It wasn’t long ago that Moderna stock (NASDAQ:MRNA) was one of the market’s hottest companies. In the contest to create COVID-19 vaccines, the business emerged as one of the top winners. From its first public offering in December 2018 to July 2021, Moderna’s shares increased by 2,500%.

But Moderna’s tale has changed dramatically since then. The initial success of the COVID-19 vaccination gradually faded. What comes next for the battered vaccine stock? 

Here’s what you should understand about Moderna stock.

Some of the major information to know about moderna stock (NASDAQ:MRNA) fall within the three explained below:

1. 1. Significant ambiguity still exists.

So far this year, Moderna (NASDAQ:MRNA) stock price has been quite erratic. This is not expected to alter very soon because one simple reason: demand for COVID-19 vaccinations remains highly unpredictable. Consequently, there is considerable uncertainty concerning Moderna’s financial success in the next few years.

Vaccination rates in the United States and other nations seem to have plateaued. Simultaneously, the number of COVID-19 cases has decreased. These two elements do not seem to bode well for Moderna and other coronavirus vaccine manufacturers.

On the other hand, other analysts believe another COVID-19 wave will arrive in the autumn and winter. Moderna now includes a booster that explicitly targets the coronavirus omicron strain. It is also working on a COVID-19/flu vaccine candidate. This might portend to brighter times for Moderna stock (NASDAQ:MRNA), perhaps as early as next year.

1. 1. Don’t depend on standard valuation measures.

Before purchasing a stock, it is sensible to examine its value. Some people prefer the price-to-earnings ratio. Others favor enterprise value or free cash flow valuation measures. However, experienced investors know not to depend on any of these popular valuation criteria when it comes to Moderna.

To be sure, based on those parameters, Moderna may seem to be a bargain. For example, the stock is trading at less than 3.7 times trailing-12-month profits. The enterprise-value-to-revenue multiple of the vaccine manufacturer is merely 1.8. Both are very low levels.

Both are potentially deceptive because of the significant question marks hovering over Moderna’s head. Revenue and profitability for the corporation might decline drastically in 2023. Analysts are forecasting a steep drop. Moderna’s average revenue prediction for 2023 is slightly less than half of what the business is expected to make this year.

1. 1. COVID-19 has far-reaching implications for the future.

The most astute investors think in terms of the long term. They will also see that Moderna’s potential extends well beyond COVID-19. However, the market seems to be mostly disregarding this key issue.

Outside of its COVID-19 emphasis, Moderna’s pipeline includes three late-stage initiatives. The business is testing investigational vaccinations for cytomegalovirus (CMV), respiratory syncytial virus (RSV), and seasonal flu. Moderna anticipates that its RSV and flu vaccine research findings will be ready next year. Its CMV data may be available by 2025.

Moderna is also evaluating several programs in phases 1 and 2. mRNA-1457, a personal cancer vaccine candidate, stands out.

The use of messenger RNA (mRNA) technology to target numerous illnesses with vaccinations and medicinal medications provides enormous versatility. Moderna remains one of the world’s major mRNA leaders. Investors in the know will realize that, despite the short-term uncertainties, the company’s long-term prospects seem to be promising.