Phase 3 Success Sparks a Biotech Rally, AI Capacity Expands, and Earnings Misses Shake Confidence

A late-stage clinical win fueled a sharp biotech rally, while AI-driven capacity expansion reinforced confidence in semiconductor demand.

Elsewhere, disappointing earnings results unsettled investors and weighed on sentiment across several names.

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U.S. stocks rebounded on Tuesday as technology shares led a recovery from the prior session’s sell-off, with AMD surging after announcing an expanded AI chip deal with Meta. Investors also found support in solid earnings from Home Depot, while markets stabilized despite ongoing trade uncertainty and tariff headlines.

Eli Lilly (NYSE: LLY) just launched a new version of Zepbound that packs a full month of doses into a single pen. Patients previously needed a separate device for each weekly injection. Now one pen handles all four. It is available directly through Lilly's consumer platform starting at $299 per month.

This is a small product change with big strategic implications. Convenience drives adherence, and adherence drives revenue.

Simpler Means Stickier

Weight loss drugs only work if patients keep taking them. Every friction point in the process, opening a new device, managing multiple pens, and picking up refills, creates an opportunity to stop. Lilly just removed one of those friction points entirely.

You think about why so many health products fail over time, and it almost always comes down to ease of use. Lilly clearly thinks the same way and is designing around it.

LillyDirect Is the Growth Engine

The new pen launches on LillyDirect, Lilly's direct-to-consumer platform that has been central to Zepbound's explosive growth. Selling directly to patients cuts out pharmacy complexity and puts Lilly in control of the entire experience.

Zepbound brought in $4.2 billion in U.S. revenue last quarter alone, up 122% from the year before. Lilly has already taken the majority market share from its closest competitor in weight loss.

You see a company that is not just winning on drug efficacy but on delivery, convenience, and distribution. That combination is what turns a blockbuster into a franchise.

Warner Bros Discovery (NASDAQ: WBD) is sitting at the center of the biggest bidding war Hollywood has seen in years. Paramount Skydance just submitted a revised offer that tops its previous bid, while Netflix's existing deal remains in place with a shareholder vote scheduled for March 20.

Both buyers want the same thing. Control of one of the most valuable content libraries ever assembled.

Two Very Different Futures

Netflix wants Warner Bros' studio and streaming assets and would spin off the cable side before closing. Paramount wants the whole company, cable included, and believes those assets still hold value even as the industry moves away from traditional TV.

You can see two completely different visions for what Warner Bros will become next. One path is pure streaming. The other tries to hold the old and new together.

The Pressure Is Coming From Every Direction

An activist investor has built a significant position in Warner Bros and is publicly pushing the board to take Paramount's offer seriously. The current board still recommends the Netflix deal, but shareholder pressure is mounting fast.

If Netflix's deal gets voted down on March 20, the entire landscape shifts. Your understanding of this story changes when you realize the board may not have the final say.

You do not get many moments where a single deal can redraw the entire power map of an industry. This is one of them.

For decades, one type of investment was reserved for the ultra-wealthy.

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Nike Inc (NYSE: NKE) just got a new neighbor in its own backyard. Anta Sports, China's largest sportswear company with annual sales of over $10 billion, opened its first North American store in Beverly Hills earlier this month. The launch event featured two former Nike athletes who now wear Anta.

That is not subtle. This is the most direct challenge Nike has faced from a Chinese competitor on American soil.

The Talent Drain Stings

Anta has signed endorsement deals with athletes who once defined Nike Basketball. You watch Nike lose marquee athletes to a brand most Americans have never heard of, and it raises a real question. Is Nike's grip on athlete culture loosening?

This Is Not Just a Shoe Company

Anta Sports has quietly assembled one of the most impressive brand portfolios in global sportswear. It owns the Fila trademark in greater China, acquired Jack Wolfskin, and recently bought a 29% stake in Puma.

You can dismiss one store. But a $10 billion company with elite athletes, premium brands, and an Olympic pedigree opening on Rodeo Drive is not testing the water. How Nike responds in the coming months will say a lot about whether the brand still sets the pace or is starting to play defense.

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Palvella Therapeutics Inc [PVLA] $120.41 (+37.08%)

Palvella surged after reporting positive Phase 3 results for its QTORIN rapamycin gel, meeting all primary and secondary endpoints in a rare lymphatic malformation study.

Vir Biotechnology Inc [VIR] $9.49 (+27.73%)

Vir jumped after posting blockbuster fourth-quarter sales and announcing a major collaboration with Astellas to advance its prostate cancer therapy VIR-5500.

AXT, Inc [AXTI] $35.08 (+23.39%)

AXT rose after announcing a 25% capacity expansion for its indium phosphide wafers to meet surging AI and data center demand.

Claritev Corporation [CTEV] $13.60 (-41.46%)

Claritev fell after reporting a wider-than-expected quarterly loss, marking another negative earnings surprise despite topping revenue estimates.

DMC Global Inc [BOOM] $5.84 (-32.95%)

DMC Global dropped after posting a much larger-than-expected quarterly loss and year-over-year revenue decline, disappointing investors.

Shoals Technologies Group Inc [SHLS] $6.84 (-30.96%)

Shoals fell after missing quarterly earnings estimates, dampening sentiment despite stronger-than-expected revenue growth.

Big Oil may be facing its biggest challenge yet.

A breakthrough tied to an MIT-trained scientist could unlock a fuel source that’s virtually unlimited.

According to the U.S. Department of Energy, it could last billions of years.

Once operational, the fuel itself costs nothing.

That’s why this story matters now.

Get the full details here.

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— Adam G.
Elite Trade Club

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