Why Novavax Is Sinking Today
Shares of Novavax (NASDAQ: NVAX) are down by 5.9% as of 11:29 a.m. EDT on Friday -- after plunging by more than 10% earlier today -- and this despite the company not reporting any news. However, we can probably attribute Novavax's slump today to the overall decline of the stock market. With confirmed cases of COVID-19 spiking in several states, renewed fears surrounding the prolonged effects of the pandemic are causing many investors to take their money out of the stock market.
Novavax has been at the forefront of the development of a vaccine for COVID-19. And as a result of its efforts, the company's stock has skyrocketed. Novavax's shares are up by about 1,800% year to date. These returns obviously compare favorably to those of the broader market; for that matter, they compare favorably to the performance of most other companies working on developing vaccines for the coronavirus. For instance, shares of Moderna (NASDAQ: MRNA) are up by a comparatively mild 207% since the beginning of the year. Now that a second wave of COVID-19 cases seems to be on its way in some states, though, some investors may be choosing to cash out their investments in Novavax.
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Source Fool.com
