Moderna is Up 20% on Variant News But There is More to the Story

Moderna – MRNA.NAS was up 27% at the time of writing this thanks to concerns that a new variant originating in South Africa could cause more havoc.
Before today’s news Moderna’s shares were down significantly since they released Q3 when concerns about the sustainability of revenue from covid19 vaccines waned.  Although not without issues, wealthy nations were well underway to vaccinating their citizens and Moderna had to turn their attention to poorer nations who could not afford to pay the same prices as wealthy nations.   While these concerns are legitimate, we simply feel there are enough other reasons to own the stock.

Reasons to own Moderna Stock

  1. Covid19 could last much longer than anticipated
  2. Booster shots, once thought to be a remote possibility, are now embraced by scientists
  3. Children age 5 to 12 are now approved for vaccination
  4. Much of the world is still unvaccinated
  5. Variants could arise, and in fact are arising as per South African variant news
  6. There is a distinct possibility mRNA technology can be used to develop regular flu vaccines that are superior to existing vaccines
  7. There are other viruses that are candidates for mRNA vaccines for including HIV, Zika, CMV and more
  8. There are other diseases such as cancer that have potential to be treated with mRNA drug development
  9. Due to Covid19 cash windfall, the company has a war chest to pursuit and develop their pipeline more aggressively

Leave a Reply