Boeing is surging amid hopes of a Coronavirus VaccinePublished by Terence Mahier | Source
Boeing rose 6% in pre-market trading after Novavax began its Phase 1 trial of its coronavirus vaccine candidate 💉
A successful vaccine would allow individuals to travel safely and could lead to a rebound in air travel demand, still down 90% in the U.S. ✈️
The sector has been shattered by the coronacrisis and Boeing lost more than half of its market capitalization since Feb due to successive airlines canceling their existing orders and showing no signs of making new ones 📉
Novavax announcement comes a couple of days after Moderna also reported positive developments on its vaccine trial.
Will Boeing keep flying high on the news?
Boeing is a tricky trade because it is also the target of a potential black-listing from China if the trade war with the U.S. would come to a negative turning point ⚔️
On the other hand, some analysts have pointed out that Boeing is now at a bargain price ($145 a share compared to $440 at its all-time high one year ago) and that investors have undervalued the Defense branch of Boeing by only focusing on its plane business 🤔
Novavax is backed by the public-private Coalition for Epidemic Preparedness Innovations, funded in part by the Bill & Melinda Gates Foundation. Shares of Novavax were up 20% this morning 💪
Boeing rally seems to continue amid hopes of the economy reopening and air travel picking up. Airlines company are soaring including Delta Airlines up 14% just yesterday and continuing its rally today 📈
- Newspill Team 💊
27-May 08:37 (Eastern Time)
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