The stock price of PFE has experienced a decrease of 0.7% on October 31, 20241. Today's decline in Pfizer's stock price can be attributed to the following factors:
- Q3 Earnings and Guidance: Pfizer's stock price dropped 1.4% on October 29 due to concerns over CEO Albert Bourla’s defense of costly acquisitions criticized by activist investor Starboard Value. Despite Pfizer beating Q3 estimates with $17.7 billion in revenue and over $6 billion in adjusted net income, Starboard's view that the acquisitions wasted funds dampened investor sentiment. Even though Pfizer raised its 2024 guidance to $61- 64 billion in revenue and $2.75 per share - 2.95 per share in adjusted earnings, the market remained unconvinced about the strategy's potential for long-term profitability2.
- Market Conditions: Stocks opened lower on October 31 as Wall Street sifted through the latest round of corporate earnings reports. Data showing cooling in the labor market also weighed on sentiment. However, the main benchmarks quickly came off their session lows, with two of the three climbing into positive territory by the close3. This market condition could have influenced the decline in PFE stock.
In conclusion, the decline in Pfizer's stock price today is likely a result of a combination of factors including concerns over the company's acquisition strategy and broader market conditions.
10/31/2024 10:19pm
