In this article, we will discuss the 13 Reddit Stocks with the Highest Upside Potential.
In the global markets weekly update dated August 8, released by T.Rowe Price, one of the several focus areas was the increased likelihood of the US Fed reducing rates at its next meeting in September. Several Fed officials have noted that rate cuts may be in the near future, including Federal Reserve Bank of San Francisco President Mary Daly.
Current Trends Impacting Broader US Markets
Morningstar highlighted that, at the current premium, the broader market is not offering any margin of safety to compensate investors for the risks. One of the critical near-term risks is the current trade and tariff negotiations. This earnings season, it was all about AI, added Morningstar. The firm’s largest fair value increases were concentrated in the IT and communications sectors. This is because these are most directly linked to manufacturing the hardware to run AI, hosting AI on the cloud platforms, or are still in the initial stages of utilizing AI.
However, financial services have also seen a strong increase in valuations, according to Morningstar. On the other hand, strong reductions to its fair values were concentrated in the healthcare sector. This is because large pharma companies and healthcare insurance organisations have come under increased pressure.
Amidst such trends, we will now have a look at the 13 Reddit Stocks with the Highest Upside Potential.
A large computer terminal full of complex calculations tracking the company’s cash flow and investment management decisions.
Our Methodology
To list the 13 Reddit Stocks with the Highest Upside Potential, we sifted through Reddit threads and narrowed our list to the 13 best stocks by selecting the ones that analysts see upside to. Next, we chose the ones popular among hedge funds. We also mentioned hedge fund sentiments around each stock, as of Q1 2025. Finally, the stocks were arranged in ascending order of their hedge fund sentiments.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Note: All the data is as of August 10
13 Reddit Stocks with the Highest Upside Potential
13. The Wendy’s Company (NASDAQ:WEN)
Number of Hedge Fund Holders: 31
Average Upside Potential: ~29%
The Wendy’s Company (NASDAQ:WEN) is one of the Reddit Stocks with the Highest Upside Potential. On August 8, the company released its unaudited results for Q2 2025, with international systemwide sales increasing 8.7% amidst growth throughout regions. In the quarter, the company expanded its global footprint, adding 44 new restaurants and bringing its total additions to 118 in H1 2025. In Q2 2025, The Wendy’s Company (NASDAQ:WEN)’s operating profit came in at $104.3 million compared to $99.5 million in Q2 2024, reflecting a growth of 4.8% YoY.
Notably, the improvement in operating profit was mainly because of a decline in The Wendy’s Company (NASDAQ:WEN)’s investment in advertising spend, reduced reorganization and realignment costs, as well as lower general and administrative expenses. These were partially mitigated by a decline in franchise royalty revenue and a reduction in US Company-operated restaurant margin. For FY 2025, the company expects global net unit growth of 2% – 3%, and capital expenditures and franchise development fund investments in the range of $165 million – $175 million.
12. Strategy Incorporated (NASDAQ:MSTR)
Number of Hedge Fund Holders: 33
Average Upside Potential: ~40.8%
MicroStrategy Incorporated, doing business as, Strategy Incorporated (NASDAQ:MSTR) is one of the Reddit Stocks with the Highest Upside Potential. On July 31, the company announced its Q2 2025 results, with net income coming at $10.0 billion. In Q2 2025 and into July, Strategy Incorporated (NASDAQ:MSTR) delivered another period of strong execution and growth. The company expanded its bitcoin holdings to 628,791 bitcoins, garnered more than $10 billion via its ATM programs and IPOs, and witnessed increased institutional and retail demand for the securities.
Strategy Incorporated (NASDAQ:MSTR)’s operating income for Q2 2025 came in at ~$14.03 billion, a 7,106.4% increase YoY. Operating income consisted of an unrealized gain on the company’s digital assets, which amounted to $14.0 billion. Through July 29, the company’s Bitcoin holdings make up for 3% of all the Bitcoin ever to be in existence. This places the company as the most dominant player in the Bitcoin Treasury Company space. Strategy Incorporated (NASDAQ:MSTR) raised an impressive $18.3 billion in capital YTD, accounting for 81% of the total capital it raised in all of last year combined.
