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NVAX Stock Alert: Why is Novavax diving today?

As markets open up today, the vaccine industry faces a grim landscape. The United States Supreme Court (USSC) yesterday blocked the vaccination mandate proposed by President Joe Biden’s administration. With the policy that would have required vaccinations or tests for all major companies downed, vaccine producers face an uncertain future. Although the USSC has approved another mandate, one requiring vaccines for healthcare workers in federally funded facilities, it affects a much smaller group. As a result, vaccine stocks that were on the rise just a few weeks ago are now in free fall, especially Novavax (NASDAQ:NVAX). As the stock of NVAX continues to decline, bears continue to watch it. And this time, they are not without reason.

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What’s going on with NVAX Stock

During the first hour of trading today, NVAX stock has soared, only to come down. As of this writing, his declines are just under 2% for the morning. This performance is in line with the trend displayed by the share during the second half of this week. Starting to slide yesterday, it is currently in the red by over 12% on the week and over 34% on the month.

The recent bad news for vaccine producers is not just lowering NVAX stocks. This morning saw the first winners of the vaccine race Pfizer (NYSE:PFE) and Modern (NASDAQ:MRNA) slide further into the red. germany BioNTech SE (NASDAQ:BNTX) follows suit. However, Novavax may have more reason to worry about the future of its industry than it does about its more established competitors.

Why is this important

It’s no secret that vaccine producers would have benefited greatly from Biden’s proposed mandate. Now, with the warrant seemingly dead in the water, they face an uncertain future. Even though cases continue to rise across the country due to the omicron variant, experts are watching the virus spike. And even with the increase in child hospitalizations, children’s immunizations are stagnating. Whichever way we turn it, it’s clear that the vaccine race is running out of steam.

For Novavax, the new viral wave caused by the omicron variant represented new hope. The smallest biotech producer missed its chance to secure a share of the vaccine market in the spring 2021 race. However, with the market clearly at a standstill, the company is unlikely to make any headway. in the USA.

Wall Street already seems to be taking note of the company’s uncertain future. Investor place Contributor Chris MacDonald notes that, “As a result, investors appear to be taking an increasingly bearish stance on NVAX stocks.”

They have many reasons to do so. The company’s chance to establish itself as a key player in the vaccine race in the United States is probably over. And while the company has gained approval from several other countries, it hasn’t been enough to help NVAX stocks weather the negative energy caused by current market dynamics. And like Investor place Contributor Chris Tyler speculates that the company’s constant absence from breaking news is doing the action a disservice.

What this means

It wasn’t that long ago that NVAX stock looked promising. As we see, however, the tides can change quickly. When the demand a business relied on suddenly disappears, it’s hard to be optimistic. Novavax should have gained a share of the US market to achieve the kind of growth its bulls were looking for.

That said, a bullish game on vaccine stocks may not be wise right now. As the term failed, our presidential administration should focus more on testing.

At the time of publication, Samuel O’Brient had (directly or indirectly) no position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the Publication guidelines.


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