Investment opportunities

The COVID-19 pandemic has stunned the stock market in recent months. Every industry has been directly impacted by it in some way. While most industries have taken a negative turn, the biotech sector has been an interesting one to follow. In some ways, it has been a race to see which company is going to come out with the best solutions to end the pandemic first. With this comes a significant amount of market volatility, which will always have the attention of investors.

Which European Stocks Have Increased The Most?

Managing the COVID-19 outbreak is one of the main focuses globally today. Whether it’s the development of testing kits, vaccines or other treatments, when a new discovery is made, the stock market fluctuates in one way or another. Dating back to the end of March, the UK company Genedrive saw a major increase in their stock when it announced they were nearing the end of producing coronavirus tests. Tiziana saw a similar spike when it was announced they may have discovered a treatment for patients suffering from respiratory failure. Ambu is a company that designed tools to help medical professionals look into a patient’s lungs easier, while reducing the spread of coronavirus. These are just a few examples of European stocks that have experienced major price increases in the stock market as they’ve announced new developments.

Uncertainty Creates Market Volatility

When looking for investment opportunities, it’s important to understand biotech stocks can rise and fall significantly overnight. Testing is often very fluid and results may not end up exactly as companies anticipate. This uncertainty creates market volatility, which is largely driven by coverage of the developments in the news, as well as emotional decisions made by investors. Another aspect to consider is the number of resources some companies have when you think about countries that are still being quarantined. Delays are possible for many parts of the biotech industry and these delays play a big role in the amount of market volatility experienced.

Bottom Line For Biotech Investors

The biotech industry was expected to take a major turn for the better in 2020 before the COVID-19 pandemic came. While it’s still an important industry for medicine development and other aspects of the healthcare industry, it has had to shift its focus largely to the coronavirus. For investors looking for investment opportunities in the biotech industry, picking a company to win the race of developing a cure to COVID-19 is nearly impossible. Instead, stick with the fundamentals of investing and look at the company’s overall structure, how they have handled the pandemic, how they have performed historically during market volatility and more. In most cases, the companies with the best foundation have the highest chance of being the most valuable investment in the long-term.

Stock Investing Info pays close attention to the biotech industry to help investors understand what’s most important to focus on. Market volatility will continue over the coming months, so contact us if you have any questions or concerns about what investment opportunities you should consider pursuing.

Leave a Reply