Why Is Novavax (NVAX) Stock Up 10% Today?

  • Novavax (NVAX) has surged more than 10% today on two important news items.
  • Investors appear to like a company statement showing strong efficacy for the company's Covid-19 vaccine against variants.
  • Additionally, expectations are that cases could surge this winter, providing a longer runway for vaccine makers.
NVAX stock - Why Is Novavax (NVAX) Stock Up 10% Today?

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One of the retail favorites that’s surging in today’s mixed markets is Novavax (NASDAQ:NVAX). NVAX stock is up around 10% today at the time of writing. That’s good news for investors who have held this stock for some time. After all, Novavax has lost more than 60% of its value year-to-date. And that’s including today’s surge higher.

This positive move in NVAX stock appears to be tied to recent reports about the potential for surging Covid-19 cases this winter. Additionally, a company statement regarding the efficacy of Novavax’s Covid-19 vaccines against all variants is something investors are taking positively.

It’s important to keep these news items in context. Earlier this month, Novavax received approval from the Food and Drug Administration (FDA) to distribute its vaccine. With a delay in this approval ultimately hitting NVAX stock hard, investors appear to have grown impatient with this stock. After all, the window of opportunity for vaccine makers may be closing, as more of the population is inoculated.

That said, I think these headlines are important for Novavax right now. Accordingly, I think today’s surge higher makes sense. Let’s dive into what investors may want to look at when it comes to this Covid-19 vaccine stock.

Is NVAX Stock a Buy?

Novavax is certainly a vaccine player that’s later to the game than more established rivals. Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA) share a vast majority of the market for Covid-19 vaccines. When it comes to boosters, this is likely to remain the same. Accordingly, this is one of the key reasons many investors have been turned off from Novavax.

However, today’s announcement around Novavax’s efficacy, especially against variants, is significant. With more FDA rules requiring vaccine makers to target new variants, perhaps Novavax has a shot at what’s left of the market. It’s better late than never, perhaps.

Additionally, with more Covid-19 cases (unfortunately) comes more hospitalizations and deaths. These sorts of events could lead to higher vaccination rates among those on the fence. That’s at least what investors in NVAX stock are hoping for.

Ultimately, Novavax still remains a highly speculative growth stock in a market that’s not valuing growth stocks like it used to. Accordingly, this is one that I’m going to happily watch from the sidelines. That said, the bull case with this company is much easier to understand today.

On the date of publication, Chris MacDonald did not have (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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