Moderna Share Price: A Vaccine Maker's Meteoric Rise and Fall

Moderna, a vaccine maker, has had an extraordinary journey in recent years. From being a relatively unknown company to becoming a household name worldwide, Moderna's stock price has followed a similar trajectory. In this article, we'll delve into the company's remarkable rise during the pandemic and its subsequent decline.

In 2020, Moderna saw revenues of $803 million, representing an enormous 2191% jump from the previous year. This surge in revenue led to the company generating $18.4 billion in 2021. The Moderna vaccine was sold for around $20-25 per dose, while other vaccines like AstraZeneca's shot were offered at cost-price.

The exceptional circumstances surrounding the pandemic propelled Moderna from an obscure company to a global phenomenon. While it's common for vaccine development to take a decade from discovery to rollout, Moderna's Spikevax was created and rolled out within a year. Like other vaccines, Spikevax received emergency approval worldwide in 2020 and is considered one of the most effective vaccines against COVID-19.

Moderna only has one commercial product, its lifesaving COVID-19 vaccine, Spikevax. As a result, I'm not adding Moderna to my portfolio anytime soon and contend that the stock is still overvalued by around 25%. Despite soaring profits during the pandemic, long-term demand for its sole commercial product will likely fall drastically.

Prior to the pandemic, Moderna was trading for less than $15 per share. Its mRNA vaccine was famously touted as the Rolls-Royce of vaccines, although it was also linked with rare cases of myocarditis that may have contributed to its lower popularity compared to Pfizer's vaccine. Governments worldwide, including those in the US and EU, favored Moderna's mRNA vaccine.

Moderna shares gained massively during the pandemic but have since fallen from their peak amid uncertain demand for its lifesaving mRNA vaccine. The company's stock is now trading at $147, less than a third of its pandemic peak. Despite this decline, Moderna remains an important player in the fight against COVID-19.

In conclusion, Moderna's share price has undergone a remarkable transformation over the past few years. While the company's rapid growth during the pandemic was impressive, its subsequent decline is a testament to the challenges it faces as demand for its vaccine is likely to fall in the long term. As an investor, it's essential to carefully consider these factors before making any decisions about Moderna's stock.

Moderna share price