To The Moon

$Novo-Nordisk A/S(NVO)$ stock might have created some millionaires in 2020. It was at the peak of the COVID-19 vaccine race, and investors were betting on this biotech company to cross the finish line. That year, the stock surged 2700%, and if you locked in those gains and invested $40,000 in the stock, you might have become a millionaire.

Since then, Novavax shares have fallen more than 90% from their peak. The company disappointed investors by failing to reach the finish line for COVID-19 vaccine production in time and missing its biggest revenue opportunity. That's why Novavax launched a cost-cutting strategy last year, and even given some uncertainty, the company expressed concerns about its ability to continue operations.

But there are some bright spots. The beleaguered company has made progress in cutting costs, and the data for its COVID/flu candidate vaccine is strong. Given all this, can Novavax stock deliver repeat performance and help investors become millionaires?

The Novavax Story

Nowadays, demand for COVID-19 vaccines is declining, putting pressure on revenue prospects for all vaccine manufacturers. But for Novavax, the situation is most challenging. The company didn't generate billions of dollars in sales like competitors did at the height of the crisis.

Meanwhile, Novavax faces a special uncertainty: the dispute with the Global Vaccine Alliance (Gavi). Novavax says the organization didn't order the number of vaccines specified in the advance purchase agreement, and Gavi says Novavax violated the agreement and demands a refund of nearly $700 million.

Considering that Novavax currently has only about $600 million in cash, a favorable decision for Gavi could be extremely bad news for the biotech company. The dispute is being arbitrated, and the arbitration ruling could have a positive or negative impact on the stock.

Millionaire Makers?

Now let's get back to our question: can Novavax help investors become millionaires?

It's rare for just one stock to make investors earn millions of dollars, and it's risky to put a large amount of cash into one stock, especially when it's a high-risk company like Novavax. While aggressive investors might want to hold a small stake in the company, it might not be enough to generate millions of dollars in returns if the company's shares rise.

Wall Street has high hopes for Novavax's shares, predicting that the company's shares could rise more than 370% over the next 12 months. But even that kind of gain wouldn't generate $1 million in earnings unless investors made a huge bet on Novavax.

However, if everything goes well for the company and over time, then Novavax might help investors become millionaires. But now, considering the challenges facing Novavax, it might be a good idea to wait and see until some uncertainties are resolved.

Disclaimer: For informational purposes only. Investing involves risks. Past performance is not indicative of future results.