Moderna, GameStop, and Snap: Top Large-Cap Losers Last Week—What's Next for Your Portfolio?

Last week, from January 13 to January 17, several large-cap stocks took a hit, with Moderna (MRNA), GameStop (GME), and Snap (SNAP) among the top losers. As an investor, you might be wondering how these losses impact your portfolio and what strategies you can employ to mitigate risks. Let's dive into the data and explore the implications for your investments.

Moderna, a leading player in the mRNA market, saw its stock price decline by 12.5% last week. This loss comes after a year of resizing its COVID-19 manufacturing footprint for the endemic setting and increasing its U.S. COVID-19 market share to 48% in 2023. While the company achieved $6.7 billion in product sales in 2023, its losses may impact its ability to maintain or grow this market share.

GameStop, the video game retailer, experienced a 14.3% decline in its stock price last week. The company has been focusing on its e-commerce platform and digital transformation, but these efforts may not have been enough to offset the impact of a challenging retail environment.

Snap, the social media company, saw its stock price drop by 11.8% last week. The company has been facing headwinds from increased competition and regulatory pressures, which may have contributed to its losses.



As an investor, you can employ several strategies to mitigate risks associated with large-cap stocks:

1. Diversification: Diversify your portfolio across different sectors and geographies to reduce risk. While large-cap stocks like Moderna and Pfizer have performed well, investing in other sectors like AstraZeneca can provide additional diversification benefits.
2. Invest in growth sectors: Investing in growth sectors can help mitigate risks associated with large-cap stocks. The biotechnology sector, for example, has shown significant growth, with global biotech drug sales expected to reach over $800 billion by 2023. The mRNA market is also expected to reach over $100 billion by 2035, indicating its potential for growth.
3. Consider mRNA technology: Investing in companies that utilize innovative technologies like mRNA can provide exposure to potential growth areas. Moderna, a leader in mRNA technology, has shown significant growth, with its revenue increasing from $603 million in 2016 to $18.5 billion in 2021.
4. Monitor AI readiness: Investing in companies with strong AI readiness can help mitigate risks, as AI can drive innovation and improve operational efficiency. According to the "AI readiness of big pharma companies 2023," big pharma companies have made significant strides in AI adoption, with an average AI readiness index score of 6.5 out of 10.
5. Invest in companies with strong financials: Investing in large-cap stocks with strong financials, such as high gross profit margins and robust cash positions, can help mitigate risks. For instance, Moderna had a gross profit margin of 84% in Q3 2023, and its cash, cash equivalents, and investments at year-end 2023 were in excess of $13 billion.
6. Stay informed about regulatory developments: Keeping track of regulatory developments can help investors anticipate potential risks and opportunities. For example, Moderna's regulatory approval for its RSV vaccine (mRNA-1345) is expected in the first half of 2024, which could drive growth for the company.

In conclusion, the losses experienced by Moderna, GameStop, and Snap last week serve as a reminder that even large-cap stocks can be volatile. By employing diversification, investing in growth sectors, and monitoring AI readiness, investors can better mitigate risks and potentially enhance their portfolios' performance. As we move forward, it's essential to stay informed about regulatory developments and maintain a cautious optimism when investing in the stock market.