Eli Lilly Loses $100 Billion in Market Value, Airbnb Tumbles on Travel Demand Fears

Two American giants, Eli Lilly and Airbnb, suffered staggering market losses on Thursday, rattling investor confidence and triggering sharp sector-wide sell-offs.

Pharmaceutical heavyweight Eli Lilly saw its shares plummet by more than 14%, closing at their lowest level in over 18 months. The sell-off wiped out a staggering $100 billion from the company’s market capitalization in a single trading session.

The sharp decline came after disappointing late-stage trial results for the company’s highly anticipated oral weight-loss drug, Orforglipron. The drug helped patients lose an average of 12.4% of their body weight at the highest dose (36 mg), falling short of investor expectations of around 14%.

The market reaction was swift and brutal, reflecting the high stakes and intense competition in the booming weight-loss drug market, where rivals like Novo Nordisk have set a high bar with injectable drugs such as Wegovy.

"Expectations were sky-high, and unfortunately Eli Lilly didn't clear the bar this time," said a healthcare analyst at Morgan Street Research. "Investors were hoping for a category-defining breakthrough. These results, while solid, just weren't enough."

Airbnb Suffers Biggest Drop in 9 Months

Meanwhile, Airbnb shares fell by 8%, marking the company’s worst single-day performance in nine months. The drop followed the company’s downbeat forecast for the second half of 2025, raising concerns about slowing travel demand.

The home-rental platform warned of moderating growth, citing signs that American travelers, especially those with tighter budgets, are becoming more cautious amid persistent inflation and rising fees.

"After a strong rebound in consumer confidence last month, investors were caught off guard," said a travel industry analyst. "The expectation was for a sustained summer surge, but Airbnb’s forecast paints a more cautious picture."

The warning has cast a shadow over the broader vacation rental sector, which had been enjoying a recovery fueled by optimism from other major travel companies.