Digging Into What Hershey and Eli Lilly Told Investors

Group 1: DeepSeek Market Reaction - The release of a large language model by a Chinese hedge fund, DeepSeek, led to a one trillion dollar market crash, affecting companies like Taiwan Semiconductor and NVIDIA [3] - The market reaction was characterized as large and fueled by insufficient information, with many traders acting on incomplete understanding of the AI model's implications [3] - Lawmakers are considering banning DeepSeek on government devices, reflecting widespread corporate concerns about the application [4][5] Group 2: Hershey's Performance - Hershey reported a 9% increase in sales on a constant currency basis, with net income more than doubling, surprising analysts who expected a decline due to healthier eating trends [6][7] - The growth in sales of North American salty snacks was significant, with a 36% increase, attributed to acquisitions and improved distribution channels [7] - Hershey's ownership structure is unique, with the majority of voting stock controlled by the Milton Hershey School, which has different priorities than maximizing profits [8][9] Group 3: Eli Lilly's Growth - Eli Lilly reported a 45% year-over-year revenue growth, driven by the success of its weight loss drugs, positioning it alongside younger growth stocks [11] - The company's net income doubled to approximately $11.7 billion, up from $5.7 billion in 2023, indicating strong profitability [12] - Concerns exist regarding the sustainability of this growth, particularly with competition from other companies developing similar weight loss drugs [13][14] Group 4: Streaming Industry Challenges - The podcast discusses the challenges of producing television in the streaming era, highlighting a shift towards creating content primarily for marketing rather than for viewer engagement [18][19] - Executives in the streaming industry prioritize recognizable intellectual property and star power over artistic quality, leading to a less favorable environment for creative storytelling [20] - The current landscape is described as increasingly antagonistic towards artistic endeavors, with a focus on generating subscriptions rather than producing compelling content [20][24]