BNTX - 2 Coronavirus Stocks That Will Falter in a Market Crash
The ongoing race to make vaccines and therapies for the coronavirus has led to a tremendous amount of speculation in the market. For some stocks, these expectations have merely added fuel to the fire of a strong company's robust returns for shareholders. For others, like Sorrento Therapeutics (NASDAQ: SRNE) and BioNTech (NASDAQ: BNTX) , working on coronavirus products has created massively inflated prices that are vulnerable to melting down during a market crash.
Both stocks have grown more than 130% this year, but neither company has sales revenue from the successful commercialization of any pipeline project. Likewise, these companies aren't anywhere near completing any of their coronavirus programs, so recurring revenue is not necessarily around the corner. As highly risky biotech stocks, their prices are largely determined by sentiment surrounding their future revenue -- but there's no guarantee that this revenue will ever come. Both stocks are vulnerable to losing a lot of their value in a market correction or crash, and neither is a safe harbor for investors under the best of conditions. Let's analyze each company to understand why.
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2 Coronavirus Stocks That Will Falter in a Market Crash