Teva Pharmaceutical Industries Limited develops, manufactures, markets, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America, Europe, Israel, and internationally. It offers generic medicines in various dosage forms, such as tablets, capsules, injectables, inhalants, liquids, transdermal patches, ointments, and creams; sterile products, hormones, high-potency drugs, and cytotoxic substances in parenteral and solid dosage forms; and generic products with medical devices and combination products. The company focuses on the central nervous system (CNS), respiratory, and oncology areas. It provides active pharmaceutical ingredients, as well as contract manufacturing services; and operates an out-licensing platform that offers a portfolio of products to other pharmaceutical companies. The company also offers BENDEKA and TREANDA injections for the treatment of chronic lymphocytic leukemia and indolent b-cell non-hodgkin's lymphoma; GRANIX; TRISENOX; LONQUEX; and TEVAGRASTIM/RATIOGRASTIM. In addition, it provides COPAXONE for the treatment of relapsing forms of multiple sclerosis; AJOVY for the preventive treatment of migraine in adults; AUSTEDO for the treatment of neurodegenerative and movement disorders associated with Huntington's disease and tardive dyskinesia; UZEDY for the treatment of schizophrenia; ProAir RespiClick inhalation powder; QVAR for treatment for asthma; BRALTUS, a long-acting muscarinic antagonist; CINQAIR/CINQAERO injection; DuoResp Spiromax, an inhaled corticosteroid and long-acting beta-agonist bronchodilator; and AirDuo RespiClick fluticasone propionate and salmeterol inhalation powder. The company offers its OTC products under SUDOCREM, NasenDuo, DICLOX FORTE, OLFEN Max, and FLEGAMINA brand names. It has collaboration agreements with MedinCell; Sanofi; Alvotech; and Biolojic Design Ltd., as well as license agreement with MODAG GmbH. The company was founded in 1901 and is based in Tel Aviv, Israel.

Teva Pharmaceutical Industries Limited

Key Points
Quarterly-filed Form 13Fs allow investors to track which stocks Wall Street's savviest money managers are buying and selling.
Billionaire Stanley Druckenmiller dumped his fund's stakes in AI darlings Nvidia and Palantir -- and profit-taking may not explain the entire story.
Meanwhile, Duquesne's investment chief has scooped up shares of an inexpensive drugmaker for five consecutive quarters.
For the better part of the last three years, no trend has garnered more attention on Wall Street than artificial intelligence (AI). Empowering software and systems with the tools to make split-second decisions, all without the need for human oversight, is a technological advancement that can benefit most industries around the globe -- and the stock market's savviest money managers know it.
No later than 45 calendar days following the end of a quarter, institutional investors with at least $100 million in assets under management are required to file Form 13F with the Securities and Exchange Commission. A 13F details which stocks Wall Street's brightest money managers purchased and sold in the latest quarter.
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As you can imagine, the stock market's AI darlings, graphics processing unit (GPU) titan Nvidia (NASDAQ: NVDA) and software-as-a-service (SaaS) giant Palantir Technologies (NASDAQ: PLTR), have been top-tier holdings for several fund managers. But this optimism isn't universal.
Duquesne Family Office's billionaire boss, Stanley Druckenmiller, exited his fund's positions in Nvidia and Palantir well in advance of 2026. Instead of focusing on AI, Druckenmiller has been busy piling into one of Wall Street's hottest drug stocks for five consecutive quarters.
Billionaire Stanley Druckenmiller showed Nvidia and Palantir to the door
Since the beginning of 2023, Nvidia and Palantir have made their patient shareholders considerably richer. Nvidia became the first public company to reach the $5 trillion market cap plateau earlier this year, while shares of Palantir have climbed by more than 2,900%!
These near-parabolic ascents reflect the seemingly sustainable moats that both companies hold dear. Nvidia's Hopper, Blackwell, and Blackwell Ultra GPUs have been superior, on a compute basis, to external competition. With AI infrastructure demand outpacing supply, and CEO Jensen Huang intent on bringing a new GPU to market annually, Nvidia hasn't had any trouble charging a premium price for its hardware.
Meanwhile, Palantir's AI-driven Gotham and Foundry SaaS platforms lack one-for-one replacements at scale. Gotham assists the U.S. government and its allies in planning and overseeing military missions, as well as in collecting and analyzing data. The multiyear contracts Palantir has signed with the U.S. government ensure predictable double-digit sales growth and abundant operating cash flow.
Despite these sustainable moats, billionaire Stanley Druckenmiller parted ways with both stocks. He jettisoned his fund's remaining stake of 214,060 shares of Nvidia during the September-ended quarter of 2024. As for Palantir, 769,965 shares were shown to the door in a nine-month stretch between July 1, 2024, and March 31, 2025.
Druckenmiller dumping the faces of the AI revolution may represent nothing more than simple profit-taking. According to 13F aggregator WhaleWisdom.com, the average hold time for every security in Duquesne Family Office's fund, as of Sept. 30, was less than seven months. This demonstrates the willingness of its investment chief to take profits when the opportunity presents itself.
The concern is that there may be more to this selling activity than just a desire to cash in his chips.
For example, history tells us that every game-changing technological advancement over the last three decades, including the internet, genome decoding, nanotechnology, 3D printing, blockchain technology, and the metaverse, has navigated an early stage bubble-bursting event. Although it's impossible to forecast when the music will stop, the common theme has been an overestimation by investors of the adoption rate and/or optimization of a new technology.
While Nvidia's and Palantir's sales growth point to robust demand for their respective products and services, most businesses that are aggressively spending on AI have yet to optimize their solutions. In other words, companies deploying AI haven't figured out how to get the highest return out of their investment. It takes time for all technologies to mature and evolve. If an AI bubble forms and subsequently bursts, Nvidia and Palantir stocks would be in trouble.
Furthermore, the valuations for Wall Street's favorite AI duo are suspect. Historically, price-to-sales (P/S) ratios above 30 for companies at the forefront of next-big-thing innovations have been unsustainable over the long run. Though Nvidia, briefly, topped a P/S ratio of 30 in early November, it's Palantir's P/S ratio of 127, as of the closing bell on Dec. 19, which stands out like a sore thumb.
Duquesne's billionaire boss has loaded up on shares of this drug stock ahead of 2026
At the other end of the spectrum, Duquesne Family Office's lead investor has continued to scoop up shares of brand-name and generic-drug developer Teva Pharmaceutical Industries (NYSE: TEVA). Shares of Teva have soared by 191% since the beginning of 2024.
