What's going to happen to JNJ stocks after their vaccine was faulted?
Johnson & Johnson is a multinational corporation that has more or less 250 subsidiary companies under it, operating in 60 different countries and caters to 175 countries.
This company was founded in 1886 and now is considered one of the most valuable companies around the globe. The company's common stock is part of Dow Jones Industrial Average, and trades using the kicker JNJ.
Recently, the company's COVID vaccine was put under pressure as multiple concerns were raised against it. Earlier this year, reports about the company's vaccine causing blood clots in women had been discussed and regulators hinted that the use of the said vaccine should temporarily be paused.
Following this, J&J announced that a single shot from their COVID vaccine was good for 8 months and has positive results against the delta variant, however, it was countered by another study that shows low number of antibodies being released when fighting off the delta, as well as the lambda variant.
After further research, the US regulators announced that the J&J shot may cause a special condition called Guillain-Barre syndrome, a condition where in the immune system becomes less responsive, and warned against the use of the vaccine which is in line with their prior discussion.
Amidst this, the company released their forecast toppling earnings results for Q2 showing that the earnings increased by 48.5% while the sales grew by 27.1%. Analysts says that this is due to the results of last year being the worse due to the COVID pandemic.
The JNJ stock spiked in price for a bit after the results were released, but has yet to show any negative movement in response to the vaccine's pull-out. Analysts mentioned that even if there would be an impact to the stock, it would be temporary.
The company remains bullish to the stock, as well as other investors and analysts as the main products of J&J would not be affected by the pause on the vaccine usage. The company even went through a $5 billion deal to take care of the lawsuits relative to their opioid production.
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