Moderna, Roblox, Virgin Galactic, Hookipa Pharma: Weekly News Digest (14 - 18 February)
Why did the share price of Moderna and other makers of anti coronavirus vaccines fall? Which part of the Roblox report did not live up to the expectations of Wall Street analysts? What made the share price of Virgin Galactic grow this time? Why did investors notice the shares of Hookipa Pharma? All answers in our weekly stock market news digest.
FDA decision sent Moderna shares down by 12%
At the end of last week, the US Food and Drug Administration announced that its meeting scheduled for 15 February 2022 was postponed.
In the meeting, experts were to discuss the vaccination of children under five years against COVID-19. The FDA said it required more information from the vaccine manufacturers to discuss the matter and make decisions. As you remember, children under five are currently the only age group that is not eligible for the vaccines yet.
On Monday, 14 February 2022 Moderna Inc's (NASDAQ: MRNA) stock price plunged 11.68% to $142.47.
The share prices of some other manufacturers of vaccines against COVID-19 also fell: Pfizer Inc. (NYSE: PFE) dropped 1.93% to $49.8, BioNTech SE (NASDAQ: BNTX) fell 9.61% to $154.53, and Novavax Inc. (NASDAQ: NVAX) saw an 11.42% drop to $80.11.
Quarterly report sent Roblox stock down 27%
The company's earnings report for Q4 and the whole of 2021, published on Tuesday, 15 February 2022, disappointed investors and analysts. On the same day, Roblox Corp's stock quotes (NYSE: RBLX) plunged 26.51% to $53.87.
It is worth noting that in October-December 2021, the average daily number of active users of the game platform had seen a 33% growth to 49.5 million people, while the revenue from selling virtual services had increased 20%.
According to Bloomberg experts, the reason for the lagging of the main financial results of Roblox from the expectations is that the COVID-19 pandemic did not provide for as many new players as it did in 2020 when there were extended periods of lockdown more often, and homeschooling was the norm.
|Revenue||$568.8 million (+83%)||$1.9 billion (+108%)|
|Loss per share||$0.25 (-17%)||$0.97 (-30%)|
|Net loss||$143.3 million (+144%)||$491.7 million (+94%)|
VVirgin Galactic shares grew 32%
On 15 February 2022, the space company Virgin Galactic announced the start of sales for its upcoming flights with 1,000 tickets. Each flight ticket costs $450,000. Clients can reserve a seat by paying a deposit of $150,000.
The experience involves spending several days at the Virgin Galactic base, getting ready for the 90-minute suborbital flight. The company is ramping up commercial flights starting in 2023. It is scheduled to offer as many as three commercial routes per month as soon as it completes upgrades to its carrier airplane and introduces a second spaceship.
On Tuesday, supported by the news about the first flight tickets going on sale, the Virgin Galactic Holdings Inc. (NYSE: SPCE) stock price leaped up 31.94% to $10.74.
Hookipa Pharma shares grew by 55%
On Wednesday, 16 February 2022, Hookipa Pharma Inc. (NASDAQ: HOOK) became the leader of growth amongst the companies that form the NASDAQ Composite index. Its share price saw a remarkable increase of 54.48% to $2.07.
Hookipa Pharma is a biopharma company that works on a new class of drugs for immunotherapy based on a patented arenavirus platform.
The stock started growing after the news that Hookipa Pharma and Gilead Sciences Inc. (NASDAQ: GILD) agreed on changing the terms of their cooperation. This step was taken to promote the creation of new arenavirus therapy for HIV.
As soon as the amended agreement is signed, Gilead Sciences will give Hookipa Pharma $15 million, and $30 million more until 31 December 2022.
The FDA suspended the approval of the vaccines against the coronavirus for children under five years – consequently, Moderna shares dropped 12%.
The quarterly report of Roblox did not live up to the expectations of analysts, with the shares of the company dropping 27% as a result.
The shares of Virgin Galactic rose 32% after the market heard that the first tickets for the next suborbital flights went on sale.
Hookipa Pharma agreed on the financing and promotion of a new arenavirus therapy for HIV. The news made the shares of the biopharma company skyrocket by 55%.