Pfizer

What is Pfizer stock?

Pfizer stock is stock made available for public trading by Pfizer, one of the largest pharmaceutical companies in the world by market capitalisation. The American organisation researches, develops and sells medicines and vaccines to improve health and prevent, treat and cure various diseases.

Pfizer is now best known for its mRNA-based COVID-19 vaccine, which was found to be highly effective in 2020 and among the first to be officially approved in several countries. The company was founded back in 1849, however, and has released several other pioneering products since, including Viagra, Xanax, Zoloft, Lipitor and others.

Pfizer stock is listed on the New York Stock Exchange with the ticker symbol PFE and is one of its highest-profile securities. It's also a component of top stock-market indices such as the S&P 100 and S&P 500. H2: How has Pfizer stock performed over time?

Pfizer went public in 1942 almost 100 years after its founding and has posted some impressive returns since.

Following a mostly upward trajectory into the 1990s, notable events in its stock history include an aggressive rally in 1999 driven by positive numbers for its Viagra and Lipitor brands. It suffered after the turn of the millennium, culminating in low points around the 2008 global financial crisis, but enjoyed a substantial rebound afterwards.

Like many international companies, Pfizer stock dived in early 2020 as the COVID-19 pandemic took hold globally. It rebounded strongly with the announcement, testing and production of its vaccine, however, which sparked investor confidence globally and continued to drive record company earnings in 2022.

What affects the Pfizer stock price?

Pfizer stock price can be influenced by a range of factors that impact supply and demand in the market at any given time. Key factors which it can pay to monitor as a trader or investor include:

• Earnings: Pfizer's revenue can fluctuate with consumer demand based on the prominent health challenges of the time. 2022 was a record year for the company, driven largely by its COVID-19 vaccine and treatments, but 2023 is unlikely to hit the same heights as the world continues to emerge from the pandemic.
• Products: New drugs can drive up the Pfizer share price depending on their effectiveness, competition and potential customer base. Viagra hit the market in 1998, for example, and caused an uptick, while its much-awaited COVID-19 vaccine drove similar surges.
• Legislation: Pfizer operates in one of the most tightly regulated industries and sells its products around the world, making it vulnerable to legal and tax updates in different jurisdictions.
• PR: Negative press and potential lawsuits also have the potential to impact the stock price of major pharmaceutical companies such as Pfizer, for example, due to adverse reactions, poor-quality research or false advertising.
• Competitors: Pharma is a competitive industry, with several titans competing to release more effective or world-first drugs including AstraZeneca, Johnson & Johnson, Merck and others.

How to trade or invest in Pfizer stock

Trading Pfizer stock directly

Trading directly means investing in Pfizer stock if you expect it to rise over time. You'll take ownership of the shares with the option to hold or sell, which is typically done over a longer timeframe than trading derivatives.

You can get started with Tradu by simply creating an account, adding funds and choosing how many shares to buy. Keep in mind, however, that you can't use leverage to increase your market position when trading directly.

Trading Pfizer stock using derivatives

Derivatives such as contracts for difference (CFDs) involve speculating on Pfizer stock price movements without taking ownership. They're typically shorter-term approaches than trading directly.

CFDs is leveraged product, enabling you to amplify your market exposure and profits or losses from smaller deposits. They also allow you to trade and potentially profit from bear and bull markets, not bull alone. Read our guides to get to grips with how these products work.

• CFD trading guide

Pros and cons of trading Pfizer stock

Pros of trading Pfizer stock

• Pharma leader: PFE stock gives you exposure to one of the most famous pharmaceutical assets around, boasting a strong track record of medical and commercial breakthroughs.
• High liquidity: Pfizer's global fame means there are typically plenty of traders in the market, making your trades more efficient.
• News coverage: The company earns frequent and widespread news coverage and analysis, helping inform your strategy.
• Trade options: With Tradu you can buy Pfizer stock directly to hold or sell, or use leveraged CFDs to speculate on price movements in either direction.

Cons of trading Pfizer stock

• Volatility: The PFE stock price can be vulnerable to a range of factors that are difficult to predict or control, making your in-depth analysis and risk-management strategies essential.
• Leverage risk with derivatives: Leverage is a powerful tool that can quickly amplify losses if the market goes against you. If you do use CFDs, it's important to use ratios and trade sizes with which you're fully comfortable.

How to start trading or investing in Pfizer stock with Tradu

1. Open your Tradu trading account online and add capital to start trading.
2. Build your trading plan. Blend your trading timeframe, available capital, risk tolerance and preferred markets into a personalised strategy.
3. Study Pfizer stock prices. Mix comprehensive fundamental and technical analysis to track and forecast the market.
4. Open and manage your first position. Invest in PFE stock directly or use CFDs to speculate on its price movements.
5. Diversify your trading experience. Expand your knowledge and portfolio with our learning resources and range of available asset classes and securities.