry. Aside from its obesity treatments, it is well-known for developing groundbreaking treatments for autoimmune diseases, cancer, diabetes, Alzheimer's, and other conditions. LLY stock has fallen 6.4% year-to-date, compared to the S&P 500 Index's ($SPX) gain of 0.1%. Recently, Eli Lilly announced that Zepbound has demonstrated superior efficacy in weight loss compared to Novo Nordisk's Wegovy. The SURMOUNT-5 trial found that participants on Zepbound lost more body weight and waist circumference over 18 months than those on Wegovy. This superior efficacy is due to tirzepatide's dual action as a GLP-1 and GIP agonist, which boosts weight-loss effects. Financially, Eli Lilly reported a 45% increase in revenue in the first quarter of 2025, reaching $12.73 billion, thanks to strong sales from Mounjaro and Zepbound. Adjusted earnings increased 29% to $3.34 per share during the quarter. Mounjaro, in particular, saw a 113% year-over-year sales increase to $3.8 billion worldwide. Zepbound's sales increased threefold from the same quarter last year. Aside from the success of its weight-loss drugs, the company's non-incretin portfolio includes successful oncology, neuroscience, and immunology drugs, which are driving growth. The company anticipates 2025 revenue to be in the range of $58 billion to $61 billion, representing year-over-year growth of 28% to 35%. Eli Lilly has taken proactive measures to capitalize on the weight-loss drug boom. The company has handled supply chain issues more effectively than Novo Nordisk, resulting in improved product availability. Last year, the company launched Mounjaro in all major European markets and provided early stage access in China. In order to increase accessibility, the company has formed partnerships with telehealth providers and launched direct-to-consumer initiatives. Furthermore, Lilly's investment in orforglipron, an oral GLP-1 receptor agonist, has yielded encouraging results in Phase 3 studies. Patients lost significant weight, and the convenience of a pill form could transform obesity treatment, making it more accessible and appealing to a larger patient base. On Wall Street, Eli Lilly has earned an overall ' Strong Buy ' rating. Of the 25 analysts who cover the stock, 20 rate it a 'Strong Buy,' two a 'Moderate Buy,' and three recommend a 'Hold.' The average analyst price target of $991.46 suggests a 34.7% increase from current levels. Furthermore, the Street-high estimate of $1,190 implies that the stock could rally by up to 62% over the next year. The Case for Novo Nordisk Stock Valued at $311.7 billion, Novo Nordisk is a Denmark-based pharmaceutical company specializing primarily in diabetes care, obesity treatment, and other chronic disease therapies. Novo Nordisk's Ozempic and Wegovy have been instrumental in the company's growth. However, Eli Lilly's weight loss drugs have demonstrated superior efficacy, challenging Novo Nordisk's market dominance. Novo's stock has fallen nearly 20% year to date, compared to the overall market. In the first quarter of 2025, Novo Nordisk reported earnings per share of 6.53 DKK, in line with analyst expectations. Sales rose 18% year on year to 78.08 billion DKK, led by a 15% rise in Ozempic sales and an 83% increase in Wegovy sales. Despite these gains, the company faces significant challenges due to increased competition and shifting market dynamics. As a result, Novo Nordisk lowered its full-year guidance, projecting 2025 sales growth of 13% to 21%, significantly lower than Lilly's projections. Analysts who cover the stock expect Novo's revenue to grow by 25.5%, followed by earnings growth of 26%. While Eli Lilly's drugs have demonstrated superior efficacy, according to Leerink Partners analyst David Risinger, most people are unaware that Zepbound outperforms Wegovy. As a result, Novo continues to hold 65% of the market, while Lilly holds 34%. However, this may soon change. On Wall Street, Novo Nordisk stock has earned an overall ' Moderate Buy ' rating. Of the 18 analysts who cover the stock, eight rate it a 'Strong Buy,' seven say it is a 'Hold,' one says it is a 'Moderate Sell,' and two suggest a 'Strong Sell.' The average analyst price target of $101.93 suggests a 44% increase from current levels. Furthermore, the Street-high estimate of $160 implies that the stock could rally by up to 128% over the next year. The Verdict: Eli Lilly Takes the Lead Both Eli Lilly and Novo Nordisk continue to strengthen their incretin portfolios. However, based on clinical efficacy, market performance, strategic initiatives, and leadership stability, Eli Lilly currently has a competitive advantage over Novo Nordisk in the weight-loss drug market. Overall, Eli Lilly stock represents a better long-term investment.

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