Send me real-time posts from this site at my email
Motley Fool

Why Novavax Stock Is Sinking Today

What happened

Shares of Novavax (NASDAQ: NVAX) were sinking 12.3% as of 11:06 a.m. EDT on Friday. The steep decline didn't stem from any negative development for the biotech but instead appeared to be caused by the overall stock market sell-off.

So what

What does the big drop for the biotech stock today mean for investors? At worst, nothing. At best, an opportunity to buy Novavax at a cheaper price.

Image source: Getty Images.

Most stocks fall when the overall market falls significantly (and rise when the market rises significantly). Those gyrations, though, often have no connection whatsoever with the individual stocks' prospects. That's definitely the case with Novavax.

How the economy is doing or what the latest jobless numbers are really don't matter for Novavax. What's most important for the biotech is how its COVID-19 vaccine candidate NVX‑CoV2373 performs in clinical testing.

So far, the story on this front is a good one. Novavax announced on Thursday that The New England Journal of Medicine published additional details from a phase 1 study of the experimental vaccine. The new data looked as promising as earlier results.

Now what

Novavax's shares could continue to be highly volatile, especially if the stock market remains choppy. The main thing to watch, though, is the progress of its phase 2 study evaluating NVX‑CoV2373. The company expects to report interim results in the fourth quarter of this year.

10 stocks we like better than Novavax
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Novavax wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of August 1, 2020

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.


Popular posts

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue