The stock price of MRK has experienced a decrease from October 25 to October 291. Merck's stock decline can be attributed to the following factors:
- Acquisition Costs: The company's acquisition of Modifi Biosciences for $1.3 billion is a significant event that could impact its financials and market position. The upfront payment of $30 million and the potential milestone payments could strain the company's finances2.
- Earnings Estimates Decline: Merck's earnings estimates have declined from $8.01 to $7.80 per share over the past 30 days, and for 2025, the estimates have dropped from $9.70 to $9.64 per share. This decline in earnings expectations could be contributing to the stock's decline3.
- Patent Expiration Concerns: The anticipated revenue decline from Merck's leading cancer immunotherapy, Keytruda, due to patent expiration later in the decade could be a concern for investors2.
- Oil Prices Drop: The recent drop in oil prices, which Merck's acquisition of Modifi Biosciences can be seen as a response to geopolitical events, could be impacting the stock's value. The Nasdaq Composite advanced 0.3% on Monday, October 28, 2024, as investors prepared for big tech earnings and economic reports, and the fear-gauge CBOE Volatility Index (VIX) decreased 2.6% to 19.80. The S&P 500 posted 15 new 52-week highs and two new lows; the Nasdaq Composite recorded 101 new highs and 67 new lows. Oil prices dropped after Israeli airstrikes against Iran, which did not hit crucial oil facilities, on Sunday, October 27, 202445.
In conclusion, the decline in Merck's stock price can be attributed to a combination of factors including acquisition costs, earnings estimates decline, patent expiration concerns, and oil prices drop.
10/30/2024 01:42am