Greenlight Capital, an investment management firm, released its Q4 2024 investor letter. Here is what the fund said:
“There is an open debate as to whether Bitcoin will at some point enter the mainstream as an official currency. In fact, there is a bill before Congress for the U.S. to establish a “Strategic Bitcoin Reserve” and buy one million Bitcoins over five years. The bill’s purpose appears to be the use of public funds to ramp up the price of Bitcoin, thereby enhancing the wealth of existing Bitcoin holders. This seems a dubious use of taxpayer funds, but the new administration has a lot of Bitcoin-owning supporters, so it might happen. More likely, cooler heads will decide that the government should not borrow another trillion dollars in the bond market to speculate in Bitcoin and that there is, in fact, nothing strategic about doing so.
One of the biggest owners of Bitcoin is MicroStrategy Incorporated (NASDAQ:MSTR). While MSTR owns a small software business, its principal pursuit is buying Bitcoin. In practice, MSTR is an investment company that buys and holds Bitcoin.2 MSTR trades at a large premium to the value of the underlying Bitcoin it holds. The idea is to raise money from new investors at a premium and use the proceeds to buy more Bitcoin. Since the Bitcoin that MSTR buys costs less than the Bitcoin-implied value of MSTR’s stock, the new investment is dilutive to new investors but accretive to existing investors. MSTR’s promoters have labeled the return to existing investors created by this scheme the “Bitcoin yield”. As Bitcoin itself yields nothing, the Bitcoin yield is simply a measure of the Ponzi finance’s effectiveness. Lately, it has been pretty effective.”
11. Archer Aviation Inc. (NYSE:ACHR)
Number of Hedge Fund Holders: 33
Average Upside Potential: ~33.7%
Archer Aviation Inc. (NYSE:ACHR) is one of the Reddit Stocks with the Highest Upside Potential. On August 7, the company announced 2 strategic acquisitions to accelerate the development of next-generation defense aircraft. The company acquired a patent portfolio and hired key employees from Overair, a spin-off of Karem Aircraft. Archer Aviation Inc. (NYSE:ACHR) also acquired key composite manufacturing assets and a ~60,000 square foot manufacturing facility from Mission Critical Composites, which is a specialized defense composite manufacturer in Southern California.
Notably, these assets allow Archer Aviation Inc. (NYSE:ACHR) to bring core composite fabrication capabilities in-house, aiding the defense program’s needs for rapid prototyping and iteration. Notably, both acquisitions come on the back of robust industry momentum amidst the recent announcement of a budget request allocation by the Pentagon of $13.4 billion for autonomous military systems. The acquisitions build on Archer Aviation Inc. (NYSE:ACHR)’s earlier announcement of a strategic alliance with Anduril focused on co-developing hybrid, autonomous VTOL military aircraft.
10. Crocs, Inc. (NASDAQ:CROX)
Number of Hedge Fund Holders: 36
Average Upside Potential: ~22.2%
Crocs, Inc. (NASDAQ:CROX) is one of the Reddit Stocks with the Highest Upside Potential. On August 8, Bank of America Securities analyst Christopher Nardone reiterated a “Buy” rating on the company’s stock and set a price objective of $99.00. The analyst’s rating is backed by a combination of factors demonstrating potential for future growth amidst the current challenges. As per the analyst, while Q3 2025 guidance was disappointing, there remains an optimistic outlook for Crocs, Inc. (NASDAQ:CROX)’s fundamentals to witness improvement beyond this period.
Furthermore, the international segment demonstrated a promising growth in Q2 2025, and the analyst opines that a low double-digit growth rate remains achievable in the upcoming quarters. Even though there are short-term pressures due to the tariffs and changes in product mix, the analyst opines that the gross margin is expected to stay strong because of Crocs, Inc. (NASDAQ:CROX)’s emphasis on controlling promotions. This strategic approach is expected to support a healthy FCF profile, added Nardone. While North American sales are projected to encounter challenges, the analyst anticipates gradual improvement on the back of new product innovations as well as strategic adjustments to offset tariff impacts.
