Moderna share rally could stutter ahead of Q2 earnings

The US-based drug maker saw its meteoric rally stall last week after news emerged that hackers linked to Beijing targeted the company’s Covid-19 vaccine ahead of its Q2 earnings on Wednesday 5 August.

Moderna saw its meteoric rally stall last week after news emerged that hackers linked to Beijing targeted the company’s Covid-19 vaccine ahead of its second quarter (Q2) earnings on Wednesday 5 August.

The US-based drug maker has seen its share price skyrocket in 2020 on hopes that the company will create a cure for the coronavirus pandemic, with the stock climbing close to 400% to a peak of 94p in mid-July.

However, the rally showed signs of stalling last week, with the stock losing 22% of its value since reaching an all-time-high on 17 July, with news of the hacking scandal worrying investors.

Another factor weighing on Moderna’s shares is its plan to pitch its coronavirus vaccine at around $50 to $60 per course, according to reports, which if true, puts its treatment far higher than other drug makers have agreed to charge governments.

The race to find a viable vaccine is quickening in pace every day, with Moderna facing stiff competition from rivals like AstraZeneca, GlaxoSmithKline, BioNTech and Pfizer.

On Monday, investor sentiment seems to have improved towards Moderna, with the stock up 1% at $74.87 at the time of publication, with the company’s share price up 289% year-to-date.

Moderna: financial guidance

Moderna has up to $2.4 billion to invest, including cash and investments of $1.7 billion and up to $0.7 billion in potentially available grants and awards this financial year.

In 2020, the company expects net cash used in operating activities and for purchases of property and equipment to be approximately $500 million, according to its own guidance.

China denies Moderna hacking allegations

Despite the Moderna allegations against Beijing coming from a US security official tracking Chinese hacking, China rejected the accusation that the hackers, which targeted the drug maker, were linked to it.

Last month, the US Justice Department filed a public indictment against two Chinese nationals that it accused of spying on the US, among them three unnamed North American targets that were involved in medical research aimed at fighting the coronavirus pandemic.

The indictment accused the two Chinese hackers of conducting ‘reconnaissance’ against a Massachusetts-based biotech firm (Moderna) known to be working on a Covid-19 vaccine in January.

‘Moderna remains highly vigilant to potential cybersecurity threats, maintaining an internal team, external support services and good working relationships with outside authorities to continuously assess threats and protect our valuable information,’ company spokesman Ray Jordan said.

Moderna: technical analysis

Moderna has been on a tear since last August, when the current uptrend began. After rising steadily into February, the trend took on new strength, according Chris Beauchamp, chief market analyst at IG.

‘But losses have been contained around the 50-day SMA (currently $67.03), as we saw in March, May and then early July, forming higher lows as the price continued its surge,’ he added.

‘A move back below $57 would be regarded as a bearish development, and we have yet to see a turnaround from the continuing losses of the past few days.’

How to trade stocks with IG

Looking to trade the Moderna and other stocks? Open a live or demo account with IG and buy (long) or sell (short) shares using derivatives like CFDs and spread bets in a few easy steps:

  1. Create an IG trading account or log in to your existing account
  2. Enter ‘Moderna’ in the search bar and select it
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Sell
Buy
-
-
China 300
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.