Zoom and different “stay-at-home” shares are being put down within the constructive vaccine information
Eric Yuan, CEO of Zoom, speaks ahead of the Nasdaq opening ceremony on April 18, 2019 in New York.
I have Betancur | Getty Images
Zoom Video shares fell sharply on Monday morning as names benefiting from people staying home due to the coronavirus pandemic lost appeal after positive coronavirus vaccine data was released.
Zoom Video traded more than 15% lower in the pre-market. The other “stay-at-home” stocks, Amazon and Netflix, fell 3.4% and 5.4%, respectively. Teladoc Health was down 6.4% and Shopify was down 5.1%.
Those losses came after Pfizer and BioNTech reported that their late-stage coronavirus vaccine candidate had a 90% effectiveness rate 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.
Zoom Video is up 635% since the start of the year. Amazon and Netflix rose 79.2% and 59.1%, respectively, in 2020. Teladoc is up 146.2% this year and Shopify is up 162.8%.
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 gained 8% in the pre-market. JPMorgan Chase was up 7.2%. The cruise company Carnival Corp. and Norwegian Cruise Line together with Royal Caribbean grew by more than 20%. American Airlines, meanwhile, gained more than 22%.
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