(Bloomberg) — The COVID-19 pandemic may have officially ended months ago, allowing the public to return to their normal lives, but not every sector of the economy has bounced back. Moderna Inc., the company that gained fame as one of the first to develop COVID-19 vaccines, has been struggling to find its next big breakthrough. As a result, investors have been abandoning ship, leading to an eight-day losing streak in Moderna’s stock.
In fact, this week alone, Moderna has lost $6.8 billion in market value after Pfizer Inc., a rival vaccine maker, lowered its profit outlook. Pfizer’s move highlighted the dwindling demand for COVID-19 vaccines and treatments. This decline in confidence has brought Moderna’s stock to its lowest point since November 2020 when it was still seeking authorization for its COVID-19 vaccine in the US.
Analyst Hartaj Singh from Oppenheimer believes that concerns about declining revenue from COVID-19 vaccines are at an all-time high. He suggests that Moderna’s stock could regain momentum with strong third-quarter earnings and positive guidance for potential revenues in 2024.
While Moderna attempts to pivot beyond its successful Spikevax vaccine, Wall Street remains divided on the company’s future. Half of the 24 analysts surveyed by Bloomberg rate Moderna as a buy, while the other half, including Singh, hold or sell the stock.
This vaccine manufacturer is now focused on proving the effectiveness of its messenger-RNA technology against other diseases, such as cancer. Additionally, Moderna is developing a combination flu and COVID-19 shot, as well as an RSV vaccine.
Read QuickTake: mRNA Is Magic in Covid Vaccines. What Else Can It Do?
Since its peak in August 2021, Moderna’s stock has plummeted by approximately 83%, resulting in a drastic decrease in its market capitalization. Moreover, investors have shifted their focus to stocks related to the emerging class of weight-loss drugs known as GLP-1s, causing Moderna to emerge as one of the worst-performing names in the S&P 500 index this year.
Following Pfizer’s announcement, Moderna’s management has reiterated its guidance for vaccine sales for the full year. The company still anticipates generating between $6 billion to $8 billion from COVID-19 shots. However, it remains cautious about predicting vaccination rates in the US.
Myles Minter, an analyst from William Blair, expects Moderna’s US COVID-19 sales to be at the lower end of the guidance range based on Pfizer’s updated guidance and demand commentary.
While Pfizer initially experienced a boost in its stock after the announcement, gaining 3.6% on Monday, its shares have also suffered, losing approximately half their value from the pandemic peak. Both Moderna and Pfizer are facing uncertainty as the market adjusts to the post-pandemic landscape.
Read More: Pfizer’s $9 Billion COVID Outlook Cut Sparks Investor Relief
Moderna is scheduled to release its third-quarter earnings results in November.
(Updates with closing prices throughout.)
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