BioNTech increases revenue by more than 12,500% thanks to the coronavirus
Yesterday, the German company BioNTech presented its quarterly results.
Analysts expected its revenue to grow from $41.76 million in August 2020 to $3,250 million, a growth of 7,600% in a single year.
However, expectations fell far short of reality. The company's turnover amounted to $5,310 million, almost double the forecast, a growth in its revenue of close to 12,615%.
This spectacular growth in revenue has not been mirrored in its share price, or at least it had not been until a month ago.
In mid-August 2020, BioNTech shares were trading close to $80 per share, a price similar to that of early 2021. As of mid-July 2021, the stock was slightly above $200 and in the last month, it has taken off.
Some analysts were already announcing that the company's results could be very good due to the new contracts signed by the company to distribute its vaccine in developed countries after the difficulties of AstraZeneca.
The company's prospects are quite good, thanks to its position to combat the coronavirus in developed countries. The need for an extra vaccine dose for reinforcement represents the potential future business, an increasingly close scenario due to the worrying evolution of the delta variant.
Currently, BioNTech's share price stands at $447, an increase of more than 450% in one year compared to an increase of more than 12,500% in the company's revenue.
Source: Admirals MetaTrader 5 - BNTX Daily Chart. Date Range: 9 March 2020 - 10 August 2021. Date Captured: 10 August 2021. Past performance is not a reliable indicator of future results.
The chart above shows the evolution of BioNTech's share price since the 9 March 2020 on a daily basis.
In it you can clearly see the phenomenal bullish rally that the company has enjoyed over the last month.
The upward tip of the exponential moving averages at 20 (blue), 50 (green) and 200 periods (red) indicates that it is buyers who currently hold the market power and that the uptrend continues.
However, after the 15% increase in share price yesterday, the RSI indicator is located in the overbought zone, close to 85 points and the distance between the price of BioNTech shares and the exponential moving averages is very high. These signals could indicate an imminent correction.
In the coming days, there could be a significant level of volatility present in BioNTech's share price; after presenting very solid fundamentals that indicate an undervalued value and a technical analysis that indicates an imminent correction.
With an Invest.MT5 account from Admirals, you can trade BioNTech and many more stocks! Click the banner below to open an account today:
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
- With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
- The Analysis is prepared by an independent analyst Javier Olivan, Freelance Contributor (hereinafter "Author") based on personal estimations.
- Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
- Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.