Has Moderna Made a Bear Market Blunder?
In the past 12 months, shares of healthcare company Moderna (NASDAQ: MRNA) have fallen by more than 55% (the S&P 500 is down just 4% over that stretch). Although the company has generated billions from its COVID-19 vaccine, investors are getting more concerned about what the future looks like for the company beyond just COVID.
Moderna has been sitting on billions in cash that could go a long way in investing in its business or even acquiring another company to expand its reach. Thus far, however, it has not found a deal to its liking. And with stocks recovering of late and rallying, the cost to acquire a business may only get higher from here on out. Has Moderna made a huge mistake?
One of the advantages of a bear market is that it brings lower valuations. For investors, that creates an opportunity to buy quality stocks at reduced prices that can set you up for long-term gains down the road. Companies themselves also have opportunities to do the same and acquire other businesses without having to pay nearly as much as they would have in the past.
Source Fool.com
