Why Is Novavax (NVAX) Stock Down Today?


Today, Novavax (NASDAQ:NVAX) has been one of the hardest-hit vaccine stocks. Currently, NVAX stock is down about 12% on relatively little news.

Concept of vaccine against COVID-19. Glass medical vials with liquid. Ampoules with coronavirus vaccine on a medical glass table
Source: vovidzha / Shutterstock.com

That said, today has also been rather bearish for growth stocks overall. The Nasdaq has been hit hard as well, giving up yesterday’s gains and then some. All told, various macro forces seem to be top of mind for investors again.

For those looking at growth stocks, now may seem like a compelling time to get in. After all, many of these stocks have been beaten down for some time. Investors are willing to jump into high-growth stocks at better valuations. Perhaps “buy the dip” isn’t all that dead.

However, the prospect of aggressively tightening monetary policy still isn’t good for growth stocks. And, geopolitical concerns aside, discount rates are increasing. That dramatically reduces the value of growth stocks as well. For more speculative names like NVAX stock, this is even more true.

On top of this, Novavax has another key headwind investors are currently pricing in.

Why Is NVAX Stock Sinking Today?

Today, NVAX stock investors appear to have watched an interview from Dr. Anthony Fauci on the state of vaccinations in the United States. Specifically, Fauci commented that waiting for vaccines to be approved may be a bad idea. For those hoping for a quick U.S. approval of Novavax’s Covid-19 vaccine, Fauci’s comment is pretty bearish.

Like other vaccine stocks, Novavax has struggled to gain U.S. Food and Durg Administration (FDA) approval for its vaccine. What’s more, while the drug is approved in other markets, the U.S. remains a crown jewel for vaccine companies. Accordingly, Fauci’s interview has reshaped investors’ expectations for Novavax moving forward.

Of course, there still may be hope for approval at some point in the future. But the timing of that approval is now even more crucial for investors in NVAX stock. Right now, it doesn’t appear the FDA is in a hurry to bring new vaccines to market. That seems to have investors anticipating additional downward pressure for Novavax moving forward.

On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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