Druckenmiller began loading up on shares of this drug stock during the second half of 2024 and simply hasn't stopped. Between July 1, 2024, and Sept. 30, 2025, 13Fs show:
Q3 2024: 1,427,950 shares purchased
Q4 2024: 7,569,450 shares purchased
Q1 2025: 5,882,350 shares purchased
Q2 2025: 1,089,189 shares purchased
Q3 2025: 625,000 shares purchased (16,593,935 total shares held)
In 15 months, Teva has become the third-largest holding by market value in the nearly $4.1 billion fund Druckenmiller oversees.
One reason for this optimism likely has to do with Teva working through a series of legal overhangs. In particular, the company resolved litigation in early 2023 with 48 states regarding its role in the opioid crisis. Quantifying this settlement and spreading it out over 13 years alleviated the company's financial concerns, allowing investors to refocus on Teva's innovative capabilities.
Speaking of innovation, CEO Richard Francis has made waves by shifting his company's focus toward novel drug development. While Teva continues to be a key player in the global generic drug market, the pricing power of generics hasn't been great for years. Developing brand-name therapies affords Teva improved pricing power and considerably higher margins. For instance, in 2025, tardive dyskinesia drug Austedo is expected to bring in more than $2 billion in global sales.
Teva Pharmaceutical has also vastly improved its balance sheet over the last nine years.
Following the buyout of generic drug company Actavis in August 2016, Teva's net debt surpassed $35 billion. But under the leadership of turnaround specialist CEO Kare Schultz, who preceded Richard Francis, the company lowered its annual operating expenses, sold off non-core assets, and significantly reduced its net debt. As of the end of the third quarter of 2025, Teva's net debt has been more than halved to $14.6 billion.
Lastly, billionaire Stanley Druckenmiller was likely drawn to Teva's valuation amid a historically expensive stock market. Though it's trading at a still-reasonable 11 times forward-year earnings per share, as of this writing, Duquesne's billionaire boss began scooping up shares with Teva trading at a forward price-to-earnings ratio as low as 5.
Should you buy stock in Teva Pharmaceutical Industries right now?
Before you buy stock in Teva Pharmaceutical Industries, consider this:
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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $502,783!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,126,057!*
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Sean Williams has positions in Teva Pharmaceutical Industries. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Billionaire Stanley Druckenmiller Sold Nvidia and Palantir and Piled Into One of Wall Street's Hottest Drug Stocks Ahead of 2026

Johnson & Johnson’s JNJ stock has been consistently trading above its 50-day and 200-day simple moving averages (SMAs) since the end of June. It achieved the golden cross in mid-July. The 50-day moving average is a short-term indicator, while the 200-day moving average is a longer-term indicator. When the 50-day moving average crosses above the 200-day moving average on a stock’s price chart, it's known as a "golden cross," a bullish signal suggesting potential for a prolonged upward trend. The 50-day SMA has been above the 200-day SMA since it achieved the golden cross in July. This scenario confirms that J&J’s medium-term momentum continues to outpace the long-term trend, reinforcing bullish sentiment.
Image Source: Zacks Investment Research
The stock’s strong price performance has been driven by its strong operational performance so far in 2025, backed by double-digit growth in revenues from key brands and contributions from new launches. The company expects accelerated momentum in 2026.
Let’s understand J&J’s strengths and weaknesses to better analyze how to play the stock after it reaches this important support level.
JNJ’s Innovative Medicine Showing Consistent Strength
J&J’s Innovative Medicine unit is showing a growth trend. The segment’s sales rose 3.4% in the first nine months of 2025 on an organic basis despite the loss of exclusivity (LOE) of its multi-billion-dollar product, Stelara, and the negative impact of the Part D redesign. The third quarter was the segment’s second consecutive quarter of sales of more than $15 billion despite Stelara’s LOE. Growth is being driven by J&J’s key drugs like Darzalex, Erleada and Tremfya. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato also contributed significantly to growth.
In 2026, J&J expects accelerated growth in the Innovative Medicine segment to be driven by its key products as well as new drugs and recently launched products, including Tremfya in inflammatory bowel disease (IBD), Rybrevant plus Lazcluze in non-small cell lung cancer and the newly approved drug, Inlexzo in bladder cancer.
J&J’s Significant Pipeline Progress This Year
J&J has rapidly advanced its pipeline this year, attaining significant clinical and regulatory milestones that will help drive growth through the back half of the decade. This year, it gained approval for new products like Inlexzoh/TAR-200, a first-of-its-kind drug-releasing system, for treating high-risk non-muscle invasive bladder cancer and Imaavy (nipocalimab) for treating generalized myasthenia gravis. J&J believes that nipocalimab has a pipeline-in-a-product potential. Regulatory applications were recently filed for another key candidate, icotrokinra, for moderate-to-severe plaque psoriasis. J&J believes that icotrokinra has the potential to revolutionize the treatment of plaque psoriasis with a once-a-day pill.
Three of J&J’s new cancer drugs are Carvykti, a BCMA CAR-T therapy for relapsed or refractory multiple myeloma; Tecvayli, for relapsed or refractory multiple myeloma; and Talvey, a novel bispecific therapy for heavily pretreated multiple myeloma. These drugs have also begun to contribute to top-line growth. Combined, they generated $2.14 billion in sales in the first nine months of 2025.
J&J’s acquisition of Intra-Cellular Therapies this year added antidepressant drug, Caplyta, to its neuroscience portfolio, which is approved for the treatment of schizophrenia, depression in both bipolar 1 and 2, and major depressive disorder.
J&J believes 10 of its new products/pipeline candidates in the Innovative Medicine segment have the potential to deliver peak sales of $5 billion, including Talvey, Tecvayli, Imaavy, newly acquired Caplyta, Inlexzo, Rybrevant, plus Lazcluze and icotrokinra.
J&J’s MedTech Segment Sales Improving
J&J’s MedTech business has improved in the past two quarters, driven by the acquired cardiovascular businesses, Abiomed and Shockwave, as well as Surgical Vision and wound closure in Surgery. Improvements in J&J’s electrophysiology business also drove growth.
Moreover, the potential separation of its Orthopaedics franchise into a standalone orthopedics-focused company, called DePuy Synthes, should improve its MedTech unit’s growth and margins. The Orthopaedics franchise has been a slow-growth business for J&J.
In 2026, J&J expects better growth in the MedTech business than in 2025, driven by increased adoption of newly launched products across all MedTech platforms and increased focus on higher-growth markets. J&J expects to launch new products like the Shockwave C2 Aero catheter and the Tecnis intraocular lens in the United States, as well as a regulatory submission for the OTTAVA robotic surgical system in 2026. These new products may also contribute to growth in 2026.
However, the company continues to face headwinds in China. Sales in China are being hurt by the impact of the volume-based procurement (VBP) program, which is a government-driven cost containment effort in China. J&J expects continued impacts from VBP issues in China as the program continues to expand across provinces and products.
