Novavax Posted a Profit in Q2. Here's Why It Doesn't Matter
Novavax (NASDAQ: NVAX) has gone from a pandemic darling to a bust, with its shares falling by a whopping 83% over the past 12 months. The hope and optimism surrounding the stock has faded. Earlier this month, the company reported a surprise profit, briefly creating some bullishness around the business. But that result isn't indicative of the company's future, and investors should be careful not to buy the stock based on that result.
On Aug. 8, Novavax reported a positive earnings result for the second quarter. Revenue of $424.4 million for the period ending June 30 was more than double the $185.9 million the company reported in the prior-year period. The boost in revenue was enough to cover its operating expenses of $369 million, leaving just over $58 million in profit for the healthcare company. Profits have been few and far between for Novavax, even as it has generated revenue from its COVID vaccine.
NVAX Net Income (Quarterly) data by YCharts
Source Fool.com
Novavax Inc. Stock
With 6 Buy predictions and only 2 Sell predictions the community sentiment for the stock is positive.
As a result the target price of 21 € shows a very positive potential of 74.94% compared to the current price of 12.0 € for Novavax Inc..
