Moderna Stock: Contract Review Sparks 7.2% Plunge

Moderna shares tumbled 7.2% to $31.17 on Thursday's NASDAQ trading, with the price briefly touching $31.04. The significant drop followed reports that US authorities will review a $590 million contract awarded to the company for developing an H5N1 bird flu vaccine. The contract, granted shortly before President Biden's term conclusion, directed Moderna to leverage its mRNA technology to address the current massive bird flu outbreak in the United States. This reassessment by the US Department of Health has created substantial uncertainty regarding the project's funding, deeply unsettling investors already concerned about the company's financial trajectory. Thursday's decline brings Moderna dangerously close to its 52-week low of $29.26 reached in February.

Financial Outlook Remains Challenging

The biotech firm's recent financial performance compounds investor concerns. Last quarter's results revealed a $2.91 per-share loss compared to a $0.57 per-share profit in the same period last year. Revenue simultaneously collapsed by 65.54% to $966 million. Despite these troubling indicators, market analysts maintain a median price target of $67.33, suggesting significant recovery potential. However, experts continue to project overall losses for 2025, forecasting a deficit of $9.922 per share – a stark contrast to the 52-week high of $170.35 recorded in May, which represents a potential upside of 446.52%.

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Source StockWorld