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The Evofem Biosciences (EVFM) Stock Price Soared 69.2%. Here’s Why.

Simon Mugo trader
Updated 27 Jun 2022

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Key points:

  • Evofem Biosciences (EVFM) stock price soared by 69.2% today.
  • Investors are betting that it will benefit from the Supreme Court decision.
  • So should you buy EVFM stock? Well, that depends on a lot! Read on to find out.

The Evofem Biosciences Inc (NASDAQ: EVFM) stock price soared 69.2% today as investors reacted to the Supreme Court’s decision to strike out Roe v. Wade. Investors are betting that demand for the company’s non-hormonal gel, which is used as a contraceptive, could soar in the wake of the decisions since it could lead to new laws restricting birth control.

As protests against the Supreme Court’s decision broke out all across the country, investors saw an opportunity to buy Evofem shares in light of the decision, which cannot be easily undone since the highest court in the US passed it.

Also read: The Best Biotech Penny Stocks Under $5 To Buy Right Now.

Many religious groups and pro-life activists have backed the decision, which they say will limit the number of abortions conducted yearly in the US. However, many groups fighting for women’s reproductive health advocates have faulted the ruling.

Doctors across the United States usually recommend Evofem’s non-hormonal gel. In addition, it is FDA-approved, which many think makes it hard for states and the Federal government to ban it. However, it is too early to assess the full impact of the ruling on companies operating in the reproductive health sphere, which are the most heavily affected by the ruling.

Meanwhile, investors are betting that millennials and the younger generations of child-giving age will prefer to take contraceptives instead of getting pregnant and seeking an abortion later, which could now become illegal in many states.

However, only time will tell what happens next after this landmark ruling blamed on the three conservative Supreme Court judges appointed by President Donald Trump during his one term in office.

While the merits of the decision will be a subject of debate for many years to come, the question for you as an investor is, will you buy EVFM stock. Of course, your decision may be influenced by factors such as your moral stand regarding the supreme court’s decision, which is okay.

Others might have a different opinion, which is also their right. Still, another group might see that Evofem shares are down 93% this year and may bet that it will benefit from higher demand for contraceptives following the decision.

From a technical perspective, EVFM shares look cheap after falling over 93% this year, but its prospects are pretty uncertain since it’s too early to tell what will happen following the Supreme Court’s decision.

*This is not investment advice. Always do your due diligence before making investment decisions.

Evofem Biosciences stock price.

Evofem Bio stock price 27-06-2022
Source: Tradingview

Evofem Biosciences’ stock price soared by 69.21% to trade at $0.6697, rising from Friday’s closing price of $0.3719.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading