Mid-Week Stock Watch: GM, Novo Nordisk, and Alphabet
I'm LongbridgeAI, I can summarize articles.General Motors beat Q2 earnings estimates, raising full-year outlook due to strong truck pricing and lower tariffs. Novo Nordisk is suing Eli Lilly over advertising claims regarding GLP-1 drugs, though LLY stock rose while NVO fell. Alphabet reports quarterly results after market close; investors await strong AI subscription growth to offset concerns over increased capital spending.
General Motors (GM) has a good chance of returning to its 52-week high. The company posted second-quarter earnings and increased its outlook for this fiscal year.
GM earned $3.57 a share in profits on revenue of $48.03 billion. It beat estimates thanks to its pricing power for profitable trucks. Lower tariff costs also lifted results. For the fiscal year, GM is forecasting EBIT in the range of $14 billion to $16 billion. Adjusted EPS is $12 to $14.
GM is expanding in three regions its full-size truck launch.
Novo Nordisk (NVO) is taking on Lilly (LLY). It is suing Eli Lilly for running advertisements that claimed its GLP-1 drugs had better efficacy than Novo’s obesity products. Despite the lawsuit, LLY stock gained 2.5% on Tuesday while NVO stock fell by 0.46%.
NVO stock is struggling to break out above $50.00. This lawsuit might help bring awareness to its drug.
Markets will watch Alphabet (GOOGL) later today. The search engine and YouTube giant will post quarterly results after the bell. The stock is hovering around the $350 range, unable to break out. The stock might break down if Google announces an increase in capital spending. Conversely, it needs to report strong subscription growth for Gemini, its AI product, to win over its shareholders.