Raphael Stevens

Covid-19 vaccine makers Moderna and BioNTech became household names almost overnight.
Moderna and BioNTech have spent their Covid vaccine windfalls differently, with Moderna investing in its own mRNA technology and BioNTech pursuing deals to diversify its pipeline.
Shares of Moderna have tanked over the past year, while BioNTech shares have risen amid excitement around one of its experimental cancer drugs.

A researcher works in the lab at the Moderna Inc. headquarters in Cambridge, Massachusetts, US, on Tuesday, March 26, 2024. 
Adam Glanzman | Bloomberg | Getty Images

The Covid-19 pandemic turned Moderna and BioNTech into household names almost overnight. Now the two companies are on different paths.
Both Moderna and BioNTech helped pioneer mRNA, or messenger RNA, technology. Moderna staked its entire identity around mRNA, while BioNTech saw it as one piece of a broader portfolio focused on immunology and oncology. The pandemic gave both companies a chance to prove mRNA’s promise of using the body’s own immune system to protect against viruses or treat diseases. 

Covid vaccines have generated roughly $45 billion in sales for each company, earning them each about $20 billion since their rollout in late 2020. But despite parallel booms after the pandemic, the vaccine makers have since taken their businesses in different directions — and Wall Street has noticed.
The two companies have spent their Covid vaccine windfall differently: Moderna doubled down on its mRNA pipeline, while BioNTech used the money to do deals and diversify, including into one of the hottest emerging areas of cancer drugs. Today, Moderna has about $8.4 billion in cash; the German-based BioNTech has €15.9 billion (or $18.2 billion). 
The divergence of the two companies is even more stark in their stock performance. Over the past year, Moderna shares have slid about 72%; BioNTech shares have gained nearly 29%. 
“Just their name was made based off the pandemic and the vaccines that they very quickly brought to people around the world to help get us through that period of time,” said Evercore ISI analyst Cory Kasimov. “But the approach they’re taking now and the outlook for these two companies is distinctly different at this point.”
Investors will get a fresh look at both companies’ performance as they post quarterly results in the coming days. Moderna is set to report Friday morning, followed by BioNTech on Monday morning.

Moderna took another step to cut costs Thursday as it announced it will slash roughly 10% of its workforce by the end of the year.

Differing priorities

Moderna used its Covid cash to build out its mRNA portfolio, particularly vaccines. It invested in shots for flu, RSV and lesser-known viruses like cytomegalovirus and norovirus. 
“From our perspective, the pandemic really showed that the science of what we’re doing worked, and the natural sort of response to that was to continue down that path and do more,” said Moderna President Stephen Hoge.
Funding such a large pipeline wasn’t cheap. The company has started slashing expenses as sales of its Covid vaccine slide and its RSV vaccine struggles to find a foothold. But the clock is running, said Leerink analyst Mani Foroohar. 
“We’re moving into a time where being a vaccine company is going to be more expensive, tedious and onerous,” Foroohar said, citing changes at the Food and Drug Administration under the leadership of Health and Human Services Secretary Robert F. Kennedy Jr., who has expressed skepticism about vaccines.
Foroohar in 2022 pointed out what he saw as a Shakespearean tragic flaw in Moderna’s business model. That shortcoming, in his view, is that Moderna scaled its pipeline assuming mRNA technology would be the tool for all problems instead of a solution for some problems. 
Hoge said Moderna’s “really good at making mRNA medicines” and decided to focus on doing that.”The reality is that we think over the last 10 years, that focus has actually made us successful, and in the pandemic, it certainly had a big impact and obviously was something that sets us up for the more diverse pipeline we have right now,” Hoge said. “So we recognize that we may be going through some cycles, but we’re pretty confident in the long-term trajectory we’re on, and we’re looking forward over the years ahead to showing with all these additional medicines what we’re really capable of.”

An mRNA model is placed in front of the “Area 100 R&D” research laboratory for personalized mRNA-based cancer vaccines at a new facility of BioNTech in Mainz, Germany, on July 27, 2023.
Wolfgang Rattay | Reuters

