Moderna Reducing Workforce by 10,000 Amid Growing Commercial Struggles. What Investment Strategy is Advisable for MRNA Shares at Present?
In the wake of the pandemic, Moderna, the biotech firm based in Cambridge, Massachusetts, has experienced a significant shift in its financial performance and stock price. The steep decline in COVID-19 vaccine sales has been the primary catalyst for this change.
Since reaching a peak of nearly $500 in 2021, Moderna's stock has plummeted over 94%, reflecting a sharp drop in revenue as the global demand for COVID-19 vaccines stabilized and shifted to a seasonal pattern. This decline is evident in the company's Q2 2025 earnings report, which showed a loss of $2.13 per share and revenue of $142 million, down 41% year-over-year. The decline in revenue was mainly due to shrinking demand for Moderna's COVID-19 vaccine, Spikevax, which made up nearly all of the $114 million in product sales in that quarter.
Despite these challenges, Moderna's financial outlook remains cautiously optimistic. The company's substantial cash reserves, ongoing research and development investments, and a robust product pipeline provide a potential catalyst for future growth. Moderna is expected to close 2025 with approximately $6 billion in cash and investments.
One of the key financial highlights post-pandemic is Moderna's revenue decline. In Q2 2025, the company reported $142 million in revenue, down 41% year-over-year from $241 million in Q2 2024. Analysts expect a 53.3% revenue drop year-over-year.
Moderna's negative earnings are another significant factor. The company posted an expected earnings per share (EPS) loss of -$3.00 in Q2 2025.
However, there is potential for recovery. Despite steep losses, analysts see an upside from the current stock price of approximately $30.45, projecting an average price near $46.90 within one year, suggesting more than 54% upside potential from current levels. The mean price target for Moderna stock is $41.90, implying a potential rally of 57% from current levels.
Moderna is also betting big on a pipeline loaded with next-gen mRNA shots in oncology, rare diseases, and latent viruses. The company is intensifying cost optimization and investing heavily in research and development to build a broader product portfolio, aiming to restore growth after the post-pandemic revenue collapse.
As part of this cost-cutting strategy, Moderna is cutting roughly 10% of its workforce as part of a plan to reduce annual operating expenses by $1.5 billion through 2027. The company's R&D guidance for 2025 has been trimmed to $3.6 billion and $3.8 billion.
Wall Street's confidence in Moderna has softened, reflected in updated price targets. Among the 26 analysts covering Moderna, the consensus rating is a "Hold". Analysts expect Moderna's losses to deepen by 11% year-over-year to around -$9.82 per share in fiscal 2025. However, they anticipate a narrowing of Moderna's losses by 27% annually to -$7.21 per share in fiscal 2026.
This cautious optimism contrasts with other biopharma companies that have diversified successfully post-blockbuster drug declines, exemplifying the industry-wide need for pipeline innovation. Moderna became famous during the pandemic for delivering one of the first mRNA-based Covid-19 vaccines. However, with vaccination rates falling and Spikevax sales drying up, revenues for Moderna have tumbled.
Despite delivery delays of U.K. vaccine orders pushing into early 2026, Moderna's vaccine brought in billions, positioning the company as a symbol of innovation and speed in a global crisis. In 2025 alone, Moderna's stock is down 37%, including a 12% dip in just the past month.
In summary, Moderna is navigating a challenging financial period with a dramatically lower stock price and revenue base. However, analyst expectations and its product development pipeline suggest possible recovery and growth over the coming years.
- Moderna's future growth might be influenced by its ongoing research and development investments in areas beyond COVID-19 vaccines, such as oncology, rare diseases, and latent viruses.
- To optimize costs and expand its product portfolio, Moderna is pursuing a cost-cutting strategy, which includes reducing its workforce by 10% and trimming its R&D budget for 2025.
- Despite the decline in Moderna's financial performance and stock price, experts in the health-and-wellness, finance, and investing sectors remain cautiously optimistic about the company's potential for recovery and future growth.
