Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Moderna Erases $50 Billion in Value as Stock Drops 50% This Year

Published 03/08/2022, 01:50 AM
© Reuters
NDX
-
US500
-
NVAX
-
MRNA
-
BNTX
-

(Bloomberg) -- Moderna (NASDAQ:MRNA) Inc.’s shares have dropped 50% this year as investors pulled back from Covid-19 healthcare stocks and staged a broader rotation out of growth names.

The biotech firm fell as much as 7.3% on Monday amid a broader market selloff and has erased more than $50 billion in value this year. Investors were concerned over the future revenue of Covid-19 vaccines and increasing competition in the space. The stock has lost more than 70% from its record closing high of $484.47 set in August 2021. 

“Increasing competition and lack of visibility” about future sales has led to a loss of investor interest across the Covid-19 complex, Oppenheimer analyst Hartaj Singh, who has a market perform rating on Moderna, said in an interview. 

Moderna soared during the pandemic as it raced to develop a Covid-19 vaccine. Its 143% gain last year made it the third-best stock in the S&P 500. It’s been on a breakneck ascent upward since debuting in 2018, skyrocketing by 434% in 2020. 

By 2022, investors were looking ahead to future Covid-19 vaccine demand amid growing debate about the timing and need for boosters, as interest in pandemic-focused healthcare names waned. Impending Federal Reserve interest-rate hikes and the ongoing Russia-Ukraine war have also hurt sentiment across global stock markets. The S&P 500 Index has dropped 11% this year, while the Nasdaq 100 Index is down 17%.

Among other vaccine makers, BioNTech SE (NASDAQ:BNTX) and Novavax (NASDAQ:NVAX) Inc. have each fallen by at least 50% this year, while the S&P 500 Health Care Index has declined 7.9%. 

“I think there’s a Covid loss of interest,” SVB Leerink analyst Daina Graybosch, who has a market perform rating on BioNTech and does not cover Moderna, said in an interview. “I see it across the board.”

©2022 Bloomberg L.P.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.