Moderna Crash Wipes Out Over $20 Billion In Market Value After Concerns Stock Is Overhyped

ToplineThe stock price of Moderna, which had been rising steadily, fell more than 15% Wednesday after an analyst warned that the stock's high price was an exaggerated valuation due to hype surrounding the Covid vaccine.Moderna, an American biotech company, saw its stock price drop due to fears that vaccine hype was driving up the... [+] price. Jakub Porzycki/NurPhoto via Getty ImagesThe Key FactsAfter closing at over $450 on Tuesday, Modernas closed Wednesday at $385.33. After a harsh analysis by Bank of Americas Geoff Meacham Monday, the stock of Modernas has dropped for the second consecutive day. Modernas' price was called ridiculous and unjustifiable from a fundamental standpoint. The 11-year-old company's market cap exceeded that of over-a-century-old drug companies. Meacham set his price target at $115, more than 75% less than Monday's closing price. Even with the losses of the last two days, the stock price is up more than 65 percent over the last month and 450% over the previous year.Important QuoteMeacham stated that current levels are still unjustifiable from a fundamental standpoint, even though we remain positive on mRNA tech.Important BackgroundModerna was a major supplier to the Covid-19 vaccine effort in the U.S. Its doses accounted for over 140 million shots in the U.S. according to the CDC. Pfizer and BioNTech are the only two vaccine suppliers that have provided more vaccines. They account for less than 198 million doses. Despite a slight increase in vaccinations over the past weeks, the U.S. vaccination rate is still significantly lower than it was in spring. The Bank of America analysis also noted that health officials continue to advise against booster shots.TangentPfizer's and BioNTech's prices also fell on Wednesday, but not as much as Moderna. Pfizer's prices dropped 3.9% and BioNTechs fell nearly 14%.Continue readingWhite House: Daily Vaccinations Reach Their Highest Level in a Month. States With the Most Covid-19 Are Leading The Way (Forbes).