The substantial drop is primarily attributed to a sharp decrease in demand for Pfizer’s once-thriving Covid-19 products, leading to a rapid decline in sales and prompting investors to abandon ship.
Historically regarded as a low-risk investment, the abrupt downturn has left long-term PFE investors grappling with losses.
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Investors PFE stakes at loss after a poor 2023
As mentioned earlier, 2023 is the worst-known year for Pfizer in terms of its stock market performance. Earlier this week, PFE crumbled to a 10-year low after the company issued a worse-than-anticipated forecast for its fiscal 2024 year.
According to chart provider Barchart, an investment of $10,000 in PFE shares five years ago would be worth $7.766 today, including dividends. That represents a return on investment (ROI) of -22%.
“Not bad!” Barchart sarcastically commented on this return in its December 15 post.
This marks a significant blow for investors, particularly institutions that have multi-million-dollar stakes in the company. As one of the largest pharmaceutical companies globally, Pfizer has often been viewed as a stable and established player in the healthcare sector.
That trend was disrupted this year after the company started reporting substantial losses and facing significant revenue declines due to weak sales of its coronavirus-related products including Comirnaty, Paxlovid, and vaccines.
At the time of publication, shares of PFE were sitting at $26.13, a new more than a decade low after slipping 2% on Thursday.
Over the past month, the stock tumbled over 13.4%, and more than 49% since the beginning of 2023.
Capital Group, one of the major stakeholders in Pfizer, sold an additional 13% of their PFE stake last quarter, amounting to more than 32 million shares. The move comes after the investment firm offloaded 20% of its position during the June quarter.
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