Moderna (MRNA -2.23%) is famous for developing vaccines using mRNA technology (thus, its ticker symbol) — including its highly popular COVID-19 vaccine a few years ago. Enthusiasm over that vaccine helped propel the stock some 434% in 2020 and another 143% in 2021. Wow, right?
But what has the stock done for shareholders lately? How has it done over the past five years? Not so great. It has averaged annual losses over that period — enough to turn a single $10,000 investment in early September 2021 into just $3,792 in early September 2026. Ouch!
Image source: Getty Images.
However, the story doesn’t end there. What if you bought into the biotech stock with $10,000 just one year ago? Your stake would now be worth… $62,344. The stock has surged more than 500% over the past year!
Today’s Change
(-2.23%) $-3.32
Current Price
$145.55
Key Data Points
Market Cap
$58BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.
Day’s Range
$141.52 – $154.69
52wk Range
$22.28 – $176.66
Volume
15M
Avg Vol
15.6M
Gross Margin
12.57%
The reason why is rather understandable: Moderna has been making some auspicious announcements. For starters, it has received regulatory approval for its updated COVID-19 vaccines. More intriguingly, it has also reported strong clinical trial results for its drug to treat melanoma, a form of skin cancer (the drug was developed in partnership with Merck). A potential vaccine against cancer is a big deal, obviously, and Moderna co-founder and board chair Noubar Afeyan has suggested that this vaccine could be a springboard for vaccines against kidney, bladder, and lung diseases, among other conditions.
Given all that, should you invest in Moderna now? Well, maybe. The company has been posting net losses instead of gains over the past few years, which isn’t attractive. However, it also has far more cash than debt, which is promising. Another plus is Moderna’s proprietary knowledge and technology, which isn’t easy for a rival to duplicate. It has dozens of treatments in its pipeline, too.
Given Moderna’s great promise, I think it’s reasonable to buy a few shares now — or wait and hope for a pullback. Research it further first, of course.
Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Merck and Moderna. The Motley Fool has a disclosure policy.