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.
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.
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