- “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.
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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.