Stay At Home Stocks Plunge On Vaccine Breakthrough News, Zoom Hit Badly
As ASX stocks climb sharply higher after Pfizer and BioNTech revealed a COVID-19 vaccine breakthrough, shares in stay at home companies such as Netflix, Zoom and PayPal have plummeted.
In Australia travel, education, energy and property companies – firms that have been hit hard during the pandemic – were gaining strongly which tech and entertainment stocks as well as online stores were taking a beating due to the perception that we could be coming out of the COVID-19 epidemic with an immunization fix.
Shares of Zoom closed 17.37% lower at $413.24 per share but were still up 504% over the last year.
Zoom took off this year as the pandemic made its video conferencing platform an everyday necessity for millions of workers and students logging in from home.
Zoom’s other competitors include Cisco WebEx, LogMeIn GoToMeeting, Microsoft Teams, Google G Suite, Avaya and 8×8.
PayPal, whose digital payments business has soared during the pandemic, closed down 8.88% Monday at $184.72 per share.
The company’s stock was still up nearly 80% since November 2019.
Similarly, Netflix Inc. closed 8.59% lower on Monday at $470.50 per share but were still up almost 60% over the last year.
The streaming service saw a huge uptick earlier in the pandemic, when lockdowns meant entertainment was largely restricted to the home. As of late October, Netflix had more than 195 million subscribers.
Analysts are tipping further falls as markets return to normality.