Why Moderna Stock Is Down By 13% Today

Moderna Stock Drops As Skepticism About Future Vaccine Sales Grows

Shares of Moderna gained downside momentum after the FDA postponed a meeting on the authorization of Pfizer/BioNTech vaccine for children aged from six months to 5 years.

Moderna stock is already down by more than 70% from the highs that were reached back in August 2021, but there is no rush to buy the stock as traders question the future of vaccine sales.

Currently, analysts expect that Moderna will report earnings of $28.32 per share in 2022, so the stock is trading at 5 forward P/E. However, the market is worried that the company’s earnings will dive in 2023 as demand for vaccines may decrease.

What’s Next For Moderna Stock?

The dynamics of Moderna stock will depend on the market’s evaluation of the future trajectory of the coronavirus pandemic. The recent protests around the world highlighted people’s pandemic fatigue, and political pressure to ease coronavirus-related restrictions is clearly growing.

In addition, the rapid spread of Omicron did not lead to a collapse of the healthcare system, boosting hopes that the pandemic is finally coming to an end. This is bullish for the economy but bearish for the stocks of vaccine makers.

The original enthusiasm towards Moderna’s stock has almost evaporated, and the market is worried that the company is a “one-trick pony”. It is hard to predict the vaccine sales in 2023 and beyond as they will depend on the course of the pandemic and on whether any variants emerge, so traders will likely follow general market sentiment.

At this point, the market completely ignores the coronavirus pandemic and is focused on inflation and Fed’s interest rate decisions. In this environment, Moderna stock may have more room to fall in the upcoming trading sessions, together with other vaccine stocks like BioNTech and Novavax.

For a look at all of today’s economic events, check out our economic calendar.