We Asked Retail If Novavax Stock Is A Buy At Current Levels: Nearly 70% Think It's Undervalued

Novavax Inc. had an impressive 2024, with its stock gaining nearly 68%. The momentum has continued into 2025, with shares up over 11% year-to-date. 

Despite recent challenges, retail investors remain optimistic, viewing the stock as undervalued at current levels.

The stock has seen heightened attention on Stocktwits, boasting over 102,000 followers — making it the third-most-followed biotech ticker. 

Message volume on the platform has surged by over 1,200% since the beginning of the year, reflecting growing retail interest.

Novavax faced setbacks late last year when the FDA placed its COVID-19 and influenza combination vaccine (CIC) on clinical hold due to a safety concern during trials. 

That hold was lifted within a month, allowing the company to resume development. However, reduced annual revenue guidance during positive third-quarter earnings tempered investor enthusiasm.

On the positive side, Novavax achieved a key milestone in December under its partnership with Sanofi, earning $50 million for progress in a phase 2/3 trial of a COVID-19 vaccine for children. 

The collaboration holds potential for up to $650 million in additional milestone payments, along with tiered royalties.

In a recent Stocktwits poll, 67% of retail investors deemed the stock undervalued, while 24% were awaiting more clarity or avoiding it. 

NVAX poll and results | source: Stocktwits

Retail chatter remains mostly optimistic on Stocktwits, with some investors eyeing a return beyond the $100 mark — a level last seen in February 2022 as the COVID-19 pandemic was starting to ease. The stock now trades 91% below those highs.

Bullish watchers pinned hopes on Novavax’s $909.5 million cash position, relatively low debt of $262 million, and ongoing COVID-19 vaccine sales across Europe as reasons for confidence. 

CEO John Jacobs has also emphasized plans to diversify beyond COVID-19 and influenza with a pipeline that includes standalone influenza candidates and proprietary technology used in some malaria vaccines.

Investors are also awaiting updates on the company’s bird flu vaccine candidates, which have reportedly been through pre-clinical trials, as rising U.S. cases cause concerns.

Despite challenges, Novavax’s cash reserves and promising partnerships position it as a compelling prospect for long-term investors.

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