1. Moderna, Inc. (NASDAQ:MRNA)
YTD Return: -44.88%
Moderna, Inc. (NASDAQ:MRNA) is a biotechnology company specializing in messenger RNA (mRNA) therapeutics and vaccines. It develops synthetic mRNA that instructs cells to produce proteins to prevent or treat diseases. The company primarily focuses on vaccines, including its COVID-19 vaccine, and potential treatments for rare diseases, cancer, and other medical conditions.
Challenges and failures have had a substantial impact on the company’s stock price in recent years. The revelation that Moderna, Inc. (NASDAQ:MRNA) intends to cut its Research and Development (R&D) expenditure by about 20% over the next three years has put pressure on the company’s shares. This resulted from low vaccine sales and low sales estimates. The company intends to cut $1.1 billion from its yearly R&D spending by 2027 by ending five research and development initiatives. In addition to offering modest sales projections for 2025, the business is now aiming for a break-even operating result in 2028.
The stock suffered greatly due to the short-term challenges. These include RSV taking a while to ramp up and COVID-19 immunization rates, which are probably going to keep falling. Moderna, Inc. (NASDAQ:MRNA) anticipates submitting applications for approval of three of the ten new items that are anticipated by 2027 this year. These include the company’s next-generation COVID-19 vaccine, the new Covid/flu vaccine, and the RSV vaccination for high-risk people between the ages of 18 and 59.
Wall Street is optimistic about Moderna, Inc. (NASDAQ: MRNA), believing its stock is poised for growth. The company is set to roll out its RSV vaccine, mRESVIA, in the U.S., and received a positive opinion from the European Medicines Agency. Additionally, positive Phase III results for its flu and COVID-19 combo vaccine and recent alliances with BARDA and Mitsubishi Tanabe Pharma are expected to support its performance.
Moderna, Inc. (NASDAQ: MRNA) is confident in contributions from the EU market for sales in 2025 and 2026, and it continues to adapt to the dynamic vaccine market through new product roll-outs and partnerships.
Overall, MRNA ranks first among the 10 worst performing biotech stocks in 2024. While we acknowledge the potential of biotech companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MRNA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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