The coronavirus pandemic continues to dominate the headlines for a long period of time. It is not surprising as countries are struggling to deal with the coronavirus that originated in China more than a year ago. Hopefully, companies are working hard to produce as many vaccines as possible to improve the situation. Interestingly, Moderna has been one of the top growth stories of the past year. Importantly, in just 12 months, its shares jumped more than 860%, blowing past the S&P 500 as well as its gains of 16% during that time frame.
If a person bought shares of the company during the coronavirus market crash in 2020, this person would be sitting on an incredible profit today. It is no secret that the company from Massachusetts has made a name for itself thanks to the success of its COVID-19 vaccine. This is not the end of the story, as Moderna’s stock has the potential to reach even greeted heights.
Moderna and a phenomenal result
Interestingly, during the coronavirus market crash in 2020, Moderna’s stock fell under $30 a share to less than $20. At that time, Moderna was still in the early stages of working on a vaccine for COVID-19 and betting that it would be successful was still a big risk to take. Importantly, investors who invested money in Moderna were taking on a lot of risks.
As it turned out, it was a good idea to invest in Moderna. For example, if a person invested $10,000 when a price fell to $20 a share, that $10,000 investment would now be worth approximately $92,000. That’s a huge 820% return for holding on to a stock for less than a year.
Moreover, it is a great example of a high-risk, high-reward investment. People should keep in mind that if the company failed to obtain emergency use authorization (EUA) for its mRNA-1273 vaccine candidate, the stock would have flopped.
As a reminder, the U.S. Food and Drug Administration (FDA) approved the company’s candidate in December 2020.
The major question is how much higher the stock can go and whether it is worth investing in the company at the moment. Hopefully, Moderna does have other drugs in the pipeline that could generate significant sales. Importantly, the COVID-19 market could be worth as much as $100 billion. Moreover, Moderna is ramping up production. According to the company, by the end of March, it could hit 100 million doses. Last but not least, it makes sense to invest in Moderna.
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