Patent Expiration of J&J’s Drug Stelara & Other Headwinds
J&J lost U.S. patent exclusivity of Stelara in 2025. Stelara was a key top-line driver for J&J, accounting for around 18% of J&J’s Innovative Medicine unit’s sales in 2024, before it lost patent exclusivity in 2025.
Several biosimilar versions of Stelara have been launched in the United States in 2025. According to patent settlements and license agreements, Amgen AMGN, Teva Pharmaceutical Industries TEVA, Samsung Bioepis/Sandoz and some other companies have launched Stelara biosimilars. The launch of generics is significantly eroding Stelara’s sales and hurting J&J’s sales and profits in 2025. Stelara sales declined around 40% in the first nine months of 2025.
In addition, sales in 2025 are being hurt by the impact of the Medicare Part D redesign under the Inflation Reduction Act (IRA). The Part D redesign is mainly affecting sales of drugs like Stelara, Tremfya, Erleada and pulmonary hypertension drugs. J&J expects a negative impact of approximately $2 billion in sales due to the Medicare Part D redesign in 2025.
J&J faces more than 73,000 lawsuits for its talc-based products, primarily baby powders. The lawsuits allege that its talc products contain asbestos, which caused many women to develop ovarian cancer. J&J insists that its talc-based products are safe and do not cause cancer. The company permanently discontinued the sales of the talc-based Johnson’s Baby Powder.
In April, a bankruptcy court in Texas rejected J&J’s proposed bankruptcy plan to settle its talc lawsuits after a two-week trial in Houston. J&J has gone back to the traditional tort system to fight the lawsuits individually, with its bankruptcy strategy to settle the lawsuits failing for the third time.
J&J Stock Price, Valuation and Estimates
J&J’s shares have outperformed the industry in the past year. The stock has risen 42.1% in the past year compared with a 15.2% increase in the industry. The stock has also outperformed the sector and the S&P 500 Index, as seen in the chart below.
JNJ Stock Outperforms Industry, Sector & S&P 500
Image Source: Zacks Investment Research
From a valuation standpoint, J&J is slightly expensive. Going by the price/earnings ratio, the company’s shares currently trade at 17.98 forward earnings, higher than 17.27 for the industry. The stock is also trading above its five-year mean of 15.65.
JNJ Stock Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2025 earnings has risen from $10.86 per share to $10.87 per share and from $11.46 per share to $11.49 per share for 2026 over the past 60 days.
JNJ Estimate Movement
Image Source: Zacks Investment Research
Invest in J&J Stock
J&J expects sales growth in both segments to be higher in 2026. It also boasts strong cash flows and has consistently increased its dividends for 63 consecutive years.
Despite headwinds like softness in the MedTech unit, the legal battle surrounding its talc lawsuits, the Stelara patent cliff and the impact of Part D redesign, J&J looks quite confident that it will be able to navigate these challenges.
J&J’s price appreciation this year, rising estimates and consistent earnings and sales growth suggest one may consider investing in this Zacks Rank #2 (Buy) stock for now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

J&J Stock Trading Above 50- & 200-Day SMA for 6 Months: How to Play

Key Points
It's been another banner year on Wall Street, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, respectively, higher by 14%, 16%, and 20% year-to-date.
Although I've been a net seller of stocks in 2025, I'm a long-term investor who intends to hold the majority of my 36 positions for years to come.
Most of my 10 largest holdings possess clear competitive advantages or offer attractive valuations.
Less than two weeks from today, the curtain will close on 2025. When that happens, investors will likely be grinning from ear to ear. As of the closing bell on Dec. 12, the ageless Dow Jones Industrial Average, benchmark S&P 500, and Innovation-inspired Nasdaq Composite have rallied 14%, 16%, and 20%, respectively, year to date.
But investing isn't about where we've been -- it's all about what comes next.
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In a similar fashion to Berkshire Hathaway's soon-to-be-retiring CEO, Warren Buffett, I've been a net seller of equities amid a historically pricey stock market. Having dry powder at the ready to pounce on price dislocations when they arise is never a bad idea.
Despite increasing my available cash for future investments, I've maintained my long-term focus and intend to hold the vast majority of my 36 positions (35 stocks and one exchange-traded fund (ETF)) for years to come. My top 10 portfolio holdings account for more than 81% of my invested assets, excluding cash, and I'll be counting on them to outperform in what might be a volatile year ahead for Wall Street.
1. SSR Mining
Gold and silver mining stock SSR Mining (NASDAQ: SSRM) has consistently been among my largest holdings over the last nine years. Shares have bounced back in a big way following a tragic mining accident at the company's Copler mine in Turkey in mid-February 2023.
The rapid rise in the spot prices of gold and silver has been the primary spark for SSR Mining's 219% year-to-date gain. With U.S. M2 money supply skyrocketing during and after the COVID-19 pandemic, it's set the stage for a historic run-up in precious metals.
In 2026, SSR Mining's biggest catalysts will likely be the ongoing rally in precious metals, as well as the possibility of having its environmental license at Copler reinstated, with remediation work ongoing.
2. Teva Pharmaceutical Industries
Turnaround stories take time, but pharmaceutical titan Teva Pharmaceutical Industries' (NYSE: TEVA) 180 is firmly in place.
CEO Richard Francis has shifted some of his company's focus away from low-margin generics and toward high-margin novel drug development. With tardive dyskinesia drug Austedo pacing more than $2 billion in full-year sales for 2025, it's safe to say this decision is paying off.
Teva is also benefiting from the fact that its legal woes are firmly in the rearview mirror. A $4.25 billion settlement with 48 states concerning its role in the opioid crisis paved the way for Teva to refocus its efforts on drug development and further enhanced its ability to pay down debt. This should continue to fuel multiple expansion for the stock.
3. iShares 0-3 Month Treasury Bond ETF
The lone ETF I hold is the iShares 0-3 Month Treasury Bond ETF (NYSEMKT: SGOV), which invests in U.S. Treasury bills that mature in three months or less.
This is the ETF where I park a substantial portion of my cash that's waiting to be invested at some point in the future. With my broker (E*TRADE from Morgan Stanley) paying a paltry 0.01% yield on uninvested cash held in my account, the highly liquid and stable iShares 0-3 Month Treasury Bond ETF has been a smarter choice to generate returns on my idle cash, since it's producing an annual yield in the neighborhood of 4%.
4. Meta Platforms
My fourth-largest holding is social media behemoth Meta Platforms (NASDAQ: META). Although Meta's artificial intelligence (AI) spending is the talk of Wall Street, what I appreciate most is the exceptional ad-pricing power it brings to the table.