Artisan Partners, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Among our top detractors were Halozyme, Crocs, Inc. (NASDAQ:CROX) and Novanta. Crocs designs, develops, manufactures and distributes casual footwear and accessories for men, women and children. The company invented the molded plastic clog in 2002 and turned it into a multibillion-dollar (USD) global revenue producer. We believe expansion opportunities outside the US, demand from new product introductions (including from recently acquired Hey Dude) and distribution pushes within the direct-to-consumer and wholesale channels will drive greater-than-expected revenue growth. We had expected the performance of its HeyDude brand to have already bottomed, but forward guidance continues to indicate its turnaround efforts, driven by a new divisional leader, will take longer than expected. We maintained our position as we believe the market underappreciates the longer term profit cycle.”
9. Lionsgate Studios Corp. (NYSE:LION)
Number of Hedge Fund Holders: 45
Average Upside Potential: ~38.2%
Lionsgate Studios Corp. (NYSE:LION) is one of the Reddit Stocks with the Highest Upside Potential. On August 7, the company released results for Q1 2026, during which Lions Gate Entertainment Corp. fully separated its Lionsgate and STARZ businesses. In the post-separation transitional year for the studio, Lionsgate Studios Corp. (NYSE:LION) continues to take numerous steps toward returning to strong growth in FY 2027.
Lionsgate Studios Corp. (NYSE:LION) has 3 major film tentpoles set for release in the coming fiscal year, and expects to double its scripted television series deliveries next year. Furthermore, it continues to innovate its brands throughout new businesses and onto new platforms. Lionsgate Studios Corp. (NYSE:LION) is also creating fresh revenue streams for its film and television library, contributing to another record trailing 12-month revenue performance in the quarter and improving visibility into the year ahead.
Notably, trailing 12-month library revenue rose 12% from the prior-year quarter to sit at a record $989 million, resulting in the 3rd straight quarter of record trailing 12-month library revenue.
8. lululemon athletica inc. (NASDAQ:LULU)
Number of Hedge Fund Holders: 48
Average Upside Potential: ~47.9%
lululemon athletica inc. (NASDAQ:LULU) is one of the Reddit Stocks with the Highest Upside Potential. On July 29, Piper Sandler reduced the price target on the company’s stock to $200 from $270, while keeping a “Neutral” rating, as reported by The Fly. As per the firm, the fall in lululemon athletica inc. (NASDAQ:LULU)’s shares this year was because of a correction in the multiple. In Q1 2025, the company achieved growth throughout its channels, categories, and markets, including the US, demonstrating the continued strength and agility of its business model.
Amidst the dynamic macro environment, lululemon athletica inc. (NASDAQ:LULU) plans to leverage its robust financial position and competitive advantages to play offense, while it continues to invest in growth opportunities. In Q1 2025, its net revenue rose 7% to $2.4 billion, or 8% on a constant dollar basis, with the Americas net revenue rising 3% and the International net revenue increasing 19%. For Q2 2025, lululemon athletica inc. (NASDAQ:LULU) anticipates net revenue of between $2.535 billion – $2.560 billion, reflecting growth of 7% – 8%.
RGA Investment Advisors, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“Late in the quarter, we purchased shares in Lululemon athletica inc. (NASDAQ:LULU), despite uncertainty about the tariff situation. Many of you are familiar with the brand. Lulu is a leading athleisure brand and though competition has increased from upstart offerings like Vuori, Alo and Fabletics, the company has continued to maintain relevance and perform admirably. These upstarts have varied approaches, but in aggregate, they have won share with a combination of faster, more tasteful fashion and cheaper prices. Importantly, this share has predominantly come from Nike–the 10,000 pound gorilla of the industry that continues to see negative topline growth. Even within the competitive landscape, it is notable that Vuori and Alo enthusiasts still consider Lulu core to their wardrobe, given the demonstrable quality advantage of the company’s proprietary fabrics. Although Lulu has benefited from dominance in fashion, its core calling has been performance and that segment of the market remains unquestioned.
