In light of recent events (primarily the global outbreak of coronavirus), the impact on the share market around the globe has been extreme. Of course, this is not the first time that a mass virus has broken out, however it is the first time in a long time that it has broken out so widely and so quickly. The outbreak of coronavirus has resulted in rising hysteria and panic, with individuals around the globe stocking up their shopping trolleys to the extreme and avoiding one another more than ever (this of course, is a positive, for the most part).
Johnson & Johnson shares, for example, are currently sitting at $129.95 USD, a definitive dip in value. Now, to be fair, Johnson & Johnson is a pharmaceutical company that has been struggling with its share value on and off slightly above the grade of normality since Mesothelioma lawsuits against the company started to become more and more common. Alas, on March 9th, the biggest sell off since the 2008 crisis rocked the share market, setting off global concerns surrounding an international economic slowdown.
This week, we have seen Johnson & Johnson shares inch ever so slowly back up. However, it is going to be a long journey back to normality in the stock market, especially considering the fact that coronavirus is nowhere near slowing down on an economic shakedown level. For Johnson & Johnson, the pharmaceutical faction of the company now accounts for over 50% of the company’s overall sales and value. It has been a source of tremendous growth - until now. It seems that even the rise of the pharmaceutical faction of Johnson & Johnson is not enough to shield it entirely from the fallout of the spread of coronavirus.
Additionally, there is the awareness that over 18% of the total revenues for Johnson & Johnson are generated within the Asia Pacific region of the globe - a region that just so happens to be one of the most heavily impacted regions thus far in the way of coronavirus. As of now, it is not certain how Johnson & Johnson shares are going to pull up over the next few months, let alone the next few weeks. However, the saving grace here is that this is quite literally the case for the entire share market, meaning that before it gets better, it is likely to get worse. So, buckle up, because this is sure to be an interesting ride (to say the least).
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