Why Moderna Stock Is Down By 5% Today

Moderna Stock Falls As Traders Take Profits At All-Time High Levels

Moderna stock made an attempt to get to the test of the $500 level but lost momentum and pulled back closer to $450.

The stock got an additional boost after recent reports suggested that Moderna’s vaccine was more effective against the Delta variant of coronavirus compared to the vaccine developed by BioNTech and Pfizer.

According to the reports, the efficacy of Moderna’s vaccine declined to 76% in July while the efficacy of Pfizer/BioNTech dropped to just 42%.

However, Moderna stock declined despite these new reports as traders decided to take profits near the psychologically important $500 level.

What’s Next For Moderna Stock?

Moderna shares have lost some momentum due to profit-taking, but the stock’s  fundamental story remains strong.

It is increasingly likely that countries will have to use booster shots in order to protect their citizens against COVID-19 which means that Moderna will get more revenue in the upcoming years.

Analysts expect that Moderna will report earnings of $18.2 per share in 2022 so the stock is trading at roughly 25 forward P/E, but analyst estimates may move higher in the upcoming weeks as demand for vaccines stays very strong.

The main risk for the stock right now is a potential pullback caused by profit-taking, but it should be noted that stocks easily get to “overbought” levels and continue to move higher when demand is strong. The market will likely focus on the topic of booster vaccines in the upcoming weeks, and demand for Moderna shares may increase even more.

In the longer-term, the key question is whether demand for Moderna’s coronavirus vaccine will be sufficient enough in the next years to justify current stock price levels. However, the market will likely focus on near-term developments as the world continues its battle against coronavirus, so thoughts about long-term earnings potential will likely have minimal impact on Moderna’s stock price dynamics this year.

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