Pfizer's New Activist Investor

And, Arcadium Lithium's takeover talks.

October 07, 2024

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Today is Monday, October 7, 2024.

The Early Bird Index today is 73.24.

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Pfizer's New Activist Investor

It’s been a rough year for Pfizer (NYSE: PFE), but now the pharmaceutical giant may have to contend with another outside challenge.

Details: The Wall Street Journal reported Sunday that activist investor Starboard Value has taken a roughly $1 billion stake in Pfizer and wants the company to turn its performance around.

  • Pfizer has not commented on the report.

Definition: An activist investor buys a large stake in a company to influence change.

Background: Starboard has recently taken an activist stake in Starbucks (Nasdaq: SBUX) and Autodesk (Nasdaq: ADSK).

Stock Price: Pfizer’s stock is down 3.87% this year, although the stock is flat in the last 30 days.

Early Bird’s Nest Egg Gains: Pfizer is having a challenging year because of several major factors.

  • The primary reason for Pfizer's struggles is the significant drop in demand for its COVID-19 products. Sales of its COVID-19 vaccine and its COVID-19 treatment Paxlovid have plummeted as the pandemic has waned.

  • Pfizer faces revenue losses due to upcoming patent expirations.

Final Thoughts: It will be interesting to see if this activist investor report impacts the stock price of Pfizer today.

Notables

Notable Earnings Today: The Duckhorn Portfolio (NYSE: NAPA).

Notable IPOs Today: SilverBox Corp IV (NYSE: SBXD).

Notable Equity Crowdfunding Campaigns Ending Today: LUWI (StartEngine), HapTech Holdings (Wefunder).

Notable Economic Events Today: Consumer Credit (3:00 p.m. ET).

Arcadium Lithium's Takeover Talks

Lithium chemicals producer Arcadium Lithium (NYSE: ALTM) said Sunday it has been approached by Rio Tinto (OTCMKTS: RTNTF) regarding a potential takeover of the company.

Details: Both companies said the approach is non-binding and there is no certainty that any deal will occur.

Final Thoughts: Arcadium Lithium is down 54% this year. Rio Tinto’s stock price is down nearly 2% in 2024.

Avalanche Jumps on Sunday

The price of the cryptocurrency Avalanche jumped about 5% on Sunday, stronger than most other digital assets.

Details: The overall sentiment for Avalanche is bullish. Trading volumes for Avalanche are also increasing.

Price: Avalanche is up 28% in the last 30 days.

Final Thoughts: While Avalanche is surging, it is sometimes very volatile.

Going Green: Big Oil Urges Trump Not to Gut Biden’s Climate Law (Wall Street Journal)

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.