Moderna Stock Surges Ahead of Nasdaq-100 Return

Moderna's stock surged on Monday, extending a year-long rally as investors anticipated its return to the Nasdaq-100 index later this week. Shares of Moderna (MRNA) climbed to around $204 in afternoon trading, up roughly 7% from Friday's close of $190.01. The company's market value now stands at about $82 billion, marking a more than fivefold increase from its 52-week low near $22 last November.

Nasdaq announced on October 1 that Moderna will rejoin the Nasdaq-100 before the market opens on October 9, replacing Warner Bros. Discovery, which is exiting due to its merger with Paramount Skydance. Moderna was previously dropped from the index in late 2024 but is now re-entering following a sharp recovery in its share price.

The rally in Moderna's stock has been largely driven by positive late-stage trial results for its personalized cancer vaccine, developed in collaboration with Merck. In August, the partners reported that the vaccine, given with Merck's immunotherapy Keytruda, delayed the return of disease in patients with high-risk melanoma. The companies are also exploring the vaccine's potential in lung, kidney, and bladder cancer.

Despite the rally, valuation concerns have been raised by analysts. Citi analyst Geoff Meacham downgraded Moderna to Sell from Neutral with a price target of $80, up from $60, citing the company's high market capitalization relative to its expected revenue and earnings. On Stocktwits, sentiment around MRNA has shifted from bearish to neutral, with some users expressing concerns about overvaluation.