For Lulu, U.S. Women’s in particular has slowed, though the company continues to drive growth in the men’s market, while expanding geographically to China and Europe. The slowdown in women’s seems tied both to broader weakness in apparel, particularly athleisure, and to rising competitive pressure – factors that have contributed to investor caution.. Meanwhile, China alone holds the potential to double the scale of Lulu’s business should the company attain a similar degree of resonance as Nike. We are not expecting this to be the case, though it is a notable source of potential upside…” (Click here to read the full text)
7. Gartner, Inc. (NYSE:IT)
Number of Hedge Fund Holders: 51
Average Upside Potential: ~31.4%
Gartner, Inc. (NYSE:IT) is one of the Reddit Stocks with the Highest Upside Potential. On August 5, the company posted Q2 2025 financial results, with revenue, adjusted EBITDA, adjusted EPS, and FCF ahead of expectations. Gartner, Inc. (NYSE:IT) noted that the challenging Q1 2025 selling environment, which was impacted by DOGE and tariff-affected industry spending changes, continued through Q2 2025. With the help of disciplined expense management, Gartner, Inc. (NYSE:IT) plans to continue to deliver healthy profitability and FCF.
Since the end of Q1 2025, Gartner, Inc. (NYSE:IT) increased its pace of share repurchases. The company purchased $274 million in Q2 2025 and an additional $282 million since the end of Q2 2025. Gartner, Inc. (NYSE:IT) expects 2025 adjusted EPS of at least $11.75, reflecting an increase from last quarter. For 2025, it anticipates FCF of at least $1.145 billion. The company expects Insights revenue of at least $5.255 billion, reflecting FX-neutral growth of ~2%. This demonstrates the subscription Insights revenue growth of ~4%.
Gartner, Inc. (NYSE:IT) anticipates ~$210 million of non-subscription revenue and conferences revenue of at least $625 million, reflecting FX-neutral growth of ~5%. Baron Funds, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“Modest declines from the Fund’s sizable positions in Gartner, Inc. (NYSE:IT) and Roper Technologies, Inc. also contributed to relative weakness in the sector. Syndicated research provider Gartner was negatively impacted by reductions in government spending in its public sector business. We estimate U.S. federal exposure accounts for about 5% of Gartner’s total research contract value, with about half from the Department of Defense and intelligence organizations, and half from civilian agencies. While federal budget scrutiny remains high, we believe Gartner’s services deliver significant value to users, including the potential for hard dollar savings. Its private sector business appears well positioned for sustained growth, and management is adept at exercising cost controls to support margins and free cash flow generation. The company’s balance sheet is in excellent shape, and we expect management to take advantage of this drawdown through aggressive share repurchases.”
6. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holders: 60
Average Upside Potential: ~27.4%
Novo Nordisk A/S (NYSE:NVO) is one of the Reddit Stocks with the Highest Upside Potential. On August 6, the company stated that it delivered 18% sales growth in H1 2025. The company has lowered its full-year outlook because of lower growth expectations for its GLP-1 treatments in H2 2025. Therefore, it has been taking measures to sharpen its commercial execution further, and ensure efficiencies in its cost base while continuing to make investments in future growth. With over 1 billion people living with obesity globally, which includes over 100 million living in the US, and only a few million on treatment, Novo Nordisk A/S (NYSE:NVO) expects to maximise the strong growth opportunities, thanks to the healthy product portfolio and future pipeline.
Novo Nordisk A/S (NYSE:NVO) highlighted that the sales within Diabetes and Obesity care rose 16% in Danish kroner to DKK 145.4 billion (and 18% at CER), mainly due to the Obesity care growth of 56% in Danish kroner to DKK 38.8 billion (and 58% at CER) and GLP-1 diabetes sales increasing 8% in Danish kroner (10% at CER). Within R&D, Novo Nordisk A/S (NYSE:NVO) plans to advance subcutaneous and oral amycretin into phase 3 development in weight management on the basis of completed clinical studies during Q1 2025. For FY 2025, the sales growth is anticipated to be 8% – 14% at CER, and operating profit growth is projected to be 10% – 16% at CER.
ClearBridge Investments, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“We initiated a new position in Novo Nordisk A/S (NYSE:NVO), the global leader in diabetes care and one of two dominant players in the fast-growing GLP-1 diabetes and obesity drug market. A slowdown in prescriptions for Novo’s GLP-1 drugs, combined with confusion surrounding a clinical trial of its next-generation candidate, CagriSema, caused a significant pullback in the stock. We saw this as a buying opportunity. We believe the GLP-1 market remains vast and that Novo (alongside Eli Lilly) is well-positioned to maintain a duopolistic structure for years to come, given the complexity of manufacturing, differentiated intellectual property and brand strength. We also expect growth to reaccelerate as supply ramps up following its acquisition of Catalent and as regulators crack down on unlicensed compounders.”
