Summary List Placement
“Stay-at-home” stocks including Zoom, Etsy, and Peloton tumbled in pre-market trading on Monday after Moderna revealed its COVID-19 vaccine was almost 95% effective in a late-stage trial.
Docusign, Wayfair, Fastly, and other stocks that have at least partly benefited from the pandemic also retreated.
In contrast, airlines, cruise lines, manufacturers, and other “real economy” stocks jumped as investors wagered the vaccine would allow economies to reopen in a matter of months.
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Zoom, Etsy, Peloton, and other “stay-at-home” stocks slumped in pre-market trading on Monday, as positive vaccine news dampened their growth prospects.
Moderna’s announcement that its COVID-19 vaccine proved 94.5% effective in a late-stage trial helped to drive Zoom shares down as much as 7%, Etsy down 6%, and Peloton down 5%.
Netflix, Pinterest, Docusign, Wayfair, Fastly, Chegg, and other companies that have benefited from people spending more time at home during the pandemic also retreated.
Read More: A Wall Street expert says the dramatic shift in stocks last week reeks of investor complacency — and warns that many favorite trades remain vulnerable to losses
Many of those stocks tumbled last week after Pfizer announced its vaccine was more than 90% effective. Now, the prospect of two or more working vaccines promises to accelerate their distribution around the world and speed up a full reopening of the global economy.
As a result, cruise lines, airlines, and other companies that rely on people leaving their homes saw their shares jump in pre-market trading.
The “big four” US airline stocks rose more than 5%. Cruise operators Carnival, Norwegian, and Royal Caribbean gained at least 7%. Boeing, Ford, General Electric, and other “real economy” stocks also climbed.
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Source:: Businessinsider – Finance