Why Novavax (NVAX) Stock Is Falling

Novavax Inc NVAX shares are trading lower by 9.8% to $8.40 during Monday’s session amid weakness in vaccine stocks after Moderna issued 2025 revenue guidance below analyst estimates.

What To Know: Shares of several vaccine makers, including Novavax, dropped sharply on Monday as Moderna’s announcement of lower-than-expected 2025 revenue projections rattled investor confidence across the sector.

Moderna, whose stock fell around 23% Monday morning, expects 2025 revenues of $1.5 billion to $2.5 billion, significantly below the consensus of $2.95 billion, largely tied to weakening demand for its Spikevax COVID-19 vaccine and mRESVIA RSV vaccine.

Read Also: Why Novavax Stock Is Volatile This Week

The news also intensified concerns about diminishing COVID-19 vaccine revenues and broader industry challenges as pandemic-driven demand continues to wane.

What Else: Novavax, which relies heavily on its COVID-19 vaccine sales, saw its stock decline likely amid fears that heightened competition from Moderna's streamlined portfolio strategy could erode market share further.

The selloff could also reflect a broader skepticism about vaccine makers’ ability to adapt to post-pandemic market realities, with investors reevaluating growth prospects and long-term demand for new and existing products in the space.

Read Also: Wall Street Slashes Interest Rate Cut Bets After Jobs Data: Are Hikes Back On The Table?

Should I Sell My NVAX Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of Novavax have gained 94.47% year to date. This compares to the average annual return of -56.39%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Novavax stock currently has an RSI of 58.05, indicating neutral conditions.

For analysis tools, charting data and access to exclusive stock news, check out Benzinga PRO. Try it for free.