Meta is the parent company of some of the most popular social media apps, including Facebook, WhatsApp, Instagram, Threads, and Facebook Messenger. During September, Meta's family of apps attracted an average of 3.54 billion daily active people. Businesses are well aware that Meta offers them the best chance to reach a broad audience with their message(s).
What's more, Meta is drowning in capital. It closed out September with approximately $44.5 billion in cash, cash equivalents, and marketable securities, and is on track to generate well over $100 billion in cash from its operating activities in 2025. It has the capital to aggressively invest in high-growth initiatives.
5. Bank of America
Money-center goliath Bank of America (NYSE: BAC) has been a continuous holding of mine for more than 14 years, and I don't anticipate selling shares anytime soon.
On one hand, recent Federal Reserve rate cuts could prove challenging for BofA. It's the most interest-sensitive of America's largest banks by total assets. While it disproportionately benefited from the central bank raising rates from March 2022 through July 2023, the opposite is a possibility as the Fed lowers interest rates.
At the same time, the slow and well-telegraphed monetary policy moves by the Fed have allowed Bank of America to continue generating highly profitable loans that can support earnings growth in 2026.
6. PubMatic
Although I've sold more stocks than I've purchased in 2025, based on market value, there's no stock I've bought more of this year than adtech company PubMatic (NASDAQ: PUBM).
PubMatic appears to be ideally positioned within the digital advertising realm. In particular, connected TV ad growth has surpassed 50% from the previous year, with omnichannel video ad revenue jumping 21% in the latest quarter (excluding political ads). PubMatic is the type of company that benefits from lengthy periods of economic expansion and can outpace many of its peers in terms of operating margin, thanks to its decision to build out its own cloud-based infrastructure.
The cherry on top is that PubMatic is generating positive operating cash flow, has no debt, and ended September with $136.5 million in cash and cash equivalents. In my view, it's one of the least expensive growth stocks on Wall Street.
7. First Majestic Silver
I've been a shareholder of gold and silver miner First Majestic Silver (NYSE: AG) since it acquired Primero Mining in May 2018. I had purchased shares of the struggling Primero with the thesis that it would be acquired at a premium, which came to fruition.
First Majestic Silver is the only one of my top 10 portfolio holdings that I've been actively reducing throughout the year. Although a higher spot price for silver has encouraged Wall Street analysts to lift their profit projections for the company, management has often struggled to keep mining costs down. In other words, First Majestic Silver is nearing what I'd deem a fair valuation, which is why I've sold close to half of the position I began 2025 with.
There's a good likelihood I'll continue to pare down this position in 2026.
8. Pinterest
As you may have noticed by now, I'm a pretty big fan of public companies that generate the bulk of their sales through advertising/digital ads. Social media platform Pinterest (NYSE: PINS) certainly checks all the right boxes.
Although Wall Street has been unimpressed with Pinterest's revenue guidance over the last couple of quarters, the company managed to reach 600 million global monthly active users in the third quarter. With Pinterest's average revenue per user (ARPU) still well below what Meta generates in ARPU from its apps, there's ample opportunity for the former to enhance the monetization of its users and further improve its ad-pricing power.
Furthermore, Pinterest is still inexpensive. A forward price-to-earnings (P/E) ratio of 13 is a reasonable price to pay for 15% annual sales growth, relatively steady ARPU expansion, and $2.67 billion in cash, cash equivalents, and marketable securities, with no debt.
9. PayPal Holdings
The ninth-largest position in my portfolio, PayPal Holdings (NASDAQ: PYPL), is similar to Pinterest in that it's delivering on many of its key performance indicators, yet is receiving little to no respect from Wall Street analysts or investors.
Despite active account growth stalling, payment transactions per active account over the trailing 12 months have increased by 41% to 57.6 between Dec. 31, 2020, and Sept. 30, 2025, which demonstrates that active users are becoming more engaged over time. Total payment volume traversing PayPal's digital networks has also been climbing by a high single-digit or low double-digit percentage throughout much of the decade.
PayPal has become quite the capital-return hero, as well. It's initiated a quarterly dividend program, which comes on top of a share buyback program that's been meeting or surpassing $5 billion on a trailing 12-month basis. For companies with steady or growing net income, buybacks can boost earnings per share and make a company's stock more attractive to value-seeking investors.
10. Alphabet
Rounding out my top 10 portfolio holdings for 2026 is Google parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG). Specifically, I've owned the Class A (GOOGL) voting shares since 2022.
Similar to other companies on this list, Alphabet possesses sustainable competitive advantages. Google has controlled 89% to 93% of internet search engine market share over the last decade, according to data from GlobalStats, while streaming service YouTube (which Alphabet also owns) is the second most-visited social site in the world, behind only Google. Its virtual monopoly in internet search ensures phenomenal ad-pricing power.
However, Alphabet's cash cow in the years to come is likely to be cloud infrastructure service platform Google Cloud. Incorporating AI solutions into Google Cloud can accelerate the already lightning-fast growth rate of a high-margin operating segment.
Should you buy stock in SSR Mining right now?
Before you buy stock in SSR Mining, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SSR Mining wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $511,196!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,047,897!*
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Bank of America is an advertising partner of Motley Fool Money. Sean Williams has positions in Alphabet, Bank of America, First Majestic Silver, Meta Platforms, PayPal, Pinterest, PubMatic, SSR Mining, Teva Pharmaceutical Industries, and iShares Trust-iShares 0-3 Month Treasury Bond ETF. The Motley Fool has positions in and recommends Alphabet, Berkshire Hathaway, Meta Platforms, PayPal, Pinterest, PubMatic, and iShares Trust-iShares 0-3 Month Treasury Bond ETF. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short December 2025 $75 calls on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

My Top 10 Portfolio Holdings for 2026

Key Points
Teva Pharmaceutical is one of the world's largest generic drug companies.
Teva is working to differentiate itself in generics by focusing on harder-to-produce drugs.
Teva has begun manufacturing its own proprietary drugs.
Most companies have a simple story to tell, and generic drug maker Teva Pharmaceutical (NYSE: TEVA) is no different. However, under the simple story is almost always a more complex tale that you need to understand, as well. Here are three of the most important facts to know about Teva before you buy this stock in this large and important drugmaker.
1. Generics: The simple story
The big and well-known story surrounding Teva is that the pharmaceutical company focuses on producing generic drugs. Discovering new drugs is a time-consuming, technically complex, and expensive task. Getting new drugs approved by regulators is another massive project. Because the process is so intense, drugmakers are granted a time-limited monopoly on the drugs they discover and bring to market.
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When patent protection on drugs ends, however, companies face generic competition, as competitors such as Teva make copies of the drug. Although the original drugmaker faces a painful patent cliff as its revenue declines, Teva receives a valuable new income stream with very little cost associated with its creation.
