By 
Moderna Inc. announced yesterday that it has shipped its first batch of a potential coronavirus vaccine for human testing to the National Institute of Allergy and Infectious Diseases. Following this announcement, Moderna’s shares surged, closing 27.81% higher at $23.76.
In its latest earnings report, Moderna posted a net loss of $124.2 million, or $0.37 per share, for the fourth quarter of 2019. This was an improvement compared to the net loss of $141.4 million, or $1.14 per share, in the fourth quarter of 2018, and it beat analysts’ expectations of a $0.42 per share loss. However, the company’s revenue dropped by 60%, falling to $14 million in Q4 2019 from $35.4 million in the same quarter the previous year.
As a relatively new company, Moderna does not yet have any approved vaccines or treatments, but it is at the forefront of testing vaccines for the novel coronavirus and the Zika virus.
Moderna’s stock began trading in December 2018, reaching an all-time high of $29.79 on April 8th and an all-time low of $11.53 on August 7th, 2019.
On the technical side, the stock is on a bullish trajectory, setting fresh all-time highs. The first resistance level is expected at $30, a key psychological mark. The stock is currently trading outside the Bollinger Bands, and the RSI (14) indicator shows it has entered overbought territory.
On the downside, initial support is at $27.29, the daily low. The next support level is at $20.48, yesterday’s low, with additional support from the 50-day moving average at $20.14.
Investing in drugmaker companies during their early stages is inherently risky, and investors should exercise caution. Moderna’s stock has reached a new all-time high as positive news continues to drive the recent rally. Global developments around the coronavirus (COVID-19) may further propel the stock to record levels, fueled by speculation that Moderna might be nearing a breakthrough with its coronavirus vaccine.