
<p>Stay-at-home stocks, a pandemic-market favorite, are getting battered Monday after pharmaceutical giant Pfizer announced promising vaccine results that could reopen and restore a troubled economy, but might negatively affect companies like Zoom and Peloton that have benefited from the stay-at-home environment—at least temporarily. </p>



<h4 class="wp-block-heading">KEY FACTS</h4>



<p>Tech-heavy Nasdaq, which hosts stay-at-home staples like Zoom, Netflix and Amazon, is lagging the broader market on Monday, is up just 1% while the Dow Jones and S&amp;P 500 are up about 4% and 3%, respectively, as industries left reeling by the pandemic celebrate news regarding the possibility of a return to normalcy.</p>



<p>Among the day&#8217;s biggest stock losers is pandemic phenomenon Zoom, which late last month&nbsp;<a href="https://www.forbes.com/sites/sergeiklebnikov/2020/10/29/zoom-is-now-worth-more-than-exxonmobil-and-founder-eric-yuans-net-worth-has-nearly-doubled-in-three-months/">surpassed ExxonMobil in market cap</a>; shares are down 15% on Monday but are still up more than 500% this year.Peloton Interactive–which is gearing up for what could easily be its best holiday season yet–is also tanking about 15%, pushing its year-to-date gains down to about 260%.</p>



<p>Netflix, meanwhile, is down about 5%–a slightly smaller decline for a firm that&#8217;s still up nearly 50% this year.</p>



<p>Though not as hard hit as others on Monday, cloud stocks like Twilio, Slack and Datadog are also falling–about 3%, 1.5% and 1%, respectively–despite the broader market gains.</p>



<p>Stocks like Zoom and Netflix should be &#8220;long-term winners, [but they&#8217;ll] lose in the short term, as their valuations ran ahead of actual earnings,&#8221; says James McDonald, the CEO of Los Angeles-based Hercules Investments, adding that such firms have &#8220;likely already seen peak levels of adoption and revenue&#8221; in the short term.</p>



<h4 class="wp-block-heading">CRUCIAL QUOTE&nbsp;</h4>



<p>&#8220;The enormous moves witnessed in some areas of the market are certainly due to a fundamental reassessment after the vaccine news, but [they] also reflect a huge positioning adjustment as investors try and dial back tech exposures and&#8230; buy names closer to the epicenter of the pandemic,&#8221; says Vital Media Knowledge Founder Adam Crisafulli. &#8220;Even though tech has been in the midst of a consolidation phase since the start of September, the group is still very owned and should this pro-cyclical rotation continue (which seems likely), momentum will face steep headwinds in the near-term.&#8221;</p>



<h4 class="wp-block-heading">CHIEF CRITIC</h4>



<p>Experts aren&#8217;t totally convinced Monday&#8217;s stock gains–and losses–will be long-lived. &#8220;I suspect the markets, which are already in a bullish mood due to the incoming Biden administration, are overthinking the positive vaccine news,&#8221; says Nigel Green, the CEO of $10 billion advisory deVere Group. “There’s a long road ahead still,&#8221; he adds, noting that investors will have more clarity on the implications of Monday&#8217;s announcement by the third week of November, when Pfizer&nbsp;<a href="https://www.pfizer.com/news/press-release/press-release-detail/pfizer-and-biontech-announce-vaccine-candidate-against" target="_blank" rel="noreferrer noopener">says it plans</a>&nbsp;to submit its vaccine candidate to the FDA for approval.</p>



<h4 class="wp-block-heading">KEY BACKGROUND</h4>



<p>Technology stocks have massively outperformed the broader market this year, with the Nasdaq composite up nearly 30% since January while the S&amp;P 500 and Dow Jones are up about 11% and 2%, respectively. Monday marked a reversal of fortune between firms doing well during the pandemic and those that have been hardest hit. While stay-at-home stocks sink, shares of banks, energy firms, cruiseliners and movie-theater operators are surging.&nbsp;</p>



<h4 class="wp-block-heading">TANGENT</h4>



<p>Shares of Clorox, a pandemic breakout stock, are also slumping–down 7%–on Wednesday, though they&#8217;re still up 34% for the year.&nbsp;</p>



<h4 class="wp-block-heading">FURTHER READING</h4>



<p><a href="https://www.forbes.com/sites/jonathanponciano/2020/11/09/stocks-surge-worldwide-to-new-all-time-highs-after-pfizer-says-covid-19-vaccine-candidate-90-effective/">Stocks Surge Worldwide To New All-Time Highs After Pfizer Says Covid-19 Vaccine Candidate 90% Effective</a>&nbsp;<em>(Forbes)</em></p>



<p><a href="https://www.forbes.com/sites/roberthart/2020/11/09/pfizer-says-covid-19-vaccine-is-90-effective-although-trials-are-ongoing/">Pfizer Says Covid-19 Vaccine Is 90% Effective, Although Trials Are Ongoing</a>&nbsp;<em>(Forbes)</em></p>



<p><a href="https://www.forbes.com/sites/jonathanponciano/2020/11/06/billionaire-leon-cooperman-knows-for-sure-election-results-will-be-challengedheres-his-outlook-on-stocks-and-the-economy/">Billionaire Leon Cooperman Knows ‘For Sure’ Election Results Will Be Challenged—Here’s His Outlook On Stocks And The Economy</a>&nbsp;<em>(Forbes)</em></p>



<p><a href="https://www.forbes.com/sites/jonathanponciano/2020/11/06/stocks-end-week-with-biggest-post-election-day-rally-in-over-a-century/">Stocks End Week With Biggest Post-Election Day Rally In Over A Century</a><em> (Forbes)</em></p>



<p><em>-By Jonathan Ponciano, Forbes Staff</em></p>


Tag: peloton

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Zoom, Peloton, Netflix: Stay-At-Home Stocks Are Getting Smoked By Pfizer’s Latest Vaccine Prospects