Public companies that saw their stock market values surge amid pandemic-inspired, stay-at-home orders fell hard Monday after promising results from Pfizer and BioNTech on a coronavirus vaccine were released.
High flyers from Amazon and Netflix to Peloton Interactive and Zoom Video Communications lost from five to 25 percent of their market value on a day that saw the rest of the U.S. stock market soar on the Pfizer vaccine news. The Dow jumped 1,513 points, or 5.3 percent, in early trading Monday, reaching a record high of 29,836, while the S&P 500-stock index rose more than three percent and the tech-heavy Nasdaq added less than 1 percent.
Stocks overall were in rally mode on the U.S. election result when Pfizer said that data show its vaccine shot may be 90 percent effective at preventing COVID-19, indicating the drug manufacturer is on track this month to file an emergency-use application with U.S. regulators.
While Wall Street cheered the preliminary findings, they also weighed heavily on shares of some of COVID-19's biggest stock winners on investor thinking that an eventual vaccine would likely mean people will be spending less time exercising from home or engaged in video chats with their homebound work colleagues.
"We're making the assumption that everything is going to be back to normal tomorrow and taking back some of the reward that was meted out to the stay-at-home names," Art Hogan, chief market strategist at National Securities, told CBS MoneyWatch.
But investors should be wary of making emotional decisions based on one piece of news, Hogan added. "My guess is Netflix will remain an important part of our lives — I don't think Amazon is going out of business because we have a vaccine."
Zoom plummeted as much as 20 percent — its biggest drop on record — and Peloton Interactive cratered 25 percent, also a record slump for the stationary cycling company. Amazon tumbled as much as six percent and Netflix declined more than nine percent as investors discarded shares that surged amid lockdowns.
Meal-kit maker HelloFresh plunged 20 percent and shares of disinfectant maker Clorox were lately down more than five percent.
Others that cater to online shoppers like Etsy and Wayfair also fell, both by more than 10 percent, while Overstock.com declined 22 percent and Pinterest dropped nearly nine percent.
The moves marked a rotation out of shares that had gained as the ongoing pandemic ravaged the country. Zoom, for instance, was up 635 percent for the year before Monday's opening bell, while Amazon had been ahead 79 percent and Netflix 59 percent.
First published on November 9, 2020 / 1:04 PM
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