Investors should seek diversity by picking stocks from different sectors. Novavax (NVAX) is a
biotechnology firm. Pinterest (PINS) is potentially an e-commerce firm and a social networking site.
Novavax rose from $40 to almost $80 when the Food and Drug Administration approved its Covid
vaccine. Within two days, the European Medicines Agency warned of Novavax’s severe allergic reactions
risk. Still, the vaccine has advantages. It has lower storage requirements compared to Moderna (MRNA)
and BioNTech’s (BNTX) vaccine. It is protein-based.
Novavax is very late with its vaccine approval. Its potential addressable market is smaller. The virus
morphed into an Omicron variant, a less deadly but highly transmissible strain.
The European Medicines Agency warned that Novavax’s vaccine could cause paraesthesia. It is assessing
this vaccine for the risk of myocarditis. As of last month, the European Union administered only 216,000
doses.
Beat up social networking stock Pinterest rose by 16% on July 15, 2022. Elliott, an activist investor,
bought a massive 9% stake in PINS stock. Its involvement could shake up the advertising slowdown at
Pinterest. This is a challenge. The entire sector faces lower ad revenue as the economy slows.
Investors should consider PINS stock. Investors clobbered social networking stocks. Pinterest is unique
and has strong prospects.