That's great, and Teva has an attractive business. But it isn't the only generic-focused drug company in the world. In fact, even in its home market of Israel, the company estimates that it only has a 35% market share. It doesn't provide data on broader market share, but it is reasonable to conclude that Teva's generics business operates in a highly competitive market. Investors can't be complacent, assuming that Teva's position in the generics sector is assured forever.
2. Teva is producing harder-to-make drugs
Making generic drugs means competing on cost. Although Teva is a large company with the capability of producing generic drugs at a low cost, it has been attempting to differentiate itself by moving up the value chain. Essentially, it is attempting to shift toward generic drugs that are more challenging to manufacture. That allows it to lean into its technological strengths and to protect its margins.
This is good news, but it comes along with higher costs and more risk. A key focus here is on biosimilars. Biosimilars aren't exact copies and thus require additional regulatory hurdles. Teva is seeing success in its biosimilar efforts, and this move aligns with the company's core generics business. However, investors need to understand before they buy the stock that Teva is moving up the value chain as it looks to boost its long-term growth prospects, and that comes with added risks.
3. Teva is stepping out on its own
As attractive as the generic drug market is, it is still highly profitable to discover and develop original drugs. In an effort to boost growth even further, Teva isn't only moving up to harder-to-make generics; it is also starting to manufacture its own branded drugs. This means that it faces all the costs and risks that investors generally associate with branded drugmakers.
Once again, this isn't a bad move. In fact, it seems like a logical progression for the company as it gains scale and its technological capabilities grow. However, it also means that there is more risk, since the failure of a novel drug could mean huge capital investments were ultimately worthless. It also means that the company's revenue and earnings outlook are now subject to the volatility inherent in developing branded drugs. Essentially, the patent cliffs that Teva has long taken advantage of are now a risk that investors need to consider when thinking about investing in Teva.
Teva isn't as simple as it once was
For many years, the story surrounding this healthcare stock was relatively straightforward. Teva made generic drugs. That fact hasn't changed, but there is more going on under the covers than there was not too long ago. As you examine this stock, consider the increasingly competitive generic market, the company's shift toward more complex-to-produce generics, and its transition to developing its own branded drugs. Although Teva remains a well-run business, investors may need to be more attentive to it than before, as management looks to accelerate growth.
Should you buy stock in Teva Pharmaceutical Industries right now?
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3 Things You Need to Know if You Buy Teva Pharmaceutical Stock Today

Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the State Street Investment Management, which added 27,150,000 units, or a 2.2% increase week over week. Among the largest underlying components of SPYM, in morning trading today Nvidia is up about 0.9%, and Apple is lower by about 1.5%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the VistaShares Target 15 DRUKMacro Distribution ETF, which added 50,000 units, for a 40.0% increase in outstanding units. Among the largest underlying components of DRKY, in morning trading today Natera is down about 1.5%, and Teva Pharmaceutical Industries is higher by about 0.5%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SPYM, DRKY: Big ETF Inflows

Key Points
Shares of Teva -- a generic-drug maker with a history of losses and high leverage -- have rallied strongly.
Pfizer and Merck, which make branded drugs, are financially strong and are rebuilding their drug pipelines.
Shares of Teva Pharmaceutical Industries (NYSE: TEVA) rallied after it reported earnings on Nov. 5. The stock is now higher by a whopping 45% in roughly a month. The company reported strong results, and it appears that the business is well positioned.
However, after such a large price advance, you may be better off looking at two still-struggling makers of branded drugs instead. Here's why.
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Teva Pharmaceutical has moved very far, very fast
Teva's big business is selling generic drugs. Essentially, it's the competition for makers of branded drugs once their patented medications lose patent protection. Teva and its peers are what cause the patent cliffs that branded-drug companies are constantly trying to manage around.
It's not a bad business to be in, and Teva is a leader in the industry. In addition to its generic drugs, the company has been developing its own branded products. It has also been focusing on more-complex-to-produce generics as a means of differentiating itself from its generic peers. When it reported third-quarter earnings, Teva beat Wall Street expectations on both the top and bottom lines of its income statement.
The stock's 45% rally following the earnings release shows that investors are excited about Teva's future. However, it also prices in a lot of good news in a very short period of time. There are still some concerns to address, including the company's substantial debt load, a history of operating losses, and the fact that it hasn't paid a dividend in years.
Some drugmaker alternatives may be more attractive
While Teva produces what are essentially knockoffs, Pfizer (NYSE: PFE) and Merck (NYSE: MRK) manufacture originals. They both have long histories of success in this area, despite the intense competition and highly technical nature of the pharmaceutical industry. They are both facing patent cliffs in the coming years, which makes investors worry about their future prospects.
However, both are financially strong companies, with materially less leverage than Teva, as the chart above highlights. Moreover, both have consistently been profitable, while Teva has a history of losses, as the chart below shows:
The strong profits that Pfizer and Merck enjoy enable them to invest in new drugs to replace those that are losing patent protection.
Pfizer has been working aggressively to get its drug pipeline back on track after its own weight-loss drug failed. It acquired a company with a promising GLP-1 candidate, and has partnered with another to market a GLP-1 drug (assuming it proves effective). Pfizer is proving that even a drug setback isn't enough to stop the company.
Merck, meanwhile, recently made its own acquisition, agreeing to buy Cidara Therapeutics. The purpose of the deal was to get access to Cidara's influenza drug candidate. Like Pfizer, Merck is demonstrating that it can effectively manage the challenges of patent expirations.
For investors who think in decades, not days, the lagging performance of Merck and Pfizer presents a buying opportunity. Dividend lovers will likely prefer Merck and its current 3.5% yield, because its dividend payout ratio is a very reasonable 45% or so. Pfizer's 6.7% yield is now much higher, but it comes along with a worrying payout ratio of 100%.
Teva looks expensive after a big rally
There's no reason that Teva's stock price couldn't keep running higher, but long-term investors should keep its valuation in mind. The price-to-earnings ratio is currently sitting just shy of 50, indicating exactly how much good news investors have priced into the shares. Pfizer's P/E ratio is 15 and Merck's is 13.
You can buy the market darling with the mediocre history, or get a bargain price on two well-respected industry leaders as they continue to successfully navigate the drug industry's normal ups and downs. Most long-term investors should probably go with the still-out-of-favor Pfizer or Merck.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Forget Teva Pharmaceutical and Buy These Unstoppable Stocks Instead?

