Biogen Inc (NASDAQ: BIIB)
Biogen stock has had a rough time in the market recently. After producing an earnings report that showed big misses on both top line revenue and earnings per share, the company’s stock started to fall dramatically; losing more nearly $50 per share over the past 4 days. However, it’s my opinion that the fall has reached the floor and we’re going to start see the value of the stock bounce back. Here’s why…
Biogen Earnings Were Bad, But It’s Not A Trend
When things happen over and over again, we start to see a solid trend. For example, take a look at AMZN. The company has proven a trend of negative earnings. With the exclusion of the Q4 2014 report, nearly everything we’ve seen from Amazon for for the past couple of years has been losses. However, that’s not the case with Biogen. Just look at the last report, not only did the company beat expectations by $0.31 on EPS, they proved their strenght in their pipeline. Realistically, that’s the trend we’ve come to expect from BIIB.
The Market Is Starting To Support BIIB Growth
There’s no doubt in my mind that the last four days in the market have been absolutely horrible for Biogen. Just look at the chart; you can’t argue facts. Now, take a second look at that chart…Does it seem as though the market is starting to support growth from the company? ABSO-FRIGGIN-LUTELY! The reality is that technically, what we’re seeing is the beginning of a floor. Now, it’s time to start looking for recovery.
Biogen Isn’t Just Massive, They’re An Awesome Company!
In the long run, it’s clear that Biogen will continue to grow. Think about it, when we talk about Biogen, we talk about a company that can be compared to the biotech version of Apple! When it comes to market capitalization BIIB is off the charts, their pipeline of products is one to be reckoned with, and their management is great! Where do you see long term losses in that?
Everyone Will Hit A Hurdle
No matter who you are, what company you are, or where you came from, at some point in life, you will find a hurdle in the road. The missed earnings from BIIB can be considered to be just that, a hurdle. However, we’re talking about a strong company with great management, an incredible pipeline of products and prospects, as well as massive market capitalization. All in all, I see no reason why BIIB won’t be able to get over this one. So, in the long run, I’m expecting growth and I see this down time as a great opportunity to get in on that growth for a low cost.
What Do You Think?
Where do you think BIIB is headed and why? Let us know in the comments below!