Becker Private Equity & Business Podcast: NVIDIA, Hertz, United, & Eli Lilly (04-18-25)
Host: Scott Becker
Release Date: April 18, 2025

Introduction

In the April 18, 2025 episode of the Becker Private Equity & Business Podcast, host Scott Becker delves into the recent movements and developments surrounding four significant stocks: NVIDIA, Hertz, United Health Group, and Eli Lilly. Becker provides listeners with a comprehensive analysis of each company's current standing, recent performance, and future prospects, offering valuable insights for investors and business enthusiasts alike.

Eli Lilly: A Positive Surge

Performance Highlights:
Eli Lilly experienced a substantial 14% increase in its stock value the previous day, driven by promising trial results for one of their weight loss drugs.

Key Insights:
Becker emphasizes the significance of these positive test results, noting, “Eli Lilly jumped 14% yesterday on great test results, great results, trial results for one of their weight loss drugs” (00:30). This robust performance underscores the company’s potential in the competitive pharmaceutical market, particularly in the weight management segment.

Competitive Landscape:
In contrast to Eli Lilly's upward trajectory, competitor Novo Nordisk faced a downturn. Becker points out, “Novo Nordisk in contrast, one in the wrong direction as a competitor to Eli Lilly” (02:10), highlighting the competitive pressures within the industry and the varying performances of major players.

United Health Group: Significant Decline

Performance Highlights:
United Health Group saw a dramatic 22% drop in its stock price, marking the largest decline in over two decades.

Key Insights:
Becker attributes this sharp decline to missed earnings expectations and the company’s projection of higher loss ratios for the remainder of the year. He states, “United Health Group dropped 22% yesterday. That's their biggest drop in 20 plus years, more than 20 years as their earnings missed. And they also projected much higher loss ratios for the rest of the year” (03:00). This downturn raises concerns about the company's financial health and future profitability.

Market Impact:
The significant drop in United Health Group's stock serves as a cautionary tale for investors, emphasizing the importance of closely monitoring earnings reports and forward-looking statements.

Hertz and Avis: Rental Car Industry Momentum

Performance Highlights:
Hertz saw an impressive 44% jump in its stock price, while Avis also experienced gains following news concerning prominent investor Bill Ackman's involvement.

Key Insights:
Becker discusses the positive sentiment in the rental car industry, noting, “Hertz jumped 44% on news that Bill Ackman, you know, the Pershing Square investor, highly noted investor, is also going to invest in Hertz. Avis also jumped on that news too” (04:15). Ackman’s investment signals confidence in Hertz’s strategic direction and market potential, boosting investor morale across the sector.

Industry Implications:
The rally in Hertz and Avis stocks suggests a broader recovery or growth phase within the rental car industry, potentially driven by increased travel demand and strategic investments from influential investors.

NVIDIA: Market Cap Concerns

Performance Highlights:
NVIDIA's market capitalization has recently declined, sparking discussions about its financial stability and market position.

Key Insights:
Becker addresses the notable decrease in NVIDIA’s market cap, stating, “Nvidia now is down to $2.5 billion market cap. That means it's lost in market cap. 2.5 trillion to market cap. That means it's lost in market cap something like 700 to 800 billion over the last several months” (05:45). Although there appears to be a typographical error regarding the exact figures, the underlying message is clear: NVIDIA has experienced significant losses in market value recently.

Analytical Perspective:
Despite the downturn, Becker remains a strong advocate for NVIDIA, praising CEO Jensen Huang: “I'm not the hugest fan of Jensen Wong. I really am. I think he's literally remarkable” (06:30). This indicates that Becker believes in the leadership and long-term potential of NVIDIA, despite short-term market challenges.

Investor Sentiment:
The decline in NVIDIA's market cap may reflect broader market volatility or specific concerns related to the company's performance. Becker's commentary suggests a nuanced view, recognizing both the challenges and the underlying strengths of the company.

Conclusion

In this episode, Scott Becker provides a nuanced analysis of four major companies, highlighting the dynamic nature of the stock market and the factors influencing investor sentiment. From Eli Lilly's promising drug trial results and United Health Group's significant stock drop to the rental car industry's resurgence and NVIDIA's market cap challenges, Becker offers listeners a well-rounded perspective on these pivotal businesses.

Becker concludes with a remark on market dynamics: “The markets are closed this Friday. God bless that. We could all use a day off in the markets” (07:15), underscoring the often turbulent nature of market movements and the importance of taking a step back to assess one's investment strategies.

Notable Quotes:

• Eli Lilly’s Positive Performance:
  “Eli Lilly jumped 14% yesterday on great test results, great results, trial results for one of their weight loss drugs.” (00:30)

• United Health Group’s Decline:
  “United Health Group dropped 22% yesterday. That's their biggest drop in 20 plus years, more than 20 years as their earnings missed. And they also projected much higher loss ratios for the rest of the year.” (03:00)

• Hertz and Avis’ Stock Jump:
  “Hertz jumped 44% on news that Bill Ackman, you know, the Pershing Square investor, highly noted investor, is also going to invest in Hertz. Avis also jumped on that news too.” (04:15)

• NVIDIA’s Market Cap Concerns:
  “Nvidia now is down to $2.5 billion market cap. That means it's lost in market cap. 2.5 trillion to market cap. That means it's lost in market cap something like 700 to 800 billion over the last several months.” (05:45)

• Appreciation for Leadership:
  “I'm not the hugest fan of Jensen Wong. I really am. I think he's literally remarkable.” (06:30)

• Closing Remark:
  “The markets are closed this Friday. God bless that. We could all use a day off in the markets.” (07:15)

For a deeper dive into these topics and more, tune into the Becker Private Equity & Business Podcast hosted by Scott Becker.