Wall Street Has Cooled on Moderna After Its Stock Jumped Over 5X. But Does the mRNA Leader Have More Room to Run?
The vaccine maker is making an increasingly robust case that it isn't just a pandemic stock.
Overview
Moderna (NASDAQ: MRNA) has been one of the better-performing large-cap biotechs this year. The company's shares are up 404% to date and have soared 515% over the trailing-12-month period (as of writing). The company's shares are changing hands for about $148 apiece. Notice that's down meaningfully from the $176.66 highs the stock reached earlier this year after a major clinical milestone. Does this pullback signal that Moderna has little to no upside left, or can the stock still deliver outstanding returns?
Moderna's performance looks very different once we zoom out. Over the past five years, the company has lost a little more than 60% of its value. That's because Moderna failed to replicate the success it achieved during the early pandemic years. The company developed one of the leading coronavirus vaccines, but as the pandemic waned and demand for vaccines declined, Moderna's financial results worsened. The market also wasn't convinced that Moderna's mRNA platform could lead to massive commercial success beyond the coronavirus market and infectious diseases more broadly.
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Originally published at www.fool.com.