Friday, 27 August 2021

Hot stocks in South Africa - Robinhood and Moderna: the next big thing?

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Hot stocks in South Africa - Robinhood and Moderna: the next big thing?

27 AUGUST 2021: COVID-19 has dramatically altered the environment for traders, with relatively new top performers emerging over the last two years – largely in the tech space. Some big pharma companies have also performed exceptionally well, particularly during the race to get COVID-19 vaccines to market. One of these standout performers is Moderna – a relatively young company that has soared since it started up in 2010. Moderna is now available as a tradeable asset in the CMTrading portfolio, as is Robinhood – the American trading platform that launched its Initial Public Offering (IPO) this year. CMTrading uncovers the reasons these assets are worth watching.

Moderna – the vaccine specialist that’s going places

With the long-anticipated arrival of COVID-19 vaccines promising a return (at least in some part) to normal life for billions around the world, vaccine producers like Moderna have hit the stratosphere in the market, reaching heights of tens of billions of dollars in annual sales. 

Moderna was founded just 11 years ago and employed a mere 830 staff pre-pandemic. In 2021, it is expected to make billions from its mRNA vaccine. Earlier in 2021, the UK ordered 17 million doses, the EU 310 million, and the US government 300 million.  

The vaccine brought Moderna impressive revenue of $1.73 billion in the first quarter of 2021 and $4.4 billion in Q2, when earnings per share totaled $6.46. Overall, its stock price has quadrupled since the end of 2020 and stock shot up 325% from $98 to $416, as of August 5. In May, Moderna raised its full-year forecast of COVID-19 vaccine sales to $19.2 billion, based on advance purchase agreements in 50 countries.

What’s happens next?

Next, the company is setting out to explore a combination vaccine that aims to offer protection against both the common flu and COVID-19. 

Stéphane Bancel, Chief Executive Officer of Moderna says, "We are pleased that our COVID-19 vaccine is showing durable efficacy of 93% through six months but recognise that the Delta variant is a significant new threat so we must remain vigilant.” 

"We have begun preparing late-stage studies for our flu vaccine and RSV vaccine, which received fast track designation from the FDA a few days ago and are looking forward towards our vision of a single dose annual booster that protects against COVID-19, flu, and RSV for adults." 

Moderna’s plans for innovation in vaccines are set to see the company continue to rise and will be worth keeping an eye on – certainly in the short-term, but with very few signs of it slowing down, long-term success is probably on the cards too.  

Robinhood – Trading the traders

Hot off the press, Robinhood (often referred to as “HOOD”) launched its IPO in July 2021 and its price movements have been quite eclectic. At its initial offering, its stock closed 50.4% at $70.39 per share even reaching $85 at one point. After running up 87% between 2 and 4 August, HOOD stock then plunged 28% to $50.97 on 5 August and continued to drop. 

After a rollercoaster start, however, HOOD stabilised, trading below $50 by 17 august. Overall, this is a significant improvement from an initial $35 to its current price of $48,98 (at the time of writing, 26 August). Robinhood is currently managing around $80 billion in assets. 

In Q2, HOOD’s revenue surged following divisive Tweets from Elon Musk slating Bitcoin trading and praising Dogecoin. Dogecoin amounted to nearly 62 percent of HOOD’s commission-free cryptocurrency trading app at $233 million in Q2. 

What’s happens next?

In August, Robinhood announced that it would acquire tech start-up Say Technologies in a deal worth $140 million. This is a significant deal as it's Robinhood’s first major acquisition since going public. Analysts believe it shows where the trading platform may look to invest some of its newly acquired liquid equity from its IPO. 

Robinhood’s user base is growing daily, with sign-up largely driven by word of mouth and social media channels. And with more potential new acquisitions on the horizon, the company is certainly one to pay attention to. 

An exciting time to trade”

Director of Marketing for CMTrading, Jonathan Bergman, says, “This is a very exciting time to trade. And if you choose to undertake stock trading or forex trading with a reputable trading company, there are great returns to be made. The current environment is high risk in many ways, but with these circumstances, high returns are also a huge possibility. We live in a time, more than ever, where media carries major influence on trading and anyone who pays attention, trading in an informed manner, can make money – something many people are looking to do following the financial challenges faced during lockdown”. 

For more information on CMTrading, visit their official website at or call +27105008026, and one of their friendly staff will assist you. 

CMTrading is the brand name of Global Capital Markets Trading Ltd (A Seychelles company, company no. 104785)