How to Buy Moderna (MRNA) Stock

Invest in Moderna stock today with Interactive Brokers as your trusted online brokerage.

As a biotechnology company at the forefront of mRNA technology, Moderna gained significant attention during the COVID-19 pandemic with its innovative vaccine solution. However, with the stock market constantly fluctuating, it's essential for potential investors to not only understand the fundamentals of buying MRNA stock but also the overall landscape of the biopharmaceutical sector. 

Whether you're a seasoned investor or a newcomer looking to dip your toes into the biotech waters, understanding how to buy Moderna stock can pave the way for potential financial growth. We’ll explore the steps required to buy shares through brokerage accounts, examine key market trends impacting Moderna's performance and consider the long-term prospects of investing in mRNA technology.

How to Buy Moderna Inc. Stock

Moderna traded its shares publicly in 2018 and the company had the largest biotech IPO ever in American history. Traders who bought Moderna shares in the past are among the biggest gainers in 2020, particularly with its vaccine news. Read on to learn how to buy Moderna stock now.

Pick a Brokerage

Most people feel comfortable and choose to invest through a brokerage. A broker acts as the intermediary between you and the stock market. There are different types you can choose from and each provides different benefits:

• Discount brokers provide an affordable option if you don’t need much support. You won’t find investment advice or review your portfolio with a discount broker. You’ll make investment and trading decisions completely on your own. 
• Full-service brokers can provide comprehensive advice and guidance. Expect to meet with your broker to discuss your investment goals. Full-service brokerages can help you research investments with your goals in mind and offer you personalized advice. 

We encourage investors who use full-service brokers to consider using a broker that has a fiduciary duty. 

You can consider the following questions to narrow your search:

1. What are your investment needs?
2. What are the available features in the brokerage firm and are they useful to you?
3. How much will you pay in fees?
4. What is the broker’s platform like?
5. Does the broker offer any educational materials?
6. What banking options does the online broker have?
7. How responsive is customer support?

If you need more support, go with a full-service broker. Discount brokers offer less guidance but can be an inexpensive way to get started. 

It’s always a good idea to research your broker or brokerage firm to better understand the services offered. Online reviews can provide feedback if you don’t have a personal recommendation from someone you know and trust.

Watch Stock Price

It’s important to stay updated on the stock prices but avoid checking them like social media posts. Stocks are long-term investment options and constantly checking stock prices could cause anxiety. 

Instead, focus on news or updates related to Moderna that could affect the long-term price of the company's stock price.

Moderna Inc. Stock History

Moderna, Inc. made its debut on the Nasdaq stock exchange on December 7, 2018, with an initial public offering (IPO) price set at $23 per share. The company's stock initially saw modest growth, but this changed dramatically as the world grappled with the COVID-19 pandemic. With its innovative messenger RNA (mRNA) technology, Moderna emerged as one of the frontrunners in the race to develop a COVID-19 vaccine.

By the end of 2020, the stock price surged as the company reported successful trial results for its vaccine candidate, mRNA-1273, leading to Emergency Use Authorization (EUA) from the U.S. Food and Drug Administration (FDA). This monumental achievement propelled Moderna's share price to reach over $150 by the end of December 2020, reflecting investor optimism about the company's role in combatting the global health crisis.

As 2021 unfolded, Moderna capitalized on the strong demand for its COVID-19 vaccine, further boosting its stock value. The company reported substantial revenue from vaccine sales, with quarterly earnings reflecting the high uptake of its product. In September 2021, the stock peaked at over $400 per share, marking an incredible increase of more than 1,600% since its IPO.

Entering 2022, the stock market began to shift as the global pandemic landscape changed. The company's stock fell considerably from its highs in 2021, dipping below $130 by September 2022. Despite ongoing efforts to develop booster doses and vaccines targeting new variants, the market’s sentiment turned cautious.

As of early 2024, Moderna’s stock price has shown signs of recovery, bolstered by positive updates on new vaccine candidates and collaborations in the biotech sector. The stock continues to exhibit volatility, influenced by broader market trends and the evolving dynamics of the pharmaceutical industry.

Pros of Buying Moderna Stock

Investing in Moderna stock offers several compelling advantages that can make it a strategic addition to your portfolio, particularly in the context of the company’s innovative vaccine technology and its potential for future growth in the biopharmaceutical industry.

• Strong position in mRNA technology: Moderna is a leader in mRNA vaccine technology, which has shown tremendous success with its COVID-19 vaccine. This technology has potential applications in other areas, including treatments for cancer and infectious diseases, possibly leading to strong future growth.
• Growing demand for vaccines and therapeutics: The ongoing global focus on public health and increasing demand for vaccines and innovative therapeutic solutions can lead to continued revenue growth for Moderna, especially if they expand their pipeline and develop new products.
• Partnerships and collaborations: Moderna has established various partnerships with governments and organizations, which not only provides funding but also enhances its credibility and market reach. These collaborations may lead to more successful product developments and wider distribution.

Cons of Buying Moderna Stock

While investing in Moderna stock may seem appealing due to its promising growth and potential in the healthcare sector, there are several cons to consider that could impact the overall investment decision.

• Market volatility: The biotech sector, including companies like Moderna, can be highly volatile, with stock prices subject to rapid fluctuations based on clinical trial results, regulatory approvals, and market perceptions. This volatility can pose significant risks to investors.
• Dependency on COVID-19 vaccine revenue:*A substantial portion of Moderna's revenue has come from its COVID-19 vaccine. As the pandemic subsides and demand for vaccines stabilizes, there may be concerns about how the company will sustain revenue growth without relying heavily on COVID-19 products.
• Competition: The pharmaceutical industry is highly competitive, and numerous companies are developing similar mRNA technologies or vaccines. Increased competition may limit Moderna's market share and pricing power, impacting its long-term profitability.

Final Thoughts on Investing in Moderna Stock

Investing in Moderna (MRNA) stock presents a notable opportunity, particularly given the company's pioneering role in mRNA technology and its impressive portfolio of vaccines and therapeutics.

As the world continues to navigate the complexities of global health challenges, Moderna's innovative approach positions it at the forefront of the biopharmaceutical industry. However, you should weigh the volatility associated with biotech stocks and stay informed about ongoing clinical trials, regulatory approvals and market dynamics.

By conducting thorough research and considering both the risks and rewards, you can make informed decisions about including Moderna in your portfolio. As always, aligning investment strategies with individual financial goals and risk tolerance remains crucial in exploring this dynamic sector.

Frequently Asked Questions