Please ensure Javascript is enabled for purposes of website accessibility

Why BioNTech Stock Is Sinking Today

By Keith Speights - May 4, 2021 at 10:50AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The culprits appear to be profit-taking investors and a broader market sell-off.

What happened

Shares of BioNTech (BNTX 1.47%) were trading down by 17.6% as of 11:50 a.m. EDT on Tuesday. The German biotech didn't announce any news that would explain such a decline. Its COVID-19 vaccine partner, Pfizer (PFE -0.88%), even raised its 2021 sales forecast for BNT162b2 to $26 billion. So why did BioNTech's shares slide?

The most likely reason is that the mood of the overall stock market is weighing on this biotech stock. Some investors could also be taking profits off the table after BioNTech's big jump Monday on news that BNT162b2 could have an accelerated path to market in India.

Blue line with arrow trending down next to a coronavirus virion and stock prices in the background

Image source: Getty Images.

So what

It's important to remember that even after factoring in BioNTech's Tuesday morning decline, it's still up by more than 110% year to date. Some volatility is to be expected with high-flying stocks.

There are more reasons to be optimistic about BioNTech's prospects, though. Pfizer and BioNTech already have sealed deals to supply their COVID-19 vaccine to Canada and Israel beyond 2021. The companies are talking with other countries about similar agreements.

Now what

BioNTech could give investors a reason to jump back into the stock soon. The company is scheduled to announce its first-quarter results on May 10. Based on Pfizer's Tuesday update, BioNTech should have impressive revenue growth to report.

Keith Speights owns shares of Pfizer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

BioNTech SE Stock Quote
BioNTech SE
BNTX
$162.71 (1.47%) $2.36
Pfizer Inc. Stock Quote
Pfizer Inc.
PFE
$49.67 (-0.88%) $0.44

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
400%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/15/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.