"Shares of Novo Nordisk A/S ( NYSE: NVO) dropped 1.9%today, closing at $48.25, just a whisker above the 52-week low of $45.05. Sometimes we see a divergence in share price and sentiment, but with Novo Nordisk they're actually well correlated. Discussion on Reddit has remained uniformly bearish throughout November. Novo Nordisk is trading more than 50% below its 52-week high, a stunning collapse for a company that was once viewed as the premier play on the obesity treatment revolution."
"While not the only reason, it's easy to see a notable downward trend in Google Trends for both of Novo Nordisk's premier GLP-1 products, Ozempic and Wegovy Despite strong underlying fundamentals like a 71.5% return on equity and huge 32.9% net income margin, retail traders are persistently skeptical about the Danish drugmaker's future. Activity on r/WallStreetBets has been consistently negative. Sentiment scores have ranged from a low of 18, to only as high as 30 this moth."
Shares of Novo Nordisk A/S fell 1.9% to close at $48.25, trading close to a 52-week low of $45.05 and more than 50% below its 52-week high. Reddit sentiment remained uniformly bearish throughout November, with r/WallStreetBets sentiment scores ranging from 18 to 30 and peak activity on November 10. Google Trends shows a notable downward trend for Ozempic and Wegovy. Strong financial metrics include a 71.5% return on equity and a 32.9% net income margin, but earnings declined 26.5% year-over-year and revenue growth slowed to 5.1% YoY. Competitive pressure from Eli Lilly’s Zepbound has intensified. The stock trades at a forward P/E of 11.99, and two of eleven analysts rate it a sell.
Read at 24/7 Wall St.
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