Novavax Stock Rebounds As Traders Focus On Company’s Potential Outside U.S.
Shares of Novavax have found themselves under strong pressure last week, after the company reported its second-quarter results. The market was concerned by the company’s decision to submit for the emergency use authorization of its coronavirus vaccine in the U.S. in the fourth quarter as it was previously expected to do this in the third quarter.
On Friday, the stock made an attempt to settle below the $190 level as traders rushed out of Novavax shares on concerns about new delays. However, the stock quickly gained upside momentum and moved towards recent highs. Today, Novavax stock made an attempt to get to the test of the $250 level.
It looks that the market decided to focus on Novavax potential outside U.S. According to recent reports, Novavax vaccine can be approved in India without emergency use authorization in the U.S. India is a huge market with a population of more than 1.3 billion, and its vaccination rate is less than 10%, so it needs all vaccines that it can get.
What’s Next For Novavax Stock?
In the previous article on Novavax, I noted that the stock’s near-term performance would depend on whether it remains a part of the big “vaccine trade”.
Judging by the stock price dynamics in recent trading sessions, the market has easily shrugged off worries about delays in the U.S. and decided to focus on the company’s potential in India and other markets.
It is also possible that traders who have taken some profits off the table in high-flying vaccine stocks like Moderna and BioNTech have shifted some of the funds to Novavax to bet on the vaccine stock which has not yet rallied to all-time high levels.
In case the company gets positive news from India in the upcoming months, the stock will have a good chance to develop sustainable upside momentum.
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This article was originally posted on FX Empire