Meanwhile, BioNTech decided to use the proceeds from its Covid vaccine to diversify. Out of the limelight as partner Pfizer took the lead on selling the companies’ shot, BioNTech expanded into promising new cancer technologies.
Most importantly, it acquired a bispecific antibody targeting the proteins PD-L1 and VEG-F. That technology promises to build on – and possibly best – the success that Merck has found with Keytruda, a cancer drug with nearly $30 billion in sales last year alone. 
That thesis still needs to be proven in large, global clinical trials, but BioNTech is already seeing that deal pay off. Bristol Myers Squibb in June announced it would pay up to $11 billion to partner with BioNTech to codevelop the experimental drug, which BioNTech acquired for a fraction of that. BioNTech in 2023 initially paid Biotheus $55 million up front to license the drug outside China before acquiring the company outright earlier this year for up to $1 billion.
“[BioNTech] found an asset, they developed it, and then they got a pharma partner, it’s like a dream,” said BMO analyst Evan David Seigerman. “So they’re really strategic in that, and I think they’re adding a lot of diversification, which makes the story a lot less risky if you’re just focused on mRNA, vaccines and Covid, and that’s super risky, in my view.” 
At the same time, hopes are high that BioNTech’s bispecific antibody drug will work, meaning any disappointment ahead could hurt the stock. Investors are watching forthcoming Phase 3 trial results from Summit Therapeutics, which is testing a similar drug for lung cancer. Those data could help — or hurt — BioNTech’s stock while it awaits data from its own studies, which could take until 2028.
For Moderna, investors want to see if sales of its Covid and RSV vaccines can rebound. The company is also seeking FDA approval for an mRNA flu shot. But at this point, the most intense focus is on Moderna’s Phase 3 trial for a personalized cancer treatment for melanoma, said RBC Capital Markets analyst Luca Issi. 
Moderna may be able to share the first interim data as soon as next year, Hoge said, though the company can’t promise an exact date since it’s an event-driven study. That means enough people in the trial need to relapse before Moderna can analyze whether its treatment kept cancer from returning longer. If the treatment succeeds, it could launch in 2027 or 2028, Hoge said. 
That leaves Moderna largely dependent on its vaccines until then. An ongoing patent dispute over Moderna’s Covid-19 shot could also eat into the company’s cash, analysts say, adding they expect the legal proceedings to play out next year.
Time will tell whether the divergent strategies win over Wall Street long term. More

CVS Health reported second-quarter earnings and revenue that topped estimates and raised its adjusted profit outlook.
CVS CEO David Joyner pointed to strength in its retail pharmacy business and some improvement in its insurance unit, Aetna, which is grappling with higher medical costs.
The company now expects 2025 adjusted earnings of $6.30 to $6.40 per share, up from a previous guidance of $6 to $6.20 per share. 

CVS Health on Thursday reported second-quarter earnings and revenue that topped estimates and raised its adjusted profit outlook, as it sees strength in its retail pharmacy business and some improvement in its insurance unit. 
Shares of the retail drugstore chain jumped more than 9% in premarket trading Thursday.

The company now expects fiscal 2025 adjusted earnings of $6.30 to $6.40 per share, up from previous guidance of $6 to $6.20 per share. CVS also cut its GAAP earnings guidance, without disclosing additional details.
In an interview, CVS CEO David Joyner said the quarterly beat and guidance hike is in part “a tribute to the work and the effort underway within Aetna,” the company’s insurer. He was referring to a “multi-year recovery effort” at Aetna, which has been grappling with higher medical costs in privately run Medicare plans like the rest of the insurance industry. 
Joyner added that CVS’ retail pharmacy business is “performing really well,” demonstrating the company’s efforts to introduce new technology that improves pharmacy operations and drives efficiency. He also pointed to the company’s investments in labor and its new prescription drug pricing model, which has benefited payers and “separated the pharmacy from the pack.” 
But the company’s release said the strength in those two business units was offset by a decline in its health services segment. 
The results cap off the third full quarter with Joyner, a longtime CVS executive, as chief executive of the retail drugstore chain. Joyner succeeded Karen Lynch in mid-October, as CVS struggled to drive higher profits and improve its stock performance.

Here’s what CVS reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: 

Earnings per share: $1.81 adjusted vs. $1.46 per share expected
Revenue: $98.92 billion vs. $94.50 billion expected

The company posted net income of $1.02 billion, or 80 cents per share, for the first quarter. That compares with net income of $1.77 billion, or $1.41 per share, for the year-earlier period. 
Excluding certain items, such as amortization of intangible assets, restructuring charges and capital losses, adjusted earnings were $1.81 per share for the quarter.
CVS booked sales of $98.92 billion for the first quarter, up 8.4% from the same period a year ago due to growth across all three of its business segments. 
As part of a broader turnaround plan, the company is pursuing $2 billion in cost cuts over the next several years. Joyner told CNBC that the company still has to close a few more locations as part of reaching that target. 
But he said CVS is also “focusing on being in the right geography,” noting that the company is still buying stores in the Pacific Northwest because it doesn’t have a big footprint there.

