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. 🤷