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Novavax stock price has been a significant disappointment for investors in recent months. After peaking at $332 during the Covid-19 pandemic, the shares have dropped to $7. They are now trading at an all-time low, with short interest increasing to 52%

No catalyst ahead

Novavax, a widely shorted Wall Street business, is facing issues as demand for COVID-19 vaccinations declines. The company lacks revenue diversification and is in worse shape than some other vaccine makers. Its pipeline comprises two COVID-19 vaccines that have been approved, a malaria vaccine, and possible approvals for seasonal influenza and COVID-19 + seasonal influenza vaccines, which may have a limited market size. Novavax’s financial condition is a source of concern, as seen by a considerably diminished cash balance. The company’s long-term cash balance has declined to $505.9 million from more than $1.2 billion in the same period in 2022. It also has a total long-term debt of $167 million and incurred expenses of $389 million. Other large vaccine makers are also having problems, and the industry is adapting in response.

Novavax stock price forecast

NVAX stock shows a consolidation phase between key support at $6.50 and resistance at $10.23 since March. Volume has been declining. The stock is oscillating around the 50-day and 25-day moving averages, indicating a bearish long-term outlook due to weakening business fundamentals. However, shorting the stock is questionable due to high borrowing costs and the possibility of the consolidation being an accumulation phase, potentially leading to a sharp rebound, especially in a market prone to short squeezes.