Zoom and different shares staying at residence have been put down within the constructive vaccine information
Zoom Video stocks fell sharply on Monday as names that benefited from people staying home due to the coronavirus pandemic lost their appeal after positive coronavirus vaccine data was released.
Zoom video closed 17.4% lower. The other “stay-at-home” stocks, Amazon and Netflix, fell 5.1% and 8.6%, respectively. Teladoc Health was down 13.7% and Shopify was down 13.6%.
The losses came after Pfizer and BioNTech reported that their coronavirus vaccine candidate had a late-stage effectiveness rate of 90% 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.
Before Monday, Zoom Video was up 635% year-to-date. Amazon and Netflix rose 79.2% and 59.1%, respectively, in 2020. Teladoc is up 146.2% and Shopify is up 162.8% that year.
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 was up 14.2%. JPMorgan Chase jumped 13.5%. The cruise company Carnival Corp. and Norwegian Cruise Line gained 39.3% and 26.8% respectively. Royal Caribbean closed 28.8% higher. American Airlines, meanwhile, gained more than 15%.
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