Why Moderna Stock Is Continuing Its Losses Today

The sell-off in Moderna, Inc. MRNA's shares intensified Wednesday amid fears concerning stretched valuation and potential side effects from its mRNA vaccine.

Moderna shares closed at a record high of $484.47 on Monday, propelled by optimism concerning its vaccine against the novel coronavirus. The company last week raised its COVID-19 vaccine delivery forecast for 2021.

On Tuesday, the stock rose to an intra-day high of $497.94 before profit-taking led to a pullback.

Analysts believe the stock — by virtue of its astounding gains notched up since it kickstarted its COVID-19 vaccine program — is pricing in an extremely optimistic forecast for vaccine revenues, as well as a 100% probability of success for the rest of its pipeline.

BofA Securities analyst Geoff Meacham Tuesday said in a note Moderna's valuation has gone from "unreasonable" to "ridiculous."

The stock ended Tuesday's session down 5.73% at $456.76.

The sell-off intensified Wednesday, partly attributable to a release from the European Medicines Agency that said the drug regulator is probing into whether mRNA vaccines from Moderna and Pfizer Inc. PFE/BioNTech SA-ADR BNTX are linked with the appearance of three new conditions reported in vaccinated individuals.

The three conditions include erythema multiforme, a form of allergic skin reaction; glomerulonephritis, or kidney inflammation; and nephrotic syndrome, a renal disorder characterized by heavy urinary protein losses.

At last check, Moderna shares were sliding 16.04% to $383.49.