5 Things to Know Before the Stock Market Opens

Eli Lilly (LLY) shares are jumping in premarket trading after strong second-quarter results and a guidance lift; Warner Bros. Discovery (WBD) shares are tumbling after a massive write-down in its cable networks’ value led to an almost $10 billion quarterly loss; Alphabet’s (GOOGL) Google and Meta Platforms (META) reportedly collaborated in secret to target Instagram advertisements to teenagers on YouTube; Boeing’s (BA) new Chief Executive Officer (CEO) Kelly Ortberg takes over the helm of the embattled plane maker from Dave Calhoun today; and shares of dating site Bumble (BMBL) are plunging after it cut its full-year app revenue growth outlook. U.S. stock futures are little changed after shares closed lower Wednesday. Here’s what investors need to know today.

1. Eli Lilly Stock Pops on Q2 Beat, Guidance Lift

Eli Lilly (LLY) shares are surging 10% in premarket trading after the drugmaker reported second-quarter results that easily beat forecasts and boosted its 2024 outlook on the back of booming demand for its weight-loss drugs Mounjaro and Zepbound. It reported revenue of $11.3 billion, up 36% year-over-year and well above analysts’ forecasts of $9.97 billion, while earnings per share (EPS) of $3.28 was also a massive beat. Lilly said it was boosting its 2024 revenue guidance by $3 billion to the range of $45.4 billion to $46.6 billion, and its EPS projection to $15.10 to $15.60 from $13.05 to $13.55 previously. On Wednesday, American depositary receipts (ADRs) of rival Novo Nordisk (NVO), maker of the Ozempic and Wegovy weight-loss drugs, slumped after the Danish firm lowered its operating profit guidance even as it upped its sales outlook for the year.

2. Warner Bros. Discovery Tumbles as Cord-Cutting Spurs $10B Quarterly Loss

Warner Bros. Discovery (WBD) shares are plunging 10% in premarket trading after the entertainment company recorded an almost $10 billion second-quarter loss, hit by a write-down in the value of its cable networks. The company posted a $9.1 billion non-cash goodwill impairment charge from its cable networks segment, showing that CNN and TNT,  among others, continue to be disrupted by streaming services like Netflix (NFLX). The company’s fortunes don’t look much brighter, either, after its TNT Sports unit lost out on the lucrative 11-year media rights deal to show NBA games last month. Warner Bros. Discovery’s loss for its second-quarter widened to $9.99 billion from $1.24 billion in the same period last year, while revenue fell to $9.71 billion from $10.36 billion. Analysts polled by Visible Alpha anticipated a loss of just $562.7 million on $10.17 billion in revenue.

3. Google and Meta Reportedly Had ‘Secret Deal’ to Sell Teens Ads

Alphabet’s (GOOGL) Google and Meta Platforms (META) reportedly had a “secret deal” to target Instagram advertisements to teenagers on YouTube. According to the Financial Times, Google had a marketing project aiming to pull 13- to 17-year-old YouTube users into Meta’s Instagram, circumventing the search giant’s rules barring personalized ads to those under 18, the report said. The companies partnered with Spark Foundry for a pilot marketing program in Canada between February and April, and then had a trial in the U.S. in May, with plans to expand internationally and also promote Meta’s Facebook platform, people familiar with the matter said. Shares of Alphabet and Meta are little changed in premarket trading.

4. Boeing’s New CEO Ortberg Starts at Helm of Troubled Plane Maker

Boeing’s (BA) new Chief Executive Officer (CEO) Kelly Ortberg, a former engineer and CEO of Rockwell Collins, takes over the helm of the troubled aircraft maker from today onwards, replacing outgoing CEO Dave Calhoun. Ortberg will be overseeing the company as it comes off a massive second-quarter loss and navigates safety incidents, tense Congressional testimony, investigations from regulators and law enforcement, and a guilty plea for defrauding the federal government. Boeing planes have been involved in a growing number of safety mishaps ever since a door plug on an Alaska Airlines Boeing 737 Max 9 plane blew out in midair in January. Boeing shares are little changed in premarket trading.

5. Bumble Tumbles as Dating Site Slashes 2024 App Revenue Outlook

Bumble (BMBL) shares are tumbling 40% in premarket trading after the online dating operator slashed its 2024 app revenue forecast to between 1.5% and 2.5% year-over-year growth from a range of 9% to 11% previously. JPMorgan analysts downgraded the stock to “neutral” from “overweight,” noting that Bumble’s app relaunch in May, which included new features like photo insights, didn’t translate to new users in the U.S. or help with monetization. “We continue to believe Bumble offers a differentiated, women’s first experience, but we are moving from Overweight to Neutral-rated while the company works through its strategic reset,” the broker said.