The COVID Unwind (MRNA, ZM, NFLX)

Moderna Inc (NASDAQ:MRNA) may have seen a climax in trend strength on the gap run earlier this month when it leaked positive but vague COVID-19 vaccine data and then dropped a secondary on the market.

At its height, we saw an RSI bear divergence after all-time high oscillator readings. And now, we are flirting with a primary trendline break, which doesn’t look terrific for the bag-holders who chased in above $80 on May 18.

Still, this is the vaccine story that Dr. Fauci has pumped more than any other at this point, so the story is far from written.

Moderna Inc (NASDAQ:MRNA) frames itself as a clinical stage biotechnology company, develops therapeutics and vaccines based on messenger RNA for the treatment of infectious diseases, immuno-oncology, rare diseases, and cardiovascular diseases.

As of February 15, 2019 the company had 11 programs in clinical trials and a total of 20 development candidates in six modalities comprising prophylactic vaccines, cancer vaccines, intratumoral immuno-oncology, localized regenerative therapeutics, systemic secreted therapeutics, and systemic intracellular therapeutics.

The company has strategic alliances with AstraZeneca, Merck & Co., Vertex Pharmaceuticals, Biomedical Advanced Research and Development Authority, Defense Advanced Research Projects Agency, and Bill & Melinda Gates Foundation; and a research collaboration with Harvard University. Moderna, Inc. also has a collaboration with Lonza Ltd. for the manufacture of mRNA-1273, a COVID-19 vaccine.

The stock has suffered a bit of late, with shares of MRNA taking a hit in recent action, down about -28% over the past week.

Moderna Inc (NASDAQ:MRNA) generated sales of $8.4M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -40.3% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($1.2B against $134.6M).

 

Zoom Video Communications Inc (NASDAQ:ZM) has seen declining momentum on follow-through trend moves, with volume dying off in recent action. This is a quintessential COVID-19 tech play.

Trendline support will be key, with confluence around the $160 level for stops to run.

Zoom Video Communications Inc (NASDAQ:ZM) trumpets itself as a video-first communications platform provider in the Americas, the Asia Pacific, Europe, the Middle East, and Africa.

The company’s product portfolio includes Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system that provides secure call routing, call queuing, call detail reports, call recording, call quality monitoring, voicemail, switch to video, and other services, as well as inbound and outbound calling services; and Zoom Chat enables sharing messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices for meeting and phone customers.

It also offers Zoom Rooms, a software-based conference room system; Zoom Conference Room Connector, a gateway for SIP/H.323 endpoints to join Zoom meetings; and Zoom Video Webinars enables users to conduct large-scale online events, such as town hall meetings, workshops, and marketing presentations.

In addition, the company provides Zoom for Developers that allows developers to integrate its video, phone, chat, and content sharing into other applications, as well as manages Zoom accounts; and Zoom App Marketplace enhance developers to publish their apps.

It serves education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries, as well as individuals.

Zoom Video Communications Inc (NASDAQ:ZM) pulled in sales of $188.3M in its last reported quarterly financials, representing top-line growth of 77.9%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($903.7M against $333.8M).

 

Netflix Inc (NASDAQ:NFLX) is in for a test with the potential to put a very large-scale failed breakout on the chart on a break back under the $400 level.

This is a ripe candidate if the COVID-19 fractured market unwinds back into a more traditional portfolio context.

Netflix Inc (NASDAQ:NFLX) trumpets itself as a company that provides subscription streaming entertainment service. It offers TV series, documentaries, and feature films across various genres and languages.

The company provides members the ability to receive streaming content through a host of Internet-connected screens, including TVs, digital video players, television set-top boxes, and mobile devices. It also provides DVDs-by-mail membership services. The company has approximately 167 million paid members in 190 countries.

In total, over the past five days, shares of the stock have dropped by roughly -8% on above-average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities.

Netflix Inc (NASDAQ:NFLX) pulled in sales of $5.8B in its last reported quarterly financials, representing top-line growth of 27.6%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($5.2B against $7.9B, respectively).

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