JNJ impending short

18. Juni

The chart illustrates the possibility of a correction down to a major trend line. This would mean millions of dollars lost in market cap within the next several months or years. If the movement is drastic we may see the company attempt perform countermeasures to provide shareholders a soft landing. One of these countermeasures could be (which I think will be more than likely) layoffs, or termination of complete organizations within the company. As technology advances and consumers of JNJ products increase in cost, the company may pivot to less expensive methods of operations. Attrition is a key variable that I foresee in the near future which could help the company regain some stability in the market. Many people will lose their jobs, but shareholder interest is at the forefront of any good company. Skills are easy to obtain nowadays but public moral is probably at an all time low or leveled with 1950s Vietnam era. If people are unmotivated to learn, they will contribute to the overall downturn of the economy.

5. Okt.

Anmerkung

In June, I shared an analysis on JNJ highlighting the potential challenges the company might face in the coming months, including possible layoffs and organizational shifts. Now, as we enter October, recent developments seem to align closely with those concerns.

On October 2nd, it was announced that J&J would be reducing its workforce by 231 employees in New Brunswick by the end of December.

This news comes alongside broader layoffs in the pharmaceutical sector, with BAYRY and PFE also announcing workforce reductions. The increasing pressures on major sectors to adapt to shifting market dynamics, product/patent expirations, and rising operational costs.

For JNJ, the challenges surrounding the 340B drug discount program and the recent patent expiration of their flagship drug, Stelara, likely contributed to these changes.

I anticipated, the company would be taking steps to adjust, including layoffs, while preparing for the future with new therapies like Tremfya, especially as they prepare for Stelara biosimilars in 2025.

The alignment of my earlier prediction with recent events underscores the value in understanding a company’s context when making informed trading decisions rather than simply relying on technical analysis which I've been an advocate for since early 2014.

Fundamental analysis is just as important.

I’ll continue to keep an eye on J&J and the larger sectoral landscapes as these shifts unfold. Stay tuned for further updates and insights.


LINK TO NEWS ARTICLE: biospace.com/job-trends/bayer-j-j-and-pfizer-to-lay-off-nearly-500-combined-employees