What Happened?
Shares of biotechnology company Moderna (NASDAQ: MRNA) fell 3.6% in the morning session after JPMorgan added the stock to its list of top short ideas for the second half of 2025.
The investment bank's negative outlook stems from concerns over Moderna's continued cash burn, potential regulatory headwinds, and a lack of clear growth drivers in the near term. A "short" is a trading strategy where an investor bets that a stock's price will fall. While the stock has seen a recent bounce, it remains down significantly for the year. JPMorgan's analysts do not foresee a major rebound for the biotechnology firm. This assessment comes despite some recent positive news for the company, including an expanded FDA approval for its COVID-19 vaccine, Spikevax, for high-risk children.
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What Is The Market Telling Us
Moderna’s shares are extremely volatile and have had 51 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 3% on the news that the U.S. administration announced a sharp escalation in trade tensions by threatening new tariffs on Canada.
The wider market sentiment turned negative after the White House announced plans to impose a 35% tariff on Canadian imports, sparking renewed fears of a trade war. This news prompted a sell-off across major U.S. indexes, including the S&P 500 and the Dow Jones Industrial Average, as investors grew concerned about the potential economic impact of escalating protectionist policies. The healthcare sector is especially vulnerable to such tensions due to its deeply integrated supply chains with Canada for pharmaceuticals and medical devices, meaning increased costs and potential disruptions.
Additionally, ongoing U.S. policy headwinds aimed at lowering drug prices and specific corporate challenges, like those faced by UnitedHealth Group, further compounded the sector's decline. As a result, the Health Care SPDR ETF (XLV) fell 1.0%, underperforming even as major indices pared some losses.
Moderna is down 21.4% since the beginning of the year, and at $33.01 per share, it is trading 73.6% below its 52-week high of $125.14 from July 2024. Investors who bought $1,000 worth of Moderna’s shares 5 years ago would now be looking at an investment worth $439.83.
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