The technical picture worsened for Eli Lilly stock in December as it completed a pattern known as a “Death Cross”. This pattern is drawn when a stock’s 50-day moving average breaks below its 200-day moving average. A Death Cross typically forecasts another 4-6 months of selling pressure for a stock.

All told, Lilly stock still gained 33% in 2024, outperforming the S&P 500 and Nasdaq Composite. Unfortunately, Lilly investors haven't had much to celebrate so far in 2025. On Jan. 14, shares of Lilly dropped by as much as 8% and ended the day down around 6%. Year-to-date, share prices are down about 1.4%.

Eli Lilly (NYSE: LLY) began a roll in late 2020 that lasted almost four years. This decline includes a sell-off earlier this week after Lilly cut its 2024 revenue guidance due to lower-than-expected demand for its obesity and diabetes drugs.

Eli Lilly ( LLY -6.59%) is the most valuable healthcare stock in the world, with a market capitalization of around $720 billion. For a while, it looked like it might be on track to be the first healthcare company to top a $1 trillion valuation, perhaps as early as this year.