It’s amazing to consider that just a year ago, Moderna (NASDAQ:MRNA) was a lesser-known entity among investors. Of course, MRNA stock is certainly not flying under the trading community’s radar today.
In fact, upwards of 20 million shares of MRNA trade hands on a typical day.
But is it necessarily a bad thing if Moderna didn’t end the year on a high note?
Not at all — fluctuations are normal and dips are gifts for investors seeking to add to their positions.
And as long as the public — both in the United States and abroad — demands Covid-19 vaccines as soon as possible, there’s room for MRNA stock to recover and achieve a powerful breakout moment in the new year.
MRNA Stock at a Glance
Before March 2020, the main debate surrounding this name was whether or not the bulls could keep MRNA stock above $20. They tried in the past, but somehow couldn’t muster up enough buying pressure to maintain that key level.
But then, the onset of the novel coronavirus changed the landscape of the economy and the stock market. Airlines and cruises suffered while certain biotech stocks rocketed to new heights.
Moderna became a celebrity company practically overnight and the stock broke through that old $20 ceiling, never looking back. On Dec. 1, the share price managed to attain a 52-week high of $178.50.
In hindsight, we can say that the bull run in MRNA was a case of too far, too fast. A correction followed, with the share price landing at $104.47 on Dec. 31. So, is this a sign of more technical damage to come, or just a healthy dip that’s meant to be bought?
Moderna Was Early
It’s interesting and perhaps somewhat irrational that MRNA stock corrected as much as it did. After all, Moderna is still among the first drugmakers to obtain regulatory approval for a Covid-19 vaccine in the United States.
Specifically, on Dec. 18, the U.S. Food and Drug Administration (FDA) officially issued an Emergency Use Authorization (EUA) for the company’s vaccine.
And with that, National Institute of Allergy and Infectious Diseases (NIAID) Director Dr. Anthony Fauci announced the imminent distribution the MRNA vaccine to select patients in the country.
But what many people don’t know is that Moderna was actually the first company to begin clinical trials for a Covid-19 vaccine. In fact, the company started the process a mere “63 days after the virus was sequenced from China.”
Preparing for Global Progress
Essentially, Moderna and MRNA stock were early in the race, so to speak. So, with most of the population still waiting to be vaccinated, there’s no reason to believe that the company’s revenue prospects have diminished in any way. It had a competitive start and can still to do well.
Besides, Moderna’s progress isn’t limited to the United States. On Dec. 29, the company confirmed that it’s in discussions with South Korea to potentially provide 40 million or more doses of its vaccine. The proposed distribution to the country would kick off in the second quarter of 2021. Moreover, on Dec. 30, MRNA finalized an agreement with a company overseas to support its formulation and distribution of the vaccine internationally.
Subject to regulatory approval of the vaccine abroad, the supply rollout could begin in early 2021.
The battle against the Covid-19 pandemic isn’t limited to the borders of the United States. Therefore, Moderna is aggressively pursuing avenues for its Covid-19 vaccine in multiple places across the globe.
This will put holders of MRNA stock in a good position as we move into 2021. And with the recent dip, there’s a chance to own a stake in the ambitious drugmaker at a fair price.
— Louis Navellier and the InvestorPlace Research TeamAvoid These Kinds of 5G Stocks Like the Plague [sponsor]
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Source: Investor Place