Shares of stay at home stocks dropped sharply at the last trading session amid concerns that individuals would need less of such utilities amid the release of Pfizer’s positive COVID-19 vaccine data.
- Zoom Video was down by over 17%.
- Amazon and Netflix plunged about 5.1% and 8.6% respectively.
- Teladoc Health down 13.7% and Shopify dropped by 13.6%.
READ: Apple, Amazon, Netflix drop over 4%, investors Jittery on COVID-19
What this means
The record losses are coming on the macro that Pfizer and BioNTech reported their COVID-19 vaccine candidate showing a 90% efficacy rate in stopping the dangerous viral infections during a late-stage trial.
Stock traders sequel to the release of Pfizer’s COVID-19 vaccine update, increased their buying pressure across these popular tech brands that include Amazon, Netflix, Zoom, and Shopify in 2020, as COVID-19 pandemic exploded beyond control and reduced social mobility, meaning more people stayed indoors.
- Before the plunge on Monday, Zoom Video gained 635% YTD.
- Amazon and Netflix were up 79.2% and 59.1% respectively in 2020.
READ: COVID-19: AfDB postpones Africa Investment Forum to 2021
What they are saying
Milan Cutkovic, Market Analyst at Axi, in an explanatory note to Nairametrics, spoke on the macros that could affect U.S stocks in the coming days,
“The drama is not over yet, and with Trump still sitting in the White House for another two months, wild price swings should not be ruled out.
READ: Netflix adds 10.1 million paid users in Q2 2020, yet stock plunges more than 9%
“However, for market participants, there is little doubt that Biden will be sitting in the Oval Office in January. With the US presidential election (almost) behind us, the pandemic will come back to the fore. The on-going lockdowns didn’t stop the recovery rally, as investors continue to count on central banks and governments to support the economy with drastic measures.”
Stimulus talks are likely to resume soon in the US and the European Central Bank could announce new measures as early as December.
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