Jim Cramer revealed Monday that tech insiders are surprisingly bullish on Eli Lilly stock, with one predicting the drugmaker could reach a $2 trillion market capitalization. Cramer recalled a conversation with a cybersecurity expert who recommended Eli Lilly over tech stocks, calling it “incredible.” This expert, deeply involved in cybersecurity and associated with CoreWeave, emphasized Eli Lilly as the preferred investment, a sentiment Cramer found remarkable given the individual’s tech background.
Techies eye Eli Lilly’s potential
Cramer noted that even among tech-focused individuals, Eli Lilly stands out as a top pick. Billionaire investor Ken Langone previously predicted Lilly’s stock would surpass a $1 trillion market cap, which it achieved nearly a year ago. The stock currently holds a $1.2 trillion valuation. Langone’s foresight shows the growing recognition of Eli Lilly’s potential beyond traditional healthcare investors, as tech insiders increasingly view it as a compelling opportunity.
Lilly has emerged as a dominant player in GLP-1s, with its weight-loss treatments, including injectable Zepbound and daily pill Foundayo, driving enthusiasm. The company’s shares closed at a record high of over $1,306 each on October 22, though they have since drifted lower. This surge reflects investor confidence in Lilly’s ability to capitalize on the growing demand for weight-loss solutions, positioning it as a leader in a rapidly expanding market.
Market shift favors healthcare over tech
The bullish call on Eli Lilly comes as healthcare outperforms tech this quarter. Investors are looking beyond the AI trade for growth opportunities, and Lilly has been a standout performer. Its shares have climbed 10.5% month-to-date, far outpacing the Dow’s roughly 2.8% gain, the S&P 500’s 0.3% increase, and the Nasdaq’s 2.4% loss. This performance highlights Lilly’s resilience and attractiveness in a market where tech stocks are facing challenges.
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Eli Lilly’s next test comes Thursday with its third-quarter earnings report. Investors will watch for growth in its weight-loss drug business, particularly as Foundayo gains traction. A 67% increase from current levels would be needed to reach the predicted $2 trillion market cap. The earnings report will provide critical insights into whether Lilly can sustain its momentum and meet investor expectations.
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Eli Lilly’s shares have surged 15% from their mid-September low, fueled by continued enthusiasm for its weight-loss treatments. As the company works through the competitive pharmaceutical market, its ability to innovate and maintain strong financial performance will be critical in achieving the predicted $2 trillion market capitalization. With its dominant position in GLP-1s and a pipeline of promising treatments, Lilly is well-positioned to capitalize on future growth opportunities.