Why Moderna Inc. (MRNA) Crashed on Monday

We recently compiled a list of the The 10 Worst-Performing Stocks on Monday. In this article, we are going to take a look at where Moderna Inc. (NASDAQ:MRNA) stands against the other stocks.

Ten companies kicked off this week’s trading with significant losses, mirroring a wider market pessimism over growing trade tensions.

The declines came following the US imposition of additional tariffs on goods from Canada, Mexico, and China, and signals of potential retaliation of taxes on US goods.

On Monday, the Dow Jones lost another 0.28 percent, while the S&P 500 and the Nasdaq Composite both registered steep declines of 0.76 percent and 1.20 percent, respectively. The slump came following President Donald Trump’s announcements that he would slap a 25-percent tariff on Canadian and Mexican goods, while a special 60-percent rate would be taxed on Chinese products.

Our list of Monday’s top losers only considered the companies with at least $2 billion in market capitalization and $5 million in daily trading volume.

A scientist surrounded by vials and beakers in a modern laboratory, proudly displaying a vaccine.

Moderna Inc. (NASDAQ:MRNA)

Pharmaceutical giant Moderna Inc. (NASDAQ:MRNA) lost 7.28 percent of its value on Monday to end the day at $36.55 apiece as investors continued to sell off positions following Goldman Sachs’ downgraded outlook for the company.

Last week, Goldman Sachs downgraded Moderna’s stock rating to “neutral” from “buy,” saying that the negative revisions to product revenue guidance suggest that the biotechnology company has limited visibility into the sales trajectory of its respiratory vaccine business. Moderna earlier projected revenues for fiscal year 2025 to settle between $1.5 billion and $2.5 billion.

While recognizing that products in Moderna’s pipeline could contribute to sales in the medium term, including the individualized neoantigen therapy in partnership with Merck, as well as Phase 1/2 cystic fibrosis data in partnership with Vertex Pharmaceuticals, Goldman Sachs said high levels of operating expenses were an additional concern.

Overall MRNA ranks 4th on our list list of the worst performing stocks on Monday. While we acknowledge the potential of MRNA as an investment, 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.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.