PayPal, Eli Lilly, Novo Nordisk, and Roblox: Stock Market Weekly Digest (7-11 August)
11.08.2023
4 minutes for reading
PayPal Holdings Inc., Eli Lilly and Company, Novo Nordisk A/S, and Roblox Corporation were in the spotlight this week. Let’s find out how their stocks reacted to the latest developments.
PayPal launches its own stablecoin
PayPal Holdings Inc., the US financial company that owns the payment system PayPal, published a press release on Monday 7 August about the launch of its own stablecoin, PayPal USD. It is pegged to the US dollar at a 1:1 ratio and is issued by Paxos Trust Company.
"The shift towards digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the US dollar," said Dan Schulman, CEO of PayPal Holdings Inc.
It’s important to note that stablecoins are cryptocurrencies that typically maintain a relatively consistent or steady value due to their connection to fiat currencies or alternative assets such as commodities.
Users of the PayPal platform will be able to transfer PayPal USD between accounts within the payment system and compatible external wallets, make person-to-person payments, and utilise it to pay for purchases. In addition, they will have the option to convert the stablecoin into a range of cryptocurrencies supported by the PayPal platform.
PayPal Holdings Inc. (NASDAQ: PYPL) stock reacted cautiously to the news on Monday, rising by 2.66% to 64.42 USD per unit. Notably, the value of the securities decreased by 15.18% last week following the release of the quarterly reports.
Eli Lilly stock rises following Q2 2023 report
American pharmaceutical giant Eli Lilly and Company reported its Q2 2023 results on Tuesday 8 August. Revenue for April to June increased by 28.11% from the corresponding period of last year, reaching 8.31 billion USD, and net profit experienced robust growth of 85.09%, reaching 1.76 billion USD or 1.95 USD per share.
Experts surveyed by FactSet had estimated the adjusted Q2 earnings of Eli Lilly and Company at an average of 1.98 USD per share, with anticipated revenue of 7.58 billion USD.
In addition, the company’s management improved its earnings forecast for the full-year 2023, raising it from 8.65-8.85 USD per share to 9.7-9.9 USD per share, and its revenue projections from 31.2-31.7 billion USD to 33.4-33.9 billion USD. On the same day, following the release of the quarterly report, Eli Lilly and Company (NYSE: LLY) shares gained 14.87%, reaching 521.60 USD. It is worth noting that the stock has been rising for five consecutive trading sessions, adding 17.16% over this period.
Novo Nordisk stock soars by 17%
On Tuesday, Danish pharmaceutical company Novo Nordisk A/S announced positive results from trials of its Wegovy (semaglutide) obesity treatment. The trials have shown that it reduces the risk of heart attacks and strokes by 20%.
The study involved 17,604 adults aged 45 years and older who had excess weight or obesity and had also been diagnosed with cardiovascular diseases.
"People living with obesity have an increased risk of cardiovascular disease but to date, there are no approved weight management medications proven to deliver effective weight management while also reducing the risk of heart attack, stroke, or cardiovascular death. Therefore, we are very excited about the results from SELECT showing that semaglutide 2.4 mg reduces the risk of cardiovascular events," said Martin Holst Lange, executive vice president for development at Novo Nordisk.
On 8 August, this news sent Novo Nordisk A/S (NYSE: NVO) stock up, rising 17.23% to 189.17 USD per unit. Such growth positioned the pharmaceutical company as the second-largest by market capitalisation in Europe, following LVMH Moet Hennessy Louis Vuitton SE.
Roblox stock declines by 22%
On Wednesday 9 August, the prominent player in the gaming industry, Roblox Corporation (NYSE: RBLX), released its Q2 2023 report. As a result, its stock plummeted by 21.94% to 29.46 USD per unit after the trading session concluded.
The company’s revenue showed an increase of 15.15%, reaching 680.77 million USD. At the same time, net loss rose 60.27% to 282.78 million USD or 0.46 USD per share. Experts had projected that Roblox Corporation’s quarterly revenue would reach 665.9 million USD, with EPS at 0.44 USD.
The average number of daily active users (DAU) on the Roblox online gaming platform amounted to 65.5 million in Q2, marking a 25% increase compared to the same period in 2022. However, the average bookings per daily active user (ABPDAU) experienced a 3% decline, reaching 11.92 USD.
Summing up
PayPal Holdings Inc. launched its own stablecoin known as PayPal USD this week. The news did not lead to an immediate surge in the corporation’s stock prices.
The stocks of notable pharmaceutical players, namely Eli Lilly and Company and Novo Nordisk A/S, saw a notable 17% increase in value. This surge can be attributed to robust quarterly reports and positive trial outcomes.
Roblox Corporation reported its Q2 2023 results, revealing a significant 60% increase in loss. Consequently, the stock prices tumbled by 22%.
are complex instruments and come with a high 
of losing 
rapidly due to 
. 72.87% of retail investor accounts lose 
when trading 
with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high