This week, Novavax was making news as its stock price fell. After President Biden said that the epidemic was over, this happened. Those comments were made by the president during an interview.
MarketBeat.com - MarketBeat I wouldn't be concerned about the backtracking going on among public health and public policy experts if I were you. The truth is that many people don't pay much attention to the Pandemic because they don't make a lot of decisions. Whether it should be a topic for another day and people with more knowledge than this writer.
I'm taking a look at the opportunity that the stock has to offer.
Novavax may have surpassed what investors can expect to see on the revenue side. Stan Erck, the company's president and CEO, stated on the company's most recent earnings call that there would be no new revenues from the U.S. and CovaX in the years to come. The company had originally planned to sell over 100 million and over 300 million doses.
The company still expects total revenue to be between $2 billion and $2.3 billion. The company has generated almost a billion dollars in revenue so far this year.
The company missed earnings estimates badly in the second quarter even though it produced its first profitable quarter in Q1 of 2022. It's telling that forward guidance for full-year earnings wasn't offered.
If you were a speculative investor with the risk tolerance and discipline to execute a trading strategy, you might have done well on the stock. Novavax closed at an all-time high of $279.83 less than a year later. It would be a huge gain.
The stock has lost most of its gains. The bigger question is if the stock has the ability to move higher.
It is unlikely to see such high heights again. It appears that the stock may have more room to fall.
Novavax is lumped in with the other meme stocks. March 20, 2020 is a date that is associated with the start of the Pandemic. The stock is close to 4% higher than it was five years ago.
The vaccine race took place in the interim. The vaccine candidate offered by Novavax was different than what other companies were offering. It was different in this case. The vaccine used by the company is similar to the yearly flu shot.
If you weren't willing to get an mRNA vaccine, you might be able to get the Novavax vaccine. The vaccine had to wait for regulatory approval because it wasn't part of the operation.
About 80% of the United States is vaccine free. Will people need to get Covid-19 booster shots more often? I don't want to weigh in on that, speak to your doctor. It makes sense that not all of the 80% that are currently vaccine free will continue to do so.
Novavax is still waiting for approval for its vaccine to be used as a booster shot. Novavax didn't get FDA approval in the US until July 2022.
I think that the stock is a risk-on stock at a time when investors are turning to riskier assets. Speculative investors may be able to try again at a discounted price if the stock price moves lower.
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