Zoom and different “stay-at-home” shares are being put down within the optimistic vaccine information
Zoom Video stocks fell sharply on Monday as names that benefited from people staying home due to the coronavirus pandemic lost their appeal after positive coronavirus vaccine data was released.
Zoom Video was down 16% in morning trading. The other “stay-at-home” stocks, Amazon and Netflix, fell 1.6% and 4.7%, respectively. Teladoc Health was down 7.4% and Shopify was down 5.5%.
The losses came after Pfizer and BioNTech reported that their coronavirus vaccine candidate had a late-stage effectiveness rate of 90% in preventing infection. The scientists were hoping for a vaccine that was at least 75% effective. White House coronavirus advisor Dr. Anthony Fauci had said a vaccine with either 50% or 60% effectiveness would be acceptable.
“I think we can see light at the end of the tunnel,” said Dr. Albert Bourla, Chairman and CEO of Pfizer, told CNBC’s Meg Tirrell about Squawk Box.
Traders had amassed in stocks like Zoom, Amazon, Netflix, Teladoc, and Shopify this year as the pandemic raged and prevented most people from leaving their homes.
Before Monday, Zoom Video was up 635% year-to-date. Amazon and Netflix rose 79.2% and 59.1%, respectively, in 2020. Teladoc is up 146.2% and Shopify is up 162.8% that year.
On Monday, however, investors seemed to be turning from those lofty names to companies that would benefit from the reopening of the economy.
Bank of America was up 11%. JPMorgan Chase jumped 9.7%. The cruise company Carnival Corp. and Norwegian Cruise Line gained 36.8% and 26.1% respectively. Royal Caribbean was up 31%. American Airlines, meanwhile, gained more than 15%.
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