Tuesday, August 10, 2021

Perhaps A Minor "Power Alley" Point, As Both Are Excellent Life Science Companies, With Deeply Profitable Futures... BUT:


. . .there is simply no chance that -- as of today, August of 2021. . . upstart Moderna has the same actual market cap value as venerable old Merck.

As many know, I love its mRNA vaccines future, and the efficacy of this approach is no longer in doubt. . . but late last year, I said Moderna was fully valued at $150/share (I bought it -- at around $37/share). So. . . I sold it.

Today it is over $420 a share, with a market cap at $194 billion, and that (at least temporarily) eclipses Merck and its Keytruda juggernaut. That's. . . just nutty.

Perhaps a decade from now, Moderna will actually be defensibly worth that $420 a share price. . . but it is not -- today.

Merck is the better, steadier revenue bet.

Now I've said my piece. Moderna is. . . overheated -- but still a very solid performer. Just too expensive at this price. Cheers, one and all!

नमस्ते

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