The weight-loss frenzy is making some pharma stocks much more volatile. Will the drama continue?

Eli Lilly's stock has shown extreme volatility, with significant drops following earnings report misses despite quick recoveries after positive sales commentary. This suggests potential for continued volatility driven by investor reactions to performance over GLP-1 products. Given its strong market position despite the recent volatility, potential short-term trading opportunities could arise during earnings periods or product news announcements.

Novo Nordisk has a solid position in the GLP-1 market alongside Eli Lilly and is expected to benefit from the ongoing weight-loss drug frenzy. Although it may experience volatility, the overall market demand for weight-loss treatments is expected to drive stock performance positively in the long term, particularly if they continue releasing strong sales data.

Amgen is currently dealing with potential risks related to its emerging GLP-1 candidate MariTide, which could lead to negative sentiment if any negative data or setbacks occur. While the company has room for growth, investors may react quickly to any news surrounding this product, suggesting a speculative environment.