5. The Trade Desk, Inc. (NASDAQ:TTD)
Number of Hedge Fund Holders: 61
Average Upside Potential: ~47.5%
The Trade Desk, Inc. (NASDAQ:TTD) is one of the Reddit Stocks with the Highest Upside Potential. On August 8, BTIG downgraded the company’s stock to “Neutral” from “Buy” and removed the price target after The Trade Desk, Inc. (NASDAQ:TTD) posted Q2 2025 earnings. The firm’s earlier thesis around a Kokai-driven turnaround is not playing out, and BTIG anticipates the company’s shares to remain muted amidst an increased level of uncertainty around the macro and agency backdrop.
The Trade Desk, Inc. (NASDAQ:TTD) made strong progress in CTV, retail media, and the supply chain, strengthening the largest brands and agencies to reach audiences throughout the open internet. Amidst continued innovation in Kokai, higher adoption of OpenPath, and deeper partnerships throughout the ecosystem, the company continues to deliver strong value to its clients and helps to strengthen the open internet. The Trade Desk, Inc. (NASDAQ:TTD) injected AI across several parts of the system as the clients that have adopted Kokai saw significant performance improvements.
In the aggregate, The Trade Desk, Inc. (NASDAQ:TTD) continues to see over a 20-point improvement throughout key KPIs for campaigns running in Kokai. Baron Funds, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“The Trade Desk, Inc. (NASDAQ:TTD) is the leading internet advertising demand-side platform, enabling agencies to efficiently purchase digital advertising across PC, mobile, and online video channels. Shares fell on an earnings miss for the first time in 33 quarters. We believe the miss was due largely to a company reorganization in December and delays in its Kokai platform rollout, both of which we believe have since improved. We believe Trade Desk still represents the best option for biddable Connected TV (CTV) inventory. We note Trade Desk gained share against the incumbent Google in the last five years, even when Google charged low/no fees, and major companies like Netflix, Disney, and Spotify have opened their ad inventory to Trade Desk. Its market remains large and underpenetrated, as the shift to CTV advertising is still in the early stages. We believe Trade Desk can grow its top line by high teens to 20% year-over-year for years to come.”
4. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)
Number of Hedge Fund Holders: 71
Average Upside Potential: ~24.1%
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is one of the Reddit Stocks with the Highest Upside Potential. On August 8, Raymond James lifted the price target on the company’s stock to $260 from $250, while keeping an “Outperform” rating, as reported by The Fly. As per the analyst, the company has reported Q1 2025 results solidly above expectations, and Take-Two Interactive Software, Inc. (NASDAQ:TTWO)’s fiscal 2026 outlook was increased to account for the beat. The company’s strong Q1 2026 results demonstrate ongoing demand for the core franchises and the increasingly diversified and successful nature of its business.
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) raised its FY 2026 net bookings outlook to $6.05 billion – $6.15 billion. In Q1 2026, the company’s total net bookings saw an increase of 17% to $1.42 billion as compared to $1.22 billion during Q1 2025, with net bookings from recurrent consumer spending increasing 17% and making up for 83% of total net bookings. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)’s GAAP net revenue came in at $1.50 billion as compared to $1.34 billion in Q1 2025. Notably, recurrent consumer spending rose 14% and accounted for 84% of the total GAAP net revenue.
3. Chipotle Mexican Grill, Inc. (NYSE:CMG)
Number of Hedge Fund Holders: 78
Average Upside Potential: ~38.9%
Chipotle Mexican Grill, Inc. (NYSE:CMG) is one of the Reddit Stocks with the Highest Upside Potential. On July 25, Morgan Stanley analyst Brian Harbour maintained the bullish stance on the company’s stock, giving a “Buy” rating. The analyst’s rating is backed by a combination of factors demonstrating the company’s position in the broader restaurant industry. Despite the concerns related to short-term demand fluctuations, Chipotle Mexican Grill, Inc. (NYSE:CMG) happens to be a benchmark for growth restaurants, reflecting healthy market presence as well as potential for long-term success.