Pressure in insurance unit

All three of CVS’ business segments beat Wall Street’s revenue expectations for the second quarter. But the company’s insurance unit is still under pressure.Aetna and other insurers have grappled with higher-than-expected medical costs over the last year as more Medicare Advantage patients return to hospitals for procedures they delayed during the pandemic.
The insurance unit’s medical benefit ratio – a measure of total medical expenses paid relative to premiums collected – increased to 89.9% from 89.6% a year earlier. A lower ratio typically indicates that a company collected more in premiums than it paid out in benefits, resulting in higher profitability.
The company said that the increase was driven by a charge of $471 million from a so-called premium deficiency reserve, which is related to anticipated losses in the 2025 coverage year. That refers to a liability that an insurer may need to cover if future premiums are not enough to pay for anticipated claims and expenses.
The second-quarter ratio was lower than the 90.6% that analysts were expecting, according to StreetAccount estimates.
The insurance business booked $36.26 billion in revenue during the quarter, up more than 11% from the second quarter of 2024. Analysts expected the unit to take in $34.59 billion for the period, according to estimates from StreetAccount.
CVS’ pharmacy and consumer wellness division booked $33.58 billion in sales for the second quarter, up more than 12% from the same period a year earlier. The company said the increase was partly driven by higher volume at the pharmacy and the front of store, but offset by pharmacy reimbursement pressure.Analysts expected sales of $31.98 billion for the quarter, StreetAccount said.
That unit dispenses prescriptions in CVS’ more than 9,000 retail pharmacies and provides other pharmacy services, such as vaccinations and diagnostic testing.
CVS’ health services segment generated $46.45 billion in revenue for the quarter, up more than 10% compared with the same quarter in 2024. Analysts expected the unit to post $43.37 billion in sales for the period, according to StreetAccount.
That unit includes Caremark, one of the nation’s largest pharmacy benefit managers. Caremark negotiates drug discounts with manufacturers on behalf of insurance plans and creates lists of medications, or formularies, that are covered by insurance and reimburses pharmacies for prescriptions. More

Major League Baseball will play its first-ever game from a professional NASCAR track and its first game in Tennessee.
The MLB Speedway Classic will see the Atlanta Braves face off against the Cincinnati Reds at Bristol Motor Speedway.
Its MLB’s latest effort to help grow the game and attract a younger, more diverse fan base.

MLB will be playing its first ever baseball game at Bristol Motor Speedway in Tennessee.

Major League Baseball is taking America’s pastime to an iconic NASCAR track, and the game is set to top league attendance records.
On Saturday, MLB will play its first-ever game in Tennessee as part of the MLB Speedway Classic, where the Atlanta Braves will face off against the Cincinnati Reds at Bristol Motor Speedway.

It will mark the first time a professional baseball game has ever been played at a professional race car track, and MLB will incorporate NASCAR-themed elements throughout the event.
The event is MLB’s latest effort to help grow the game and attract a younger, more diverse fan base.
“It represents an opportunity for us to really focus in on having as many fans as possible at an event and to create a natural tie-in with another sport that is very much geared towards the same things that we’ve been driving towards the last few years — around speed, and being fast and bold,” Jeremiah Yolkut, MLB’s senior vice president of global events, told CNBC.
Bristol Motor Speedway said the game is set to break the MLB’s all-time regular season single-game attendance record with more than 85,000 tickets sold. The previous record of 84,587 was set in 1954. The MLB said the venue can hold about 90,000 fans in total.

Construction began in May to turn Bristol Motor Speedway into a baseball stadium.
Earl Neikirk/Neikirk Image

MLB said younger fans like the opportunity to see the game in unique settings. Previously, the league has seen success with its Field of Dreams games in Iowa.

Yolkut said the league also thinks there’s crossover between NASCAR and baseball fan bases.
Saturday’s game is four years in the making, with the first conversation dating back to 2021, Yolkut added.
Since then, MLB has conducted feasibility studies; partnered with architects, a professional turf company, their broadcaster Fox and the concessions provider Levy; and signed multiple sponsors, including title sponsor BuildSubmarines.com.
“There was even a building that had to be knocked down in order for us to actually put the baseball field on the track,” Yolkut said.
Beyond the main event, MLB is also planning a full fan experience, including a fan zone and musical performances from Tim McGraw, Pitbull and Jake Owen.
“Fans at home are also going to get some incredible visuals with the aerial shots of the stadium and the guys hitting home runs landing on a NASCAR track,” Yolkut said. “It’s going to be pretty special.”

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Ford Motor reported second-quarter revenue that beat expectations, and reinstated its full-year guidance, which it had withdrawn in May due to tariffs.
The new outlook for the year includes a net $2 billion hit from tariffs.
The company’s adjusted earnings before interest and taxes, or EBIT, include $800 million in adverse tariff-related impacts.