Teva Pharmaceutical Industries Limited’s TEVA stock has been trading above its 50-day and 200-day simple moving averages (SMAs) since the end of October. It achieved the golden cross in mid-September. The 50-day moving average is a short-term indicator, while the 200-day moving average is a longer-term indicator. When the 50-day moving average crosses above the 200-day moving average on a stock’s price chart, it's known as a "golden cross," a bullish signal suggesting potential for a prolonged upward trend. The crossover indicates that the stock's recent price performance has been stronger than its longer-term performance.
The 50-day SMA has been above the 200-day SMA since it achieved the golden cross, a positive sign for the stock’s future gains. A key driver of Teva’s bullish stock performance was the announcement made in early November that it had concluded the Inflation Reduction Act (IRA) pricing negotiations for Teva’s key branded drug, Austedo. The drug was selected by CMS for Medicare price setting, beginning in 2027. Teva said the outcome of the negotiations went as expected and raised its 2025 Austedo sales expectations. It also maintained its 2027 revenue target of more than $2.5 billion for Austedo sales and expects sales to exceed $3 billion by 2030.
Image Source: Zacks Investment Research
Let’s understand Teva’s strengths and weaknesses to better analyze how to play the stock after it reaches this important support level.
TEVA’s New Branded Drugs Driving Growth
The company is seeing continued market share growth of its newest branded drugs, Austedo, Ajovy and Uzedy. Collectively, sales of Austedo, Ajovy and Uzedy rose 33% year over year to $800 million in the third quarter.
Austedo sales rose 33% in the first nine months of 2025. Teva expects Austedo annual revenues to be more than $2.5 billion by 2027 and exceed $3 billion by 2030. The Austedo franchise got a boost from the launch of Austedo XR, a new once-daily formulation of Austedo. Teva expects to launch Austedo in European markets in 2026.
Though IRA pricing negotiations have concluded, CMS is expected to formally announce the agreement on a maximum fair price for Austedo in November 2025. The newly established U.S. government pricing will take effect on Jan. 1, 2027, and will apply to eligible Medicare beneficiaries.
Ajovy sales rose 27% in the first nine months of 2025. Though Teva is seeing slightly slower growth of Ajovy in the U.S. market, it expects sales to benefit from continued patient growth and launches in additional countries in Europe and international markets.
Uzedy (risperidone) extended-release injectable suspension, a long-acting subcutaneous atypical antipsychotic injection for the treatment of schizophrenia in adults, was launched in May 2023 in the United States. In 2024, Teva recorded Uzedy sales of approximately $117 million, more than its target of approximately $100 million. In the first nine months of 2025, Uzedy’s sales rose 82% to $136 million, with total sales expected to be between $190 million and $200 million in 2025.
The company has also made decent progress with its branded pipeline, which includes olanzapine, a long-acting subcutaneous injectable (LAI) for treating schizophrenia and duvakitug, its anti-TL1A therapy for inflammatory bowel diseases (IBD), ulcerative colitis (UC) and Crohn’s disease (CD). Teva has partnered with Sanofi SNY for duvakitug to maximize the value of the asset. Teva and Sanofi will equally share the development costs globally. Sanofi recently initiated phase III studies on duvakitug for both UC and CD indications. The company expects to file a new drug application to seek approval for olanzapine before the year ends.
Teva anticipates generating more than $5 billion in revenues from its branded products by 2030.
TEVA’s Strengthening Generics and Biosimilar Pipeline
Over the past few quarters, Teva has successfully launched several biosimilars and other high-value complex generics, including Novo Nordisk’s NVO Victoza, Roche’s cancer drugs Rituxan (Truxima) and Herceptin (Herzuma), AbbVie’s Humira (Simlandi), J&J’s Stelara (Selarsdi), Novartis’ Sandostatin LAR, AstraZeneca’s Soliris (Epysqli) and Novo Nordisk’s Saxenda.
Teva has a decent pipeline of biosimilars, with some being developed in partnership with Alvotech. The pipeline comprises high-value complex generics like Simlandi and Selarsdi, the first two biosimilars to be launched in the United States under the Teva and Alvotech strategic partnership, which includes seven biosimilars.
Biosimilar versions of Amgen’s Prolia and Xgeva were approved in the EU in November 2025 and are under review in the United States. Biosimilar versions of Regeneron’s Eylea and J&J’s Simponi, which are in collaboration with Alvotech, are under review in the United States. A biosimilar of Xolair is in late-stage development.
Teva’s U.S. generics/biosimilars business looks stable now, despite headwinds, much more than it has been in years. Teva’s U.S. generics/biosimilars business rose 15% in the United States in 2024, driven by new product launches. In the first nine months of 2025, U.S. generics/biosimilars sales were almost flat as a strong biosimilars performance was offset by lower revenues from the generic versions of Bristol-Myers’ BMY Revlimid and Victoza. However, Teva expects its global generics business to improve going forward, driven by complex generic launches in the United States, several generic launches in ex-U.S. markets and new biosimilar launches.
The company aims to double its global biosimilars sales by 2027. Teva launched three biosimilars, Simlandi, Selarsdi and Epysqli in the United States in 2025 and expects five additional launches by 2027.
TEVA’s Various Headwinds in 2025
Teva’s generics business has been slightly soft in 2025 due to tough year-over-year comparables, increased competitive pressure and softness in certain markets. In International Markets, generics sales are being hurt by the divestment of Teva’s business venture in Japan. In 2025, Teva expects its generics business to be flat to up in low single digits in constant currency terms.
The company also faces competitive pressure for some of its key branded drugs. It also has a high debt load and faces some price-fixing charges. The company may face a revenue cliff for lenalidomide capsules (the generic version of Bristol-Myers’ Revlimid) in 2026. Moreover, the competitive environment for Truxima, Teva's biosimilar of Roche's Rituxan, is becoming more challenging, given other Rituxan biosimilar launches by Pfizer and Amgen.
TEVA’s Price, Valuation & Estimate Discussion
Teva stock has risen 28.6% so far this year compared with the industry’s 28.2% increase.
TEVA Stock Outperforms Industry YTD
Image Source: Zacks Investment Research
The stock is trading at an attractive valuation relative to the industry. Going by the price/earnings ratio, the company shares currently trade at 10.39 on a forward 12-month basis, lower than 14.37 for the industry. However, the stock is trading above its 5-year mean of 4.29.
TEVA Stock Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for earnings has risen from $2.55 per share to $2.61 for 2025 and has been stable at $2.73 for 2026 over the past 60 days.
TEVA’s Estimate Movement
Image Source: Zacks Investment Research
Stay Invested in Teva’s Stock
Despite the various headwinds discussed above, Teva’s newer drugs, Austedo, Uzedy and Ajovy are reviving top-line growth. Although sales of generic drugs have been slightly soft in 2025, the company is experiencing strong performance from biosimilars, driven by growth from both existing and new products.
