Should You Give Up on Novavax?
During the early days of the pandemic, Novavax (NASDAQ: NVAX) jumped into the spotlight. That's after its COVID-19 vaccine program won a big investment from the U.S. government. And investors bet on the company's ability to bring its vaccine candidate to market. As a result, the shares skyrocketed, gaining more than 2,700% in a year.
But Novavax went on to disappoint investors. It won regulatory authorization a year after rivals, so it missed out on the initial big wave of demand and sales. Since then, the company hasn't been able to carve out much market share, and the stock has plummeted. In the fourth-quarter earnings report, the situation shifted from bad to worse. Novavax said various uncertainties exist, and they could lead to the company shutting its doors. Is it time to give up on this embattled stock? Let's take a closer look.
First, some background on what's happened so far. Novavax's revenue climbed last year for one simple reason. Last year represented its first full year of sales for the coronavirus vaccine, Novavax's only commercialized product. Total revenue rose 73% to $1.9 billion. The problem is revenue was lower than the $4 billion to $5 billion the company predicted earlier in the year.
Source Fool.com
