Please ensure Javascript is enabled for purposes of website accessibility

Why BioNTech Stock Is Rising Today

By Keith Speights – Jun 21, 2021 at 11:58AM

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 biotech received some good news, but its gain probably was due to another reason.

What happened

Shares of BioNTech (BNTX 0.65%) were rising 5% as of 11:46 a.m. EDT on Monday. The only news for the drugmaker was that New Zealand announced provisional approval of the COVID-19 vaccine developed by BioNTech and Pfizer (PFE 0.72%) for 12 year olds to 15 year olds.

So what

It's more likely that BioNTech's shares moved higher today because of the overall stock market gain than the New Zealand approval. The entire population of New Zealand totals only around 5 million. The number of 12 year olds to 15 year olds is obviously much lower. That's not a big enough market to serve as a huge catalyst for the biotech stock.

Healthcare professional giving a shot to a patient.

Image source: Getty Images.

BioNTech often has daily swings (both up and down) of 5% or more. Sometimes, the gains and declines come on days when the company doesn't report any news that would explain the moves. Typically, though, when the overall market does well, so does BioNTech. That's probably what we're seeing with the stock today.

Now what

The main thing to watch with BioNTech going forward is the success that it and Pfizer have in securing supply deals for their COVID-19 vaccine for 2022 and beyond. The emergence of new coronavirus variants could improve the company's fortunes as governments continue their efforts to turn the tide on the pandemic.

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
$137.57 (0.65%) $0.89
Pfizer Inc. Stock Quote
Pfizer Inc.
PFE
$44.46 (0.72%) $0.32

*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
331%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/05/2022.

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.