With the nationwide settlement of the costly opioid litigations, new product launches, stability in the generics segment with contributions from biosimilars, and a robust pipeline of biosimilars and branded products, the path for Teva’s long-term growth is becoming clearer. The company is saving costs and improving margins through the optimization of operations for efficiency while also lowering the debt on its balance sheet. Teva expects an adjusted operating margin of 30% by 2027 through cost savings and the continued growth of its branded drugs.
In the past few months, Fitch, Moody's and S&P have upgraded their respective credit outlook for Teva, reflecting improved growth prospects.
TEVA’s recent stock price appreciation, attractive valuation, improving branded and biosimilar pipeline and the prospect of growth in sales and profits are good enough reasons to stay invested in this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Teva Stock Trading Above 200- & 50-Day SMA for 2 Months: How to Play

Johnson & Johnson JNJ faces several challenges, like potential losses from expiring drug patents, ongoing legal battles related to its talc powder and broader macroeconomic uncertainties. Here, we discuss the various headwinds that J&J faces and see if the drug and medical devices giant is well-equipped to navigate them.
Stelara LOE and Medicare Part D Redesign Hurting J&J’s Sales
J&J lost U.S. patent exclusivity for its multibillion-dollar product Stelara in 2025. Stelara was a key top-line driver for J&J, accounting for around 18% of J&J’s Innovative Medicine unit’s sales in 2024, before it lost patent exclusivity in 2025.
Several biosimilar versions of Stelara have been launched in the United States in 2025. According to patent settlements and license agreements, Amgen AMGN,Teva Pharmaceutical Industries TEVA/Alvotech, Samsung Bioepis/Sandoz and some other companies have launched Stelara biosimilars this year.
The launch of generics by Amgen, Teva and other companies is significantly eroding Stelara’s sales and hurting J&J’s sales and profits in 2025. Stelara sales declined around 40% in the first nine months of 2025. In the first nine months of 2025, the negative impact of the Stelara sales decline, due to biosimilar competition, was approximately 10.1% on the Innovative Medicine segment operational sales.
Stelara biosimilar competition is expected to accelerate as the number of biosimilar entrants increases. Stelara sales are expected to come down from almost $11 billion in 2023 to around $3.0 billion in 2027, per our estimates.
In addition, sales in 2025 are being hurt by the impact of the Medicare Part D redesign under the Inflation Reduction Act (IRA). Among other measures, the IRA requires the U.S. Department of Health and Human Services (HHS) to effectively set prices for certain single-source drugs and biologics reimbursed under Medicare Part B and Part D.
In August 2023, the HHS selected J&J’s drugs, Xarelto, Stelara and Imbruvica as one of the first 10 medicines subject to government-set prices. J&J expects a negative impact of approximately $2 billion in sales due to the Medicare Part D redesign in 2025. The Part D redesign is mainly hurting sales of drugs like Stelara, Erleada, Imbruvica and pulmonary hypertension drugs.
JNJ’s Talc Lawsuits and MedTech China are Overhangs
J&J faces more than 73,000 lawsuits for its talc-based products, primarily baby powders. The lawsuits allege that its talc products contain asbestos, which caused many women to develop ovarian cancer. J&J insists that its talc-based products are safe and do not cause cancer. The company permanently discontinued the sales of the talc-based Johnson’s Baby Powder.
In April, a bankruptcy court in Texas rejected J&J’s proposed bankruptcy plan to settle its talc lawsuits after a two-week trial in Houston. J&J has gone back to the traditional tort system to fight the lawsuits individually, with its bankruptcy strategy to settle the lawsuits failing for the third time.
In the MedTech segment, though overall sales improved in the past two quarters, J&J continues to face headwinds in China. Sales in China are being hurt by the impact of the volume-based procurement (VBP) program, which is a government-driven cost containment effort in China. J&J expects continued impacts from VBP issues in China as the program continues to expand across provinces and products.
Can J&J Navigate the Challenges?
Despite headwinds like softness in the MedTech unit, the legal battle surrounding its talc lawsuits, the Stelara patent cliff and the impact of Part D redesign, J&J looks quite confident that it will be able to navigate these challenges.
J&J has recorded a strong operational performance so far in 2025, backed by double-digit growth in revenues from key brands and contributions from new launches.
J&J expects operational sales growth in both the Innovative Medicine and MedTech segments to be higher in 2026.
In 2026, J&J expects accelerated growth in the Innovative Medicine segment despite the loss of exclusivity of Stelara. The growth is expected to be driven by its key products, such as Darzalex, Tremfya, Spravato and Erleada as well as new drugs like Carvykti, Tecvayli and Talvey and recently launched products, including Tremfya in inflammatory bowel disease (IBD), Rybrevant plus Lazcluze in non-small cell lung cancer and Inlexzo in bladder cancer.
In the MedTech segment, J&J expects better growth than 2025 levels, driven by increased adoption of newly launched products across all MedTech platforms and increased focus on higher-growth markets. J&J expects to launch new products like Shockwave C2 Aero catheter and Tecnis intraocular lens in the United States, as well as make a regulatory submission for the OTTAVA robotic surgical system in 2026. These new products may also contribute to growth in 2026. Moreover, the potential separation of its Orthopaedics franchise into a standalone orthopedics-focused company, called DePuy Synthes, should improve its MedTech unit’s growth and margins, as the Orthopaedics franchise has been a slow-growth business for J&J.
JNJ’s Price Performance, Valuation and Estimates
J&J’s shares have outperformed the industry year to date. The stock has risen 39.7% in the year-to-date period compared witha 14.1% increase for the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, J&J is slightly expensive. Going by the price/earnings ratio, the company’s shares currently trade at 17.65 forward earnings, higher than 16.68 for the industry. The stock is also trading above its five-year mean of 15.65.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2025 earnings has risen from $10.86 per share to $10.87, while that for 2026 has increased from $11.38 to $11.48 over the past 60 days.
Image Source: Zacks Investment Research
J&J has a Zacks Rank #3 (Hold) currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can J&J Offset Stelara LOE, MedTech China and Legal Headwinds in 2026?

(RTTNews) - Teva Pharmaceuticals International, a subsidiary of Teva Pharmaceutical Industries (TEVA), announced that the European Commission has granted marketing authorizations for its two denosumab biosimilar candidates PONLIMSI, a biosimilar to Prolia and DEGEVMA, a biosimilar to Xgeva. Teva plans to launch both products in key European markets in the coming months.
Steffen Nock, SVP Head of Biosimilars & Chief Science Officer, said: "This approval represents an important step forward in increasing patient access to biosimilar therapies for serious bone conditions."
