Moderna Stock Tumbles After Best Day In 7 Months, But Retail Confidence Holds Firm
By Stocktwits Inc | First Published Jan 9, 2025, 12:33 AM ISTAdding to Wednesday's bearishness, UBS analysts reportedly lowered Moderna's price target to $96 from $108.
Shares of Moderna Inc. fell over 8% on Wednesday afternoon, paring some of the gains from Tuesday, the stock’s best trading session in seven months.
The stock surged 12% on Tuesday, driven by heightened interest in the company's H5N1 bird flu vaccine candidate after the first bird flu death in the U.S. was reported earlier this week.
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Despite the pullback, retail sentiment on Stocktwits remained 'extremely bullish,' with sustained message volume indicating high interest.
Retail investors highlighted Moderna's solid financials, including $10 billion in cash and $1.8 billion in revenue in the last quarter, alongside its relatively low market cap and a 20% short float.
Some users hoped for a bounce at the 50-day moving average.
Adding to Wednesday's bearishness, UBS analysts reportedly lowered Moderna's price target to $96 from $108, though they maintained a 'Buy' rating.
According to Barron's, UBS cited a challenging backdrop for pharmaceutical stocks amid geopolitical and economic uncertainty, including Donald Trump's return to the White House and unclear interest rate trends.
Analyst Elvira Huynh noted that Moderna's pipeline programs, particularly its Phase 3 Cytomegalovirus (CMV) vaccine, are underappreciated. The CMV vaccine, targeting a disease associated with birth defects, represents a significant unmet need with an enormous market opportunity.
Moderna rose to prominence during the COVID-19 pandemic with its mRNA-based vaccine, propelling its stock to an all-time high of nearly $400 in 2021.
However, the stock has struggled as pandemic-related demand waned and competition in other vaccine categories intensified.
It lost 63% in 2024, making it one of the S&P 500's worst performers. While Moderna has gained around 3% in 2025, it remains significantly off its pandemic-era highs.
Retail investors continue to see value in Moderna's evolving pipeline, while analysts suggest the stock could recover if upcoming trial results exceed expectations.
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