From Nasdaq: 2025-05-27 08:17:00

In a podcast, Motley Fool analysts discuss Walmart’s response to tariff uncertainty, Netflix’s growing ad business, and YouTube’s strategy for capturing maximum attention. Another segment covers the executive order on prescription drug prices and challenges for pharmaceutical companies.

The Motley Fool’s analyst team recommends 10 best stocks to invest in right now, excluding Walmart. The team has a history of market-crushing performance, with an average return of 957% compared to the S&P 500’s 167%.

Walmart faces pressure to maintain low prices amidst tariff uncertainty, as CFO John David Rainey highlights challenges in absorbing price increases. The retailer’s e-commerce business shows growth, but its historically high valuation raises investor caution about future profitability.

Netflix’s ad business sees a 50% increase, with an ad tier reaching 94 million monthly users. The platform’s strategy to target younger demographics and offer a variety of content contributes to its success in ad revenue generation.

YouTube plans to capitalize on high viewer attention by placing ads strategically during cliffhanger moments in videos. The platform aims to increase ad pricing by offering premium ad space at crucial points in content.

An executive order on prescription drug pricing aims to set US drug prices at the lowest level among developed countries. However, the order lacks enforcement mechanisms, requiring legislative and judicial support for effective implementation.

Pharmacy benefit managers (PBMs) like United Healthcare and CVS face scrutiny as middlemen in drug pricing negotiations. The focus on PBMs aims to address the spread between list prices and rebated prices that contribute to high drug costs.

The proposed most favored nation pricing would impact pharmaceutical companies’ profits, potentially leading to lower margins. The goal is to align US drug prices with international standards, but challenges in implementation and global coordination remain.

The executive order’s broader scope targets private market drug sales, requiring cooperation from companies to lower prices voluntarily. The long-term impact on pharmaceutical companies and healthcare providers remains uncertain amidst legal and regulatory challenges.

The healthcare industry, including PBMs and healthcare companies, may face disruption from changes in drug pricing policies. The focus on eliminating middlemen and reducing drug costs could reshape the industry’s profit dynamics and business models.



Read more at Nasdaq: “If Walmart Is Under Pressure to Raise Prices, It’s Going to Have Broader Effects on the Economy.”