On Monday morning, shares of Zoom Video fell sharply as names benefitting from people staying at home due to the coronavirus pandemic lost their appeal following the release of positive coronavirus vaccine data.
Zoom Video traded more than 15% lower in the premarket. Fellow “stay-at-home” stocks Amazon and Netflix dropped 3.4% and 5.4%, respectively. Teladoc Health slid 6.4% and Shopify declined by 5.1%.
The losses came after Pfizer and BioNTech reported their coronavirus vaccine candidate showed a 90% efficacy rate in preventing infections during a late-stage trial.
Traders swooped into stocks such as Zoom, Amazon, Netflix, Teladoc, and Shopify as the pandemic raged and kept most people from leaving their homes.
Zoom Video soared 635% year to date. Amazon and Netflix are up 79.2% and 59.1%, respectively, in 2020. Teladoc is up 146.2% this year and Shopify 162.8%.
Monday, Investors appeared to be rotating away from those names, into companies that would benefit from the economy reopening.
Bank of America jumped 8% in the premarket. JPMorgan Chase 7.2%. Cruise operators Carnival and Norwegian Cruise line were both up more than 20% along with Royal Caribbean. American Airlines surged more than 22%.
