MRNA Stock Alert: Why Is Moderna Up 7% Today?

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Who knew getting sick could make you richer? Today, investors in Moderna (NASDAQ:MRNA) certainly feel that way, as MRNA stock shoots roughly 7% higher.

This move comes on news that experts believe we could be due for a late summer Covid-19 wave. Experts at the U.S. Centers for Disease Control and Prevention (CDC) suggest that various indicators all point to the high likelihood of a surge in infections and hospitalizations in the coming weeks. These indicators are mostly derived from wastewater data, which has been used in the past to measure aggregate levels of Covid-19 in a given community or area.

With this in mind, let’s dive into what this means for investors in MRNA stock right now.

It’s hard to call an outlook for a Covid-19 boom an optimistic catalyst, but for investors in Moderna, it certainly is. The mRNA-focused biotech company, which is working on developing other treatments but still heavily reliant on Covid-19 vaccines for its sales, is in dire need of a catalyst. While unfortunate for the general population, a Covid boom could be what the doctor ordered for this company — or at least for its upcoming quarterly results.

For investors in Moderna, the question really is how quickly the company can commercialize its product pipeline. It’s unclear how long folks will continue to get boosters, if these boosters will be combined with other flu vaccines, or whether people will simply lose interest in getting vaccinated for one more thing. In any case, it’s clear to me that many investors view Moderna’s money-making window as one that’s closing.

Just this week, Moderna minted a fresh 52-week low. So, perhaps today’s move can be partly attributed to investors buying the dip. In any case, this is a stock to watch from here, as it’s likely to see some volatility on the horizon.

On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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