COVID Darling Needs New Tricks

Biotech giant Moderna exploded to the forefront of investors’ minds during the COVID-19 pandemic, playing a pivotal role in bringing the mRNA vaccine to life so quickly. 💉

Its role in the pandemic helped propel its market capitalization from under $10 billion in 2019 to nearly $200 billion at its peak. But as the U.S. and other countries moved past the pandemic’s peak and into a more normalized environment, it’s struggled to maintain that valuation.

Since peaking in 2021, its valuation has tumbled 80% to roughly $40 billion as investors look towards its next act. And nothing makes that more apparent than the stock’s reaction to news about the company’s updated COVID-19 vaccine for new variants of the virus. 🧫

Today, the company said its new vaccine generated a strong immune response against a highly mutated omicron variant, BA.2.86. Yet the stock barely budged on the news, instead continuing its recent decline. While this is good news from a scientific perspective, it’s unlikely to drive the significant growth investors are looking for. Thus, the market’s response was lackluster. 👎

For now, traders and investors are focused on the clear downtrend the stock remains stuck in. After breaking to multi-year lows in August, prices recently retested broken support near $117 and are now continuing lower. The stock’s 63-day moving average (in purple) also indicates its quarterly price trend remains lower.

Hopes are the company can use its mRNA technology to create vaccines and treatments for other significant diseases. But without a clear catalyst to change things, many are looking elsewhere for opportunities. As such, sellers remain in control for now. 🤷

Peloton Pops On Lululemon Partnership

Peloton investors are nervous but excited about the potential business impact of its new five-year strategic partnership with Lululemon. 🤝

The deal will bring Peloton’s content to Lululemon’s exercise app. In exchange, Lululemon will become Peloton’s primary athletic apparel partner, with a select number of its instructors becoming ambassadors for the apparel brand.

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Blue Apron’s Final Delivery

Meal-kit delivery service Blue Apron is finally ending its six-year run on the public markets, making one final delivery to investors today. 📦

In that delivery was news that the company is selling to Wonder Group, the food-delivery startup led by former Walmart executive Marc Lore. In return, shareholders will receive $13 in cash per share, representing a whopping 130% premium to Thursday’s closing price and valuing the company at $103 million. 💵

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In Amazon We Don’t Trust

The Federal Trade Commission (FTC) and 17 states are suing Amazon in a landmark monopoly case that could change the future of “big tech” companies as we know them. 🧑‍⚖️

The 172-page complaint alleges Amazon unfairly promotes its own platform and services at the expense of third-party sellers who use its e-commerce marketplace for distribution. Despite the unfair practices, the company’s dominance in e-commerce gives sellers little choice but to accept its terms. And that ultimately results in higher prices and a worse consumer experience. 📝

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Siemens Seeks Support

Roughly four months after we last discussed Siemens Energy, the company is back in the news. 📰

Before getting into today’s news, the energy giant made headlines in June after scrapping its profit forecast and warning that major setbacks at its wind turbine subsidiary (Siemens Gamesa) could last years. That sent shares tumbling 37% in about two days, also pressuring Siemens AG, which owns about 35% of the company.

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