Trending Tickers: $MRNA’s Plunge, $CEG’s Major Deal, $DJT Swings
This week, several stocks caught investors’ attention, driven by significant developments and market momentum. Here’s the breakdown of this week’s trending stocks:
Moderna ($MRNA) Records Sharp Sales Decline, Unveils Cost-Cutting Plan
Moderna, once a pandemic success story, detailed its diminished financial outlook and sweeping restructuring plans at the 43rd Annual J.P. Morgan Healthcare Conference, highlighting the biotech’s efforts to navigate the post-COVID market landscape.
Key Financial Updates
- Product sales reached $3.0-3.1 billion in 2024, largely from Spikevax® revenue – a dramatic drop from the company’s COVID-era peak. Despite falling sales, Moderna maintains a substantial war chest of $9.5 billion in cash reserves.
- The company unveiled an aggressive cost-reduction strategy, targeting $1 billion in cuts for 2025 and an additional $500 million in 2026, as it grapples with shrinking vaccine demand.
- Looking ahead to 2025, Moderna projects modest revenue of $1.5-2.5 billion, with earnings heavily weighted toward the second half of the year. The company is banking on combined sales from its traditional Spikevax and newly approved mRESVIA vaccines.
Pipeline Developments
- The company’s next-generation COVID-19 vaccine faces a critical FDA decision by May 31, 2025. Meanwhile, its RSV vaccine mRESVIA secured regulatory approval in 2024 for the 60-plus age group, marking a key diversification milestone.
- Early clinical data from rare disease programs showed encouraging signs. Trials for Propionic Acidemia (PA) and Methylmalonic Acidemia (MMA) treatments are advancing toward registrational studies in 2025, as Moderna seeks growth beyond vaccines.
- In oncology, Moderna completed a Phase 3 trial of its personalized cancer vaccine for melanoma in 2024, part of its broader push into individualized cancer treatments.
Strategic Direction Amid market headwinds, Moderna emphasizes three priorities: building new revenue streams, securing regulatory approval for up to 10 products through 2027, and streamlining operations to preserve capital.
Stock Price Movement
Moderna’s stock plummeted over 16% in a single trading day following the announcement. The sharp drop reflects investor concerns over the company’s reduced revenue outlook for 2025 and uncertainty about its ability to sustain growth as COVID-19 vaccine sales decline.
Constellation ($CEG) to Acquire Calpine: A $16.4 Billion Deal to Create the Leading Clean Energy Producer
In a significant announcement, Constellation Energy is buying Calpine Corp. for $16.4 billion, positioning itself to become America’s top clean energy producer. The deal brings together Constellation’s around-the-clock nuclear power with Calpine’s advanced natural gas and geothermal operations, creating an energy powerhouse that’ll stretch from coast to coast.
The Deal at a Glance
- The Price Tag: $4.5 billion in cash, 50 million Constellation shares, plus taking on Calpine’s $12.7 billion debt. After factoring in cash flow and tax benefits, they’re looking at a net price of $26.6 billion
- Combined Firepower: Together, they’ll manage nearly 60 gigawatts of clean energy capacity – spanning nuclear, geothermal, natural gas, hydro, solar, wind, cogeneration, and battery storage
- Market Reach: The merger pushes them into high-growth markets like Texas while boosting their customer base to 2.5 million nationwide
Why This Deal Matters
This strategic merger represents a substantial step in America’s shift toward cleaner, more dependable energy. Constellation’s nuclear know-how combined with Calpine’s natural gas and geothermal expertise means they’ll be better equipped to meet growing energy demands while keeping an eye on sustainability.
As Constellation’s CEO Joe Dominguez puts it: “By bringing together our zero-emission nuclear expertise with Calpine’s top-notch low-carbon operations, we’re creating America’s cleanest and most reliable energy producer.”
The Financial Picture
- Quick Returns: They’re expecting profits to jump by over 20% by 2026, with more than $2 billion in annual free cash flow
- Growth Potential: The combined company will have deep pockets to invest in zero-emission technologies, including advanced nuclear projects and battery storage
- Operational Strength: This merger brings together two teams known for running tight ships when it comes to safety, sustainability, and efficiency
Community Impact
Beyond powering homes and businesses, they’re promising to boost local economies through job creation, workforce development programs, and maintaining their combined $21 million yearly charitable giving.
What This Means for the Industry
Constellation’s acquisition of Calpine represents a notable transformation in the U.S. energy landscape. By joining forces and expanding their national footprint, they’re positioning themselves to deliver cleaner, more reliable, and affordable energy solutions that meet evolving customer needs.
The deal should close within 12 months, pending regulatory approvals, and marks an important milestone for America’s energy future.
Stock Price Movement
Constellation’s stock ($CEG) saw significant movement following the announcement. Shares initially surged 25% as investors responded positively to the deal, reflecting confidence in the strategic combination. Throughout the week, the stock experienced mixed trading sessions, alternating between gains and losses as the market continued to digest the implications of this major acquisition.
Trump Media & Technology Group ($DJT): Volatility Amid Trump Inauguration
With Donald Trump’s upcoming inauguration, $DJT—representing Trump Media & Technology Group, the parent company of the conservative platform Truth Social—has become a hot topic on Reddit’s meme stock forums.
Drivers of Volatility
Investor sentiment around $DJT has been fueled by two major developments. First, the anticipation of Trump’s return to political prominence has heightened speculation about the stock. Second, the looming U.S. ban on TikTok, set to take effect on January 19, 2025, unless its parent company ByteDance divests its U.S. operations, has stirred interest in social media alternatives. While Truth Social is not a direct alternative to TikTok, the broader reorganization of the social media landscape could create new opportunities for conservative platforms like Truth Social.
Stock Price Movements
$DJT experienced a rollercoaster week, jumping over 20% on Monday before sliding 8% the next day. The stock continued to exhibit sharp fluctuations, reflecting the high levels of speculation and uncertainty driving the market.
This article is for informational purposes only and is not investment advice or a solicitation to buy or sell securities. The content is based on publicly available information and reflects the author’s opinions as of the publication date, which may change without notice. All investments carry inherent risks, including the potential loss of principal, and past performance is not indicative of future results. Readers should conduct their own research or consult a financial advisor before making investment decisions. BBAE holds no position in the securities mentioned, nor are they compensated by the companies mentioned.
