Pfizer stock is down 21% in the last 3 months.
Johnson & Johnson is down 8.4% in the last 6 months.
Moderna is down 60.5% in the last 6 months.
The companies that made the vaccines have all had pretty bad performances and a lot of people are getting conspiratorial on the reason, but it’s pretty simple.
Hype
Just an example, Pfizer.
Pfizer stock is up 50% over the last 5 years.
Which the company made 52 billion in 2016 and declined 10 billon, averaging 42 billion in revenue a year from 2017 to 2020.
2021 with the vaccine and other products, it was a big jump, at 81 billion, due largely due to the vaccine.
Profit also was an increase, at 23.8 billion, up from 9.6 billion in 2020.
Pfizer, Johnson & Johnson & Moderna all made gains with the vaccine, but the problem is this.
It’s a one time product.
A lot of people for years have tried to mention vaccines as all about money, but the truth is they are pretty low margin products that people take once and never take again.
The US is now 76% vaccinated at one dose and will likely hit 90% by summer 2022.
This means that boost is over for these companies and while they have some extra profit, they will go back to normal numbers.
This is pretty simple, but the market in 2020, bought into this hype the vaccine business would be larger than what it was and it was about the same profit as a standard vaccine.
The reason this is important is just a bunch of people in the anti vaccine camp are running around crying conspiracy over the stock dropping, when it’s to be expected when the reason for the surge in revenue to end.
This is pretty similar to something like Peloton going up or an airline stock dropping during COVID.
It changed and now the COVID vaccine will be like other vaccines, which are lower margin products sold once and never again.