For More Such Health News, visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Teva: European Commission Grants Marketing Authorizations For Biosimilars PONLIMSI, DEGEVMA

Key Points
Quarterly-filed Form 13Fs can clue investors into which stocks and trends are piquing the interest of Wall Street's brightest money managers.
Billionaire Stanley Druckenmiller dumped his fund's holdings in artificial intelligence (AI) stocks Nvidia and Palantir -- and profit-taking may not tell the full story.
Meanwhile, Duquesne's investment chief loaded up on a drug developer that's shifted its focus to higher-growth initiatives and has put its legal headwinds firmly in the back seat.
For many investors, earnings season is viewed as the most-telling event of each quarter. This is the six-week period where a majority of S&P 500 companies lift the hood on their quarterly operating results for Wall Street and investors.
But this isn't the only quarterly event that can provide investors with invaluable information. The filing of Form 13Fs with the Securities and Exchange Commission is, arguably, just as important.
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A 13F is a required filing no later than 45 calendar days following the end to a quarter that allows investors to track which stocks, exchange-traded funds (ETFs), and select options Wall Street's brightest money managers have been buying and selling. It's an easy way to clue investors into the stocks and trends piquing the interest of the market's most successful fund managers.
Though Warren Buffett is, commonly, the most-followed of all asset managers, he's far from the only billionaire with a knack for generating outsize returns. Duquesne Family Office's billionaire boss, Stanley Druckenmiller, knows a thing or two about spotting a good deal.
What's been particularly interesting about Druckenmiller's trading activity in recent quarters has been his willingness to play the contrarian. He's completely sold out of two of Wall Street's hottest artificial intelligence (AI) stocks, Nvidia (NASDAQ: NVDA) and Palantir Technologies (NASDAQ: PLTR), and absolutely loaded up on shares of a previously struggling drug stock that's now soaring.
Duquesne Family Office's billionaire boss gives Nvidia and Palantir the boot
In terms of hardware and application, a strong argument can be made that Nvidia and Palantir are the two biggest success stories in the AI arena. Nvidia's AI-graphics processing units (GPUs) are the top option for businesses operating AI-accelerated data centers, with no external competitors coming particularly close to matching the compute abilities of its chips.
Meanwhile, Palantir's Gotham and Foundry software-as-a-service platforms have no one-for-one replacements, which ensures steady operating cash flow and double-digit sales growth. Gotham is Palantir's primary moneymaker, with the U.S. government and its allies relying on this AI-driven platform to plan and oversee military operations.
In spite of these competitive advantages, billionaire Stanley Druckenmiller sent both stocks packing, During the third quarter of 2024, Duquesne's investment chief dumped all 214,060 shares held of Nvidia. As for Palantir, 769,965 shares were given the boot between July 1, 2024, and March 31, 2025.
It's certainly plausible and logical that Druckenmiller's exit of Nvidia and Palantir stocks had to do with simple profit-taking. The average security in Duquesne Family Office's $4.1 billion investment portfolio has been held less than seven months, which demonstrates a willingness for Druckenmiller to take profits when the opportunity presents itself.
But there may be more here than meets the eye.
In May 2024, Druckenmiller noted in an interview with CNBC that, "AI might be a little overhyped now, but underhyped long term." This statement points to the trend that every game-changing technology and hyped innovation for the last 30 years, including the internet, has navigated its way through an early innings bubble. Investors persistently overshoot when it comes to forecasting the early utility and adoption rates of new technologies, and artificial intelligence is unlikely to be the exception.
Billionaire Stanley Druckenmiller may have also been concerned about Nvidia's and Palantir's rapidly rising valuations. Although valuing stocks is a subjective process, the time-tested price-to-sales (P/S) ratio has left little room for interpretation when it comes to evaluating Wall Street's AI darlings.
History tells us that P/S ratios above 30 for megacap/market-leading businesses on the leading edge of a next-big-trend aren't sustainable. In fact, they typically signal the presence of a bubble. As recently as last week, Nvidia's and Palantir's P/S ratios hit 31 and 152, respectively.
If an AI bubble forms and bursts, both stocks would have proverbial bullseyes on their backs.
Stanley Druckenmiller is piling into this turnaround drug stock
But while Duquesne Family Office's billionaire chief was busy disposing of his fund's entire stakes in Nvidia and Palantir, he was concurrently buying shares of pharmaceutical stock Teva Pharmaceutical Industries (NYSE: TEVA) hand over fist.
Teva is the textbook definition of a contrarian play and turnaround stock. For a nearly eight-year period, everything that could go wrong did go wrong for the company and its shareholders. It lost exclusivity on its then-blockbuster multiple sclerosis drug Copaxone, witnessed its pricing power on generic drugs deteriorate, and faced a host of litigation, including its role in the opioid crisis.
However, these gray clouds have begun to clear, which has paved a path for billionaire Stanley Druckenmiller to pile in. Over the four-quarter period between July 1, 2024 and June 30, 2025, Duquesne's 13Fs show:
Q3 2024: 1,427,950 shares purchased
Q4 2024: 7,569,450 shares purchased
Q1 2025: 5,882,350 shares purchased
Q2 2025: 1,089,189 shares purchased (15,968,935 total shares held)
Teva has quickly become the second-largest holding in Druckenmiller's fund, and its shares have rallied a cool 218% since the midpoint of 2023.
Perhaps the biggest catalyst for Teva was pushing outstanding litigation into the back seat. In early 2023, it settled its opioid case with 48 states. The $4.25 billion agreement is spread over 13 years and includes $1.2 billion worth of generic Narcan, the opioid overdose reversal drug, which Teva will supply to states. With this settlement now concrete, Teva's management was able to look to the future and begin transforming.
Under former CEO and turnaround specialist Kare Schultz, Teva became leaner and sold some of its non-core assets. With CEO Richard Francis now at the helm, the company has gone on the offensive. Francis has shifted some of Teva's focus away from generics and toward novel-drug development. Even though in-house therapies have finite periods of sales exclusivity, the growth rates and operating margin associated with brand-name drugs is notably higher than volume-driven generic therapies.
In Teva Pharmaceutical's latest operating results, it once again raised its full-year and longer-term peak sales outlook for tardive dyskinesia drug Austedo, which should now top $2 billion in full-year revenue. This push toward brand-name therapies is more than offsetting generic-drug price weakness.
Furthermore, Teva's management has done wonders with the company's balance sheet. Shortly after the acquisition of Actavis, net debt surpassed $35 billion. As of Sept. 30, net debt clocked in below $16.6 billion. There's now more financial flexibility to invest in faster growing initiatives.
With a forward price-to-earnings ratio of just 8.6, Teva Pharmaceutical still appears to be a bargain.
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Sean Williams has positions in Teva Pharmaceutical Industries. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool has a disclosure policy.
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