Why Boston Scientific (BSX) Shares Are Falling Today

Recent Developments

Boston Scientific (NYSE:BSX), a leading medical device manufacturer, experienced a 4.6% decline in its share price during the afternoon trading session following the announcement of its plan to purchase Penumbra. This acquisition, valued at around $14.5 billion, represents the company’s most significant transaction in the past twenty years.

The deal, which involves both cash and stock, is intended to strengthen Boston Scientific’s offerings in the cardiovascular sector, with a particular focus on rapidly expanding vascular and neurovascular markets. Despite these ambitions, investors responded unfavorably to the news. To cover the approximately $11 billion cash component, Boston Scientific will utilize its available funds and take on additional debt. The company also indicated that the acquisition would likely decrease its adjusted earnings per share during the first full year after completion.

Sharp market reactions to major announcements can sometimes create attractive entry points for long-term investors. Could this be a good moment to consider Boston Scientific shares?

Market Sentiment and Stock Performance

Historically, Boston Scientific’s stock has shown limited volatility, with only three instances of price swings exceeding 5% over the past year. In this context, the recent drop signals that investors view the acquisition as a significant event, though it may not fundamentally alter their outlook on the company.

One of the most notable movements in the past year occurred nine months ago, when shares jumped 8.5% after Boston Scientific reported first-quarter 2025 results that surpassed analyst expectations for both sales and earnings per share. The company’s organic sales growth outperformed its own projections, driven by a robust 25.6% increase in its Cardiovascular division, highlighting rising demand in its largest business area. Furthermore, revenue forecasts for the upcoming quarter were higher than what Wall Street anticipated, suggesting continued momentum. Overall, the quarter was solid, with several key metrics exceeding expectations.

Since the start of the year, Boston Scientific’s stock has declined by 4.9%. Currently trading at $90.08 per share, the price is 16.7% below its 52-week peak of $108.14 reached in September 2025. For perspective, an investor who put $1,000 into Boston Scientific five years ago would now see that investment grow to $2,480.

Looking Ahead: Industry Trends

In 1999, the book Gorilla Game accurately predicted that Microsoft and Apple would become dominant forces in technology by identifying early platform winners. Today, a similar shift is happening as enterprise software companies integrate generative AI, positioning themselves as the next industry leaders.