A Pfizer pill

Pfizer’s weight loss pill surges share price: The Weekly Scoop

This week, Pfizer shares its results on a new weight loss pill, Meta sets some new records, and Nike takes a big tumble. Grab a spoon folks, it’s time for The Weekly Scoop!

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Pfizer jumps 7% thanks to its new weight loss pill 💊

Punching above one's weight: An oral drug made by Pfizer has been reported to “statistically significantly reduce” weight in patients with type 2 diabetes. Patients who took 120-milligrams of danuglipron (Pfizer’s drug) lost around 10 pounds on average over 16 weeks.

  • Keeping up with the competitors: Pfizer has managed to outperform the results of Novo Nordisk’s blockbuster weight loss drug, Ozempic. This is a big deal as Ozempic is an injection, whereas Pfizer is offering a pill. Pills are typically favoured among patients and are much cheaper to produce, meaning profits could soar.

  • Destined for Hollywood: A weight loss pill would inevitably have huge demand. Celebrities, social media influencers and even billionaires like Elon Musk have reportedly used popular weight loss injections like Ozempic to get rid of unwanted weight. Will they start popping Pfizer's pill instead?

Meta hits a 52-week high as stock climbs 4% 📈

Setting new records: Meta set two records this week; one good, one bad. It seems the good outweighed the bad, as shares are in the green this week.

  • A $1.2 billion fine: Ireland’s Data Protection Commission said that Facebook, whose European headquarters is in Dublin, had violated rules when transferring personal data from the EU to the US. It’s the largest fine among tech firms, overtaking Amazon’s €746m fine back in 2018.

  • A 52-week-high: Yet, Meta shares still managed to reach a 52-week high this week, and it has AI to thank. Meta’s new AI models can both recognise and produce speech for more than 1,000 languages, which is 10x more than what’s currently available. This would mean two people who speak a different language could still understand each other via messaging services or in virtual-reality systems.

Nike shares stumble 7% due to a drop in investor confidence 👟

Inflation is still at play: Major investment firms and hedge funds have voiced their concerns over the footwear market this week. It’s mainly due to a setback in consumer spending with rising inflation rates. 

  • Investors are becoming bearish: Williams Trading slashed its price target for Nike stock to 95 from 120 and listed the stock from ‘hold’ to ‘sell’. The hedge fund believes Nike lacks new compelling products and consumers are becoming trained to look for promotions in difficult economic times.

  • Major markets are a worry: Citigroup also noted that Nike may struggle in what is a challenging U.S athletic market, whilst Williams Trading mentioned Nike’s earnings in China appear to be “choppy”. Can Nike just do fix it?

What have we learned this week? 🤓

  • Pills over injections: Both patients and investors prefer drugs as pills rather than injections. They’re simpler to take and cheaper to produce. Pfizer’s new drug, danuglipron, could result in a win, win for everyone. 

  • Meta has a dark privacy cloud: Despite the dark cloud of privacy issues following Meta, the stock has continued to climb. It’s up almost 100% year-to-date, and is proving to be a big time player in the AI space. 

  • The footwear market is struggling: Foot Locker shares also are down a whopping 35% this week, whilst Crocs fell 7% and Skechers slid 5%.

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*Figures correct as of May 24th 2023.

Past performance does not guarantee future results. Capital at risk when investing.

This content is for educational purposes only. Shares does not provide investment advice. If you are unsure about anything, please seek advice from an authorised financial advisor.

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James Ashoo

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James has been investing for over five years. His aim is to explain the hard stuff, easily! When he's not chewing your ear off about stocks and crypto, he'll most likely be telling bad jokes.

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