On Monday, Bristol-Myers Squibb (BMY) jumped by 10.49%. The firm benefited from AbbVie’s (ABBV) bad news. AbbVie said that its late-stage trial for emraclidine, an oral monotherapy treatment for schizophrenia, did not meet its primary endpoint.
The market is irrational: ABBV stock lost around $40 billion in market capitalization, even though the acquisition is worth $9 billion.
ABBV stock may attract buyers at the $174.43 level. However, the valuation is higher than the sector median. Still, investors may collect a 3.29% dividend yield by holding this stock.
Moderna (MRNA) lost 8.71% yesterday and is down 15.53% in the last week. The firm is pivoting its business away from its reliance on Covid vaccines. It is developing a potential cancer vaccine. Unfortunately, biotechnology investors view Moderna’s Covid sales risk underperforming this quarter.
Moderna closed Q3 with $9.2 billion in cash. It burned through $900 million in cash sequentially. Avoid MRNA stock for now until the selling pressure eases.
In the AI sector, Monolithic Power (MPWR) dropped by 15% after an analyst at Edgewater Research issued a bearish report. The firm thinks that MPWR has performance issues for its voltage regulator module/Power Management IC. As a result, Nvidia (NVDA) will shift its allocation from MPWR to another firm.
MPWR pared its losses by late day on Monday when Oppenheimer reiterated its outperform rating.