Morgan Stanley recently released its bullish take on the biotech space, driven by anticipated interest rate cuts and a surge in mergers and acquisitions (M&A) activity. The analyst firm states biotech stocks typically outshine the market just before a rate cut. Moreover, increased optimism spurs an uptick in M&A activity, contributing to a more active biotech sector.
Hence, discarding underperforming biotech stocks to sell is imperative, as the industry is picking up steam again. This strategic pruning can help solidify a portfolio’s performance, especially in sectors finally catching up following years of underperformance. As the biotech market shows signs of improvement, understanding which stocks to sell can help shield investors from the upcoming volatility.
Moderna (MRNA) Moderna (NASDAQ: MRNA ) shot to fame following the release of its groundbreaking mRNA Covid 19 vaccine. However, since then, it has failed to build meaningful growth drivers to strengthen its long-term bull case. Moreover, as a poster child for mRNA technology, Moderna is now front and center with medical experts scrutinizing the technology’s reliability.
Potential toxicity to the risk of causing autoimmune and cardiovascular issues continues to cast a shadow over the brand. However, we’ve seen robust activity in MRNA stock in the past year, with the most recent spike spurred by fears of a bird flu outbreak . The breakout is reminiscent of the pandemic when its MRNA stock jumped to record highs.
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