Vaxart Stock: Should You Buy the Dip?
The COVID-19 pandemic has set off a fierce race to develop vaccines and therapies to battle the disease, with investors predictably chasing after potential winners. The shares of some small biotechs have soared. One of the top performers of the year has been Vaxart (NASDAQ: VXRT). The company's stock soared 4,900% from the beginning of the year to its peak in July, soon after the company announced its COVID-19 vaccine would be part of an animal study sponsored by Operation Warp Speed.
Since the peak on July 14, shares have fallen 60% as initial investor enthusiasm has cooled off. Is this a buying opportunity for investors wanting to profit from a potential solution to the worst public health crisis in over a century?
It's not hard to understand the excitement. Vaxart specializes in technology to deliver vaccines in pill form, which clearly would have significant advantages over the other COVID-19 vaccine candidates in the race. Injectable vaccines require refrigeration, administration by medical professionals using personal protective equipment and syringes in a clinical setting, and a rather unpleasant experience by the patient. Pills travel well and can be taken painlessly at home.
Source Fool.com
