According to Bloomberg, the French luxury goods company LVMH became the European company with the highest market capitalization ($356 billion), surpassing the Danish pharmaceutical company Novo Nordisk ($355 billion) for the first time since September 2023. This change was driven by the higher price of Wegovy (a weight loss drug) in the U.S. and increased competition, which caused Novo Nordisk’s stock to fall by 40% since June.
At its peak (2019), Novo Nordisk was worth more than the entire Danish economy.
Novo Nordisk’s value has increased in recent years due to Wegovy’s success, peaking in 2019 when it was worth more than the entire Danish economy. Meanwhile, the value of LVMH (Moët Hennessy Louis Vuitton), which owns 60 subsidiaries and 75 brands (including Christian Dior, Bulgari, Tiffany & Co., etc.), declined because of reduced demand for luxury goods from China.
LVMH’s stock has rebounded by 20% since mid-November, driven by signs of recovery in China’s economy and the potential for increased demand in the U.S. due to favorable tax and regulatory policies. However, the downturn of Novo Nordisk has allowed LVMH to take the top spot. The luxury goods sector is expected to slightly recover in 2025, following a tough 2024.
What is fyi.news?
