Is It Too Late to Buy Moderna Stock After Its 127% Surge?

Moderna's shares have experienced a remarkable resurgence this year, soaring nearly sixfold over the past 12 months. The latest surge, a 127% increase in just weeks, is attributed to advancements in the biotech company's pipeline. However, investors are now questioning whether Moderna can maintain these gains. The company's initial surge in 2009, following a similar 127% rise, serves as a cautionary tale.

At the time, a signal known as "Total Conviction" highlighted Nvidia as a promising investment, but it ultimately did not yield the expected returns. Now, a similar signal is emerging for Moderna, with its Intismeran Autogene vaccine candidate showing promising results in a phase 3 trial. While this progress suggests potential in applying mRNA technology to oncology treatments, it's important to consider two factors.

Firstly, the rally was likely fueled by a short squeeze, with shares initially jumping as much as 175% before cooling off. Secondly, commercializing these oncology MRNA products will take years, and the company's current revenue and losses indicate that significant potential is yet to be realized. Despite these considerations, the Motley Fool's Stock Advisor team has identified 10 stocks they believe are worth investing in now, with Moderna not among them.