Though its celebrated vaccine has yet to be widely distributed, Moderna has provided a stunning shot in the arm for investors.
With a range in 2020 from about $19 to $178.50, Moderna stock has outperformed even Tesla, and that stock is up almost 700%.
The company expects an emergency use authorization for its vaccine from the Food and Drug Administration as soon as next week and would likely see billions of dollars in revenue for its two-dose treatment.
Moderna stock was trading at $156.12 per share approaching midday ET on Thursday.
A Fox Business story provides a remarkable set of statistics that will sound a little painful unless you owned Moderna shares in January.
With a $1,000 investment at $19.57 per share on Jan. 2, which translates to just more than 50 shares, an investor would have seen a profit of better than $7,500. Moderna is up approximately 760% in 2020, a nice number considering the S&P 500 has gained only 15%.
The World Health Organization officially declared COVID-19 a pandemic on March 11, and Moderna has continued to rapidly increase its visibility.
So, have investors missed the boat? Is Moderna is still a good buy?
There are so many variables concerning Moderna’s immediate future. With the company’s explosive growth and many more products in the pipeline, there remains a high level of risk and reward.
From the Fox story: The stock “resembles more of a speculative buy than it does a sound and safe investment. While there is significant potential ahead for the company and the stock could keep generating excellent returns, the danger for investors is that the stock may soon be approaching a peak and any speed bumps ahead for its vaccine could trigger a sell-off.”