CNN Business Headline: Pfizer and Moderna created life-saving vaccines. So why are their stocks crumbling?
By Paul R. La Monica, CNN Business
Updated 2:51 PM ET, Fri May 20, 2022
All three stocks surged spectacularly in 2021, thanks largely to their Covid-19 vaccines’ success and strong sales. But 2022 hasn’t been as kind to them. Shares of Pfizer (PFE) are down about 15%, while its Comirnaty vaccine partner BioNTech (BNTX) has fallen 35%. Moderna (MRNA) has fared even worse, plunging more than 40%.
What gives? Sales of the Covid vaccines aren’t the problem. Pfizer has said that it expects revenue from Comirnaty, which it splits equally with BioNTech, to hit $32 billion in 2022 while Moderna has forecast that it could generate nearly $20 billion in revenue from its coronavirus shot this year.
Part of the reason for the stocks’ slump may simply be that investors already were anticipating strong demand and did what traders do best: Buy the rumor and sell the news. Pfizer’s stock soared more than 60% last year. BioNTech shot up more than 215% in 2021 while Moderna shares rose nearly 145%.