Vaccine maker Novavax (NASDAQ:NVAX) saw its shares jump 18% on June 5 and another 20% in pre-market trade this morning. NVAX stock is up over 300% year-to-date.
Novavax also said it will be able to deliver an updated Covid-19 vaccine , made without the use of controversial mRNA technology.
More important to investors may be the fact that of Novavax shares are now being held short, including over half traded off listed exchanges.
NVAX stock is due to open today at $24.10 per share, a market capitalization of about $3.6 billion on 2023 revenue of $656 million.
Vaccine or Short Squeeze?
Novavax has been here before. In early 2021, at the height of the Covid-19 pandemic, its shares traded at over $300.
But Novavax lost the race to deliver its vaccines to Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA). Shares fell to below $10 in 2023.
Pfizer stock has barely moved in the last 24 hours, but Moderna is up 10% Its stock price has risen by nearly $15/share, adding $5 billion to its market cap.
Now, with the Food and Drug Administration (FDA) in the midst of updating recommendations for a new strain called KP.2, Novavax is . The agency wants all new Covid vaccines this fall to . As fellow InvestorPlace.com contributor Josh Enomoto reports, Covid-19 remains a serious health threat.
Talk show host Peter Sagal recently because of Covid. Singer Linda Ronstadt is just getting her speaking voice back after a bout with Covid .
However, its vaccine may not be the main catalyst. The sentiment at Stocktwits , with some traders as evidence the stock can go further. Some are warning their friends, however, that quick profits , recommending they put their winnings here in something safer.
NVAX Stock: What Happens Next?
Novavax is trading far above its fundamental value, even with the latest good news priced in.
As of this writing, Dana Blankenhorn had a LONG position in MRNA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
