Novavax stock (NASDAQ:NVAX) has been making headlines this week due to a 16% drop in price. This followed President Biden’s declaration that the epidemic was finished. The president made the comments during an interview with 60 Minutes.
Novavax Stock Fundamentals are Deficient
The economic fact is that Novavax may have reached the upper limit of what investors may anticipate regarding revenue. Indeed, in the firm’s most recent earnings conference, president and CEO Stan Erck noted that the company expected “no additional revenues in 2022 from the United States and (its) COVAX (plant).” Initially, the corporation intended to sell 110 million and 350 million pills to the two companies, respectively.
Nonetheless, the business anticipates overall revenue of $2 billion on the low end and up to $2.3 billion on the high end. The year’s first half is in the books, and the company’s revenue is slightly around $900 million.
It Was a Fantastic Ride
I’ll acknowledge that if you were a speculative investor with a high-risk tolerance and the discipline to execute a trading plan, Novavax stock (NASDAQ:NVAX) would have performed well for you. Novavax closed at an all-time high of $279.83 less than one year later, in March 2020. That is a gain of almost 2,700%.
However, the stock has lost most of its gains since that date. The bigger issue today is whether Novavax stock (NASDAQ:NVAX) has the potential to rise.
It may, but it’s unlikely to reach such heights again. And, without further vaccine approvals, NVAX stock (NASDAQ:NVAX) seems to have more space to fall.
A Meme Stock with a Purpose
It’s difficult to avoid lumping Novavax stock (NASDAQ:NVAX) in with the other meme stocks. As of this writing, Novavax stock (NASDAQ:NVAX) has been up more than 162% since March 20, 2020 – a date often identified with the onset of the epidemic. However, from a broader perspective, Novavax stock (NASDAQ:NVAX) is up just over 4% from this position five years ago.
The big vaccination race occurred in the meantime. And Novavax presented a vaccine candidate distinct from those offered by Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA). Different in this situation means more familiar. The company’s vaccine employs biotechnology similar to that used in the yearly influenza injection.
If you were hesitant to acquire an mRNA vaccination, the Novavax vaccine might be an option. However, since the company’s vaccination was not part of Operation Warp Speed, it had to wait for regulatory clearance.
For me, the basic line is that Novavax stock (NASDAQ:NVAX) is a risk-on stock at a time when investors who are still in stocks are shifting to risk-off assets. With the stock price expected to fall, speculative investors may be able to attempt again at a reduced cost.
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