The Ford display is seen at the New York International Auto Show on April 16, 2025.
Danielle DeVries | CNBC

Ford Motor reported second-quarter revenue that beat expectations Wednesday, and reinstated its full-year guidance, which includes an estimated net $2 billion hit from tariffs.
The automaker suspended its full-year guidance in May due to President Donald Trump’s auto tariffs. At that time, Ford predicted a $2.5 billion impact from tariffs this year but said it would be able to offset $1 billion of that total through mitigation efforts.

Its new estimate reflects a total $3 billion hit from tariffs, but the company still estimates it can offset $1 billion of that.
The company’s stock dropped more than 3% during after-hours trading.
Chief Financial Officer Sherry House said on a call with the media that Ford has been in “near-daily communications” with the Trump administration and has been having “constructive conversations.” She said steel and aluminum tariffs have been a focus.
She said Ford has seen price increases in the retail segment of about 1% and said she expects that increase to hold for the rest of the year.
The new guidance includes adjusted earnings before interest and taxes of $6.5 billion to $7.5 billion, lower than the pre-tariff range it issued in February of $7 billion to $8.5 billion. Its adjusted free cash flow is estimated to be $3.5 billion to $4.5 billion, in line with the prior guidance. It also expects capital spending of about $9 billion versus the earlier range of $8 billion to $9 billion. 

“We make about 80% of our vehicles [in the U.S.], but we still import parts from all over the world, and that’s the opportunity to work with the administration. And they are very committed to supporting companies like Ford that have committed to the U.S. manufacturing base,” CEO Jim Farley said on CNBC’s “Closing Bell: Overtime.”
Trump’s 25% tariffs on imported vehicles and many auto parts remain in effect. While the Trump administration has announced some country-specific deals and made changes to its auto-related levies — including reimbursing automakers for some U.S. parts and reducing the “stacking” of tariffs on one another for the industry — automakers are still grappling with the tariff-induced effect on their bottom lines.
Farley said this spring that those changes were helpful, but more actions were needed.
Ford’s estimated tariff impact is notably less than what its crosstown rival General Motors predicts, as Ford has a larger U.S. footprint and imports fewer vehicles than GM. Last week, GM reiterated that it expects $4 billion to $5 billion in tariff impacts in 2025. In the second quarter alone, GM said it saw a $1.1 billion hit.
Here’s how the company performed in the second quarter, compared with average estimates compiled by LSEG:

Earnings per share: 37 cents adjusted. It was not immediately clear if that was comparable to the 33 cents expected.
Automotive revenue: $46.94 billion vs. $43.21 billion expected

For the second quarter, Ford reported total revenue, including its finance business, of $50.2 billion, a 5% increase from $47.81 billion in the second quarter of 2024. Automotive revenue in the year-earlier quarter was $44.81 billion.
Adjusted earnings before interest and taxes came in at $2.14 billion, compared with $2.76 billion a year ago. That total includes $800 million in adverse tariff-related impacts. Wall Street analysts were expecting $1.89 billion, according to StreetAccount.
The automaker reported a net loss of $36 million related to “special charges” from a field service action and expenses from the cancellation of a previously announced electric vehicle program. Its net income for the same period last year was $1.83 billion.
This month, the automaker announced a recall of more than 694,000 crossover SUVs, which Ford said at the time would cost the company about $570 million and would be reflected in its second-quarter results. 
House said on a call with reporters that the $570 million charge is included in those “special charges,” affecting the net loss.
“We are not satisfied with the current level of recalls or the number of vehicles impacted. We are working to reduce the cost of these recalls,” COO Kumar Galhotra said on a call with analysts. 
Ford’s traditional “Blue” operations reported a 3% decline in revenue and EBIT of $661 million, less than the $1.17 billion in the same period in 2024. On the media call, House called its “Pro” commercial business the company’s “growth engine.” That segment saw a revenue increase of 11%. 
Ford’s “Model e” electric vehicle business lost $1.33 billion in the second quarter compared with a loss of $1.15 billion in 2024.
Ford saw strong sales for the second quarter of 2025, totaling 612,095 vehicles, or a 14.2% increase from a year ago. Its electrified vehicle sales totaled 82,886 during the quarter, up 6.6% from 2024. Its pure EVs saw a 31.4% drop, while hybrids were up 23.5%.
Ford executives said during a call with analysts that the company is adapting its EV strategy amid changing policies under the Trump administration. Trump’s new tax-and-spending law is set to end tax credits for new and used EVs after Sept. 30, and the EPA said this week it will seek to repeal greenhouse gas emissions standards on some vehicles.
“We are out of sync, in a good way, with our competitors who now fully loaded with all their EVs, and they’ll have to commit to them,” Farley said on the analyst call.
Ford stock is up about 9% year to date, as of Wednesday’s close.

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