While the analyst acknowledged the volatility in the high-frequency data, such trends might be temporary and influenced by consumer pressures and seasonal patterns, added Harbour. Furthermore, though there are moderating fundamentals throughout the sector, Chipotle Mexican Grill, Inc. (NYSE:CMG)’s capability to deliver on the growth strategies places it favorably as compared to its peers. For 2025, Chipotle Mexican Grill, Inc. (NYSE:CMG) expects 315 – 345 new company-owned restaurant openings, with more than 80% having a Chipotlane.
Artisan Partners, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“We ended our investment campaign in Chipotle Mexican Grill, Inc. (NYSE:CMG), Saia and Dick’s Sporting Goods during the quarter. Chipotle operates a system of fast casual restaurants. Chipotle’s combination of superior quality and speed of service has created a strong brand affinity. Furthermore, increased accessibility and convenience have been a strategic priority, leading it to add secondary “make lines” that enable each store to meet increased demand from third-party delivery services and the company’s own digital pickup lanes. After a successful, multiyear investment campaign, we harvested our final shares.”
2. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 104
Average Upside Potential: ~23%
The Walt Disney Company (NYSE:DIS) is one of the Reddit Stocks with the Highest Upside Potential. On August 7, Laura Martin from Needham maintained a “Buy” rating on the company’s stock, with a price objective of $125.00. The analyst’s rating is backed by several positive developments for The Walt Disney Company (NYSE:DIS) in Q3 2025. Notably, the company’s diluted EPS rose to $2.92 from $1.43 in Q3 2024, and adjusted EPS went up by 16% for Q3 2025 to $1.61 from $1.39 in Q3 2024.
Furthermore, The Walt Disney Company (NYSE:DIS)’s direct-to-consumer segment demonstrated profitability with an operating income of $346 million. The company’s Experiences segment saw operating income of $2.5 billion, reflecting a rise of $294 million compared to Q3 2024. The operating income in the quarter demonstrates a ~$40 million benefit from the timing of the Easter holiday, and a ~$30 million impact from pre-opening expenses at Disney Cruise Line.
Despite the concerns, the positive financial performance and strategic initiatives, like asset swap involving ESPN and the NFL Network, as well as the timely launch of ESPN’s flagship service, supported the analyst’s rating. Diamond Hill Capital, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“Other top Q2 contributors included The Walt Disney Company (NYSE:DIS), Ferguson Enterprises and Capital One Financial. Diversified media and entertainment company Walt Disney benefited from easing macroeconomic concerns, primarily in its parks division, which is particularly sensitive to the economic backdrop.”
1. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 119
Average Upside Potential: 52.0%
Eli Lilly and Company (NYSE:LLY) is one of the Reddit Stocks with the Highest Upside Potential. On August 7, the company released Q2 2025 results, with revenues increasing 38% to $15.56 billion, thanks to the volume growth from Zepbound and Mounjaro. Furthermore, Eli Lilly and Company (NYSE:LLY) raised the midpoint of its 2025 full-year revenue guidance by $1.5 billion to be between $60 billion – $62 billion. The company expects reported EPS to be between $20.85 – $22.10, and non-GAAP EPS of between $21.75 – $23.00.
Eli Lilly and Company (NYSE:LLY)’s pipeline has been advancing, thanks to positive study results in oncology and cardiometabolic health, such as Mounjaro’s demonstrated cardio-protective effects in patients with type 2 diabetes and heart disease and healthy data for its oral incretin, orforglipron, in obesity. Eli Lilly and Company (NYSE:LLY) also expanded manufacturing capacity in a bid to meet elevated demand and invested in critical R&D initiatives to support its long-term growth. In Q2 2025, R&D expenses rose 23% to $3.34 billion, or 21.4% of revenue. This was because of continued investments in its early and late-stage portfolio.
Impax Asset Management, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“Eli Lilly and Company (NYSE:LLY) (Health Care, Pharmaceuticals) boasts an innovative drug portfolio that has the potential to transform the standard of care across several diseases. The stock was weaker in the quarter despite results that were in-line or better than expectations. Shares were under pressure after CVS’ announcement that competitor Novo Nordisk’s Wegovy will now be the preferred GLP-1 drug on their national formulary, which currently represents a mid-single digit percentage of Lilly’s current Zepbound patients.”
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