Moderna crashes from record highs, fuboTV pops, Virgin Galactic downgraded, Coinbase jumps

Yahoo Finance’s Jared Blikre reports on the day’s trending tickers.

Video Transcript

Let’s get a look at what’s going on in markets with Yahoo Finance’s Jared Blikre. And I want to kind of kick things off by taking a look specifically at Moderna and BioNTech, those two companies seeing some drops from Monday’s record highs. What are you seeing in the pharma space?

JARED BLIKRE: That’s right. Pharma is the worst-performing sector of the day, and in no hard part because of the weakness that we’re seeing in vaccine stocks. And we’ve highlighted these a number of times over the preceding weeks. And if we take a look at the WiFi interactive heat map, going to be a little bit different than what we’ve seen recently. So those dark red spots here– and it looks like I’m logged in with a different one. I will get into the correct one.

But I was looking at Moderna specifically, because there are reports that– Reuters is reporting that regulators are looking at new side effects from not only the Moderna vaccine, but also BioNTech and Pfizer. And these side effects are potentially allergic skin reactions and kidney ailments. And it was only yesterday that Bank of America, they had an Underperform rating on the stock already since February, and they got a little bit more bearish because of the valuation concerns.

Just being pessimistic. They wrote, BioNTech’s valuation went from unreasonable to ridiculous, speaking of Moderna, as the stock approached $200 billion in market cap. And so that would make it bigger than Merck, Bristol-Myers, Amgen. So clearly, therapeutics businesses with proven long-term track records as Bank of America notes.

All right. I do have our heat map up here, so let’s take one look at the pharmaceutical sector. And indeed– there we go. There’s that dark red I was talking about. Moderna down 18%, BioNTech down 18%, Pfizer down 3%. But if we take a look at what’s happened over the last month, Moderna is still sitting on gains of 60%, guys.

All right, Jared, let’s pivot here and talk about Fubo TV, Fubo getting a nice boost today after some of that subscriber growth much over some of the estimates. Tell us a little bit more about that.

JARED BLIKRE: Yeah. Really just knocking it out of the park. And I’m going to put this on an equal weighted basis so you can actually see Fubo. This is a tiny company compared to most of its cohorts here. On a year-to-date basis, you can see just about treading water.

It’s been in a consolidation over the last year. Kind of the same story, looking for that next catalyst, not really finding it with this particular report. But Wedbush is very supportive of it, saying that the results soared over forecast. And then Bloomberg Intelligence is describing its user growth as eye-popping.

But back to Wedbush. They hold this stock with a outperform rating and a price target of $53, so that’s over $20 over the current price. They’re saying that the company delivered a praiseworthy beat-and-raise as it soared over its revenue and subscriber forecasts in the second m provided a better than expected third quarter outlook, and boosted its full-year revenue forecast by more than its beat.

Now BMO, they have a price target that they just raised to $30 from $25, but still underneath the $31 price that you see there. They’re saying now that the product roadmap features gambling innovations like LiveSync. The likelihood of continued success is rising.

Just taking a look at the space again, I’m going to look at the market cap of all these companies here to see if we can dial that up. Maybe, maybe not. I just want to show you the size difference, and there we go.

So Fubo TV, that is a $4.36 billion company. The second most, I guess second least on this list, is Nielsen. But also, Roku, at nearly $50 billion, you’ve got to wonder what kind of consolidation we’re going to see in this space, if there’s any further consolidation to be had.

Jared, let’s shift the focus over to Virgin Galactic. Obviously, we saw a lot of movement in that stock after Sir Richard Branson blasted off into space. But people forget that it’s going to be a while before they have the next mission. So what are you seeing, specifically, in that space? No pun intended.

JARED BLIKRE: Well, I’m looking at the stock here, and you can see it’s a whole lot of sideways action. We got these two huge peaks over the last year. This was in January, February of this year. It was briefly a meme stock, so it had that working for it. Then people got excited about the launch again. Back down to Earth– another bad pun there.

But let’s go over the latest report from Morgan Stanley. Now, they are downgrading this stock to Underweight. And they’re saying that, after the expected flight of Unity 23 in September– that would be the second flight featuring people, I guess nine test pilots– Virgin Galactic’s sole mothership will be grounded for an eight-month enhancement period. Good news is, because of this heavy maintenance period, the company will not be able to conduct any space flights. So that’s the bad news until the summer of 2022.

But the good news is, is that the company is investing in its long-term space flight capacity. They hold this stock with a target of $25. You can see that’s just under the current price. And overall, the stock now has four buys, five holds, and two sells, according to Bloomberg data. I’ll tell you what. I’m looking forward to that second flight. I’ll probably watch that one, too. Did enjoy the first one, guys.

All right. And Jared of course, we can never let you go without at least in some way talk about cryptocurrency, even if it is somewhat indirectly. So let’s talk about Coinbase right now and how they are doing today.

JARED BLIKRE: Well, they just released earnings after the bell yesterday. And you can see they’re up 2% today. Now, since their IPO– this goes back to their IPO day– you can see, well, they’re still underwater by 16%.

On a candlestick basis, I have been noting some signs of life here. We’re able to get above these highs right here, but not a lot of movement after results. So maybe need another catalyst before it can pick up again.

Nevertheless, I do have some street commentary. BTIG, which holds it with a price target of $500– that’s quite above the current price of $275– they’re saying the results offer, quote, “promising indication that the company’s institutional offerings are getting traction with money managers. And they’re also expecting subscription and services revenue to become a larger part of the firm’s revenue mix. This is going to help cut down on volatility of the results and support a fuller valuation of the stock.”

There was a little bit of negative news with the third-quarter outlook, noting the decline in cryptocurrencies overall in the second quarter, saying, volumes might be a little bit less in the third quarter. But BTIG liking the fact that they’re helping to spread out their revenue mix among some different sources here, guys.