What Happened?

Shares of vaccine biotechnology company Novavax (NASDAQ: NVAX) fell 8.7% in the afternoon session after the release of a key inflation report revealed prices paid to U.S. producers rose more than anticipated in January. 

The Producer Price Index (PPI), which measures inflation before it reaches consumers, increased by 0.5% last month, surpassing economists' forecasts of a 0.3% rise. This report, indicating persistent inflationary pressures within the economy, sparked concerns among investors. The data suggests that the Federal Reserve might delay potential interest rate cuts that the market had been anticipating. The prospect of higher interest rates for a longer period can negatively affect corporate valuations and borrowing costs, leading to a broad market downturn that is impacting various sectors, including healthcare and medical devices.

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What Is The Market Telling Us

Novavax’s shares are extremely volatile and have had 54 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock gained 24.4% on the news that the company reported fourth-quarter financial results that significantly beat analyst expectations. Novavax announced revenue of $147.1 million, up approximately 67% from the prior year's quarter and well ahead of forecasts. The company also posted a surprise profit with earnings per share (EPS) of $0.11. This was a significant beat, as analysts had expected a loss of $0.49 per share, and it marked a notable turnaround from a loss of $0.51 per share in the same period of the previous year. The strong top-line growth and unexpected profitability drove investor optimism.

Novavax is up 42.4% since the beginning of the year, but at $10.16 per share, it is still trading 9.2% below its 52-week high of $11.19 from February 2026. Investors who bought $1,000 worth of Novavax’s shares 5 years ago would now be looking at an investment worth $42.27.

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