Over the course of the past months, the Moderna Inc (NASDAQ:MRNA) stock has been on the radar of most investors due to the company’s stellar work with regard to the COVID-19 vaccine. However, the stock is in focus among investors yet again for a different reason.
From today, the Modern stock is going to be included in the prestigious S&P 500 index and will replace Alexion Pharmaceuticals Inc. In recent months, the Modern stock has recorded considerable gains since its vaccine became one of the most widely used vaccines during the coronavirus pandemic. That being said, there are experts who believe that the stock is currently overpriced. Senior Research Analyst and Managing Director of the firm Jeffries, Michael Yee spoke about the Modern stock price at length during the course of a discussion with Yahoo Finance.
Yee stated that due to the success of its vaccine, the company’s stock has taken on ‘taken on a life of its own which is not entirely rooted in reality. He went on to state that at this point in time, the stock price seems to have priced in a wide range of assumptions over the course of the next decade. He added that those assumptions are yet to bear fruit and suggested that investors seem to believe that Modern is now the ‘Tesla of biotech’. Despite that, it cannot be denied that addition to the S&P 500 today is a major development for the company and it remains to be seen if it leads to a further spike in the Moderna stock price.