In 2021, Pfizer‘s (NYSE: PFE) shares skyrocketed as the pharmaceutical giant dominated the vaccine industry with its launch of the COVID-19 jab, more than doubling in value and reporting a staggering $37 billion in vaccine sales.
Fast forward to 2023, and the once high-flying stock has taken a drastic turn, plummeting by nearly 40% year-to-date, according to data retrieved on October 16.
This sharp decline has wiped out much of its pandemic-era gains, leaving investors grappling with renewed uncertainty.
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Why is Pfizer stock down in 2023?
During their peak in December 2021, shares of Pfizer were trading at around $60 apiece, meaning the company’s stock price has nearly halved since then.
This underperformance can largely be attributed to declining revenues in 2023, primarily due to weaker COVID-19 vaccine sales. The biotech giant thrived on the unprecedented demand for its coronavirus products in 2021 and 2022; however, as expected, that trend has significantly weakened.
Pfizer was also aware of this and said it expected 2023 to be the low point and sales of its COVID-19 products. The contribution of these offerings this year is projected to plummet around 62% year-over-year to $21.5 billion.
PFE stock price analysis
At the time of publication, PFE was sitting at $32.11, after sliding 2.46% on Friday, October 13.
Over the past week, the biotech company’s shares are down nearly 3%, and more than 6.1% on the month.
At this price, PFE is trading just above a 3-year support level, located around the $31.95 mark. Losing this key threshold would pave the way for the stock to drop toward the next two supports at $30 and $26.41.
On the upside, Pfizer faces a resistance zone between $33.3 and $34. Clearing this barrier would allow PFE to reclaim its 100-day simple moving average (SMA) at $35.96.
In the meantime, Pfizer has been on an acquisition spree lately. The New York-based drugmaker is spending a whopping $43 billion to buy the cancer treatment specialist Seagen, among other recent purchases.
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