Moderna stock plummets after reaching new high, should you sell?

Moderna stock was the stock of the week last week after it soared to a new high of $497 per share, a big move from its 52 weeks low of $54. Although the company has seen great success from the production of the Covid-19 vaccines, still analysts are finding a hard time seeing the value in the current share price of MRNA stock. 

Today, the stock is selling $390 per share and it may be on its way to the 3rd straight day of losses. A lot of short term call options that expire on August 13th, 2021 will probably expire worthless.

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Moderna stock is going down in share prices because people are taking profit after an aggressive move within a week. Also, those who bought late into the stock are also selling because they are losing money.  

"To justify $200 billion in value, one has to assume: i) 1 to 1.5 billion doses of COVID-19 vaccine each year from 2022-2038, and ii) 100% probability of success for the entire pipeline with aggregate peak sales of $30 billion," BofA explained.

While the bank remains positive on the mRNA technology Moderna uses to develop its therapies, it believes the above assumptions are "impossible to justify."