Netflix, Amazon, Zoom, Shopify drop over 10%
- 10th November 2020
- Posted by: Hakeem
- Category: Stock
Shares of stay at home stocks dropped sharply at the last trading session amid concerns that individuals would need less of such utilities amid the release of Pfizer’s positive COVID-19 vaccine data.
What we know: Zoom Video was down by over 17% and Amazon and Netflix plunging about 5.1% and 8.6%, respectively. Teladoc Health slid 13.7% and Shopify dropped by 13.6%.
What this means: The record losses are coming on the macro that Pfizer and BioNTech reported that their COVID-19 vaccine candidate showing a 90% efficacy rate in stopping the dangerous viral infections during a late-stage trial.
Stock traders sequel to the release of Pfizer’s COVID-19 vaccine update increased their buying pressure across these popular tech brands that include Amazon, Netflix, Zoom, Shopify in 2020 as COVID-19 pandemic exploded beyond control on, as it reduced social mobility meaning more people stayed indoors.
Before the plunge on Monday, Zoom Video gained 635% year to date. Amazon and Netflix were up 79.2% and 59.1%, respectively, in 2020.
Milan Cutkovic, Market Analyst at Axi, in an explanatory note to Bigwig FX, spoke on the macros that could affect U.S stocks in the coming days,
“The drama is not over yet, and with Trump still sitting in the White House for another two months, wild price swings should not be ruled out.
“However, for market participants, there is little doubt that Biden will be sitting in the Oval Office in January.
With the US presidential election (almost) behind us, the pandemic will come back to the fore. The on-going lockdowns didn´t stop the recovery rally, as investors continue to count on central banks and governments to support the economy with drastic measures.”
Stimulus talks are likely to resume soon in the US and the European Central Bank could announce new measures as early as December.