- Positive developments in the race to a COVID-19 vaccine sent shares of stay-at-home stocks like Peloton plummeting on Monday.
- Peloton plummeted as much as 25% at intraday lows.
- The at-home fitness company saw a spike in sales due to the COVID-19 pandemic as consumers searched for exercise alternatives amid the stay-at-home orders.
- Watch Peloton trade live here.
Peloton shares fell by as much as 25% on Monday following drugmaker Pfizer’s announcement that its trial COVID-19 vaccine had a 90% efficacy rate in preventing infection.
A number of so-called stay-at-home stocks fell. A COVID-19 vaccine could hit the bottom line of companies like Peloton if consumers can safely return to public exercise spaces. Meanwhile, the likes of airlines and crude oil rallied sharply on the prospect that travel could pick up.
Video: Dow futures surge 1,500 points on Pfizer’s COVID-19 vaccine news (Fox Business)
Meanwhile, Pfizer surged 13% at intraday highs on Monday.
The exercise equipment company thrived during the coronavirus pandemic, as lockdowns and restrictions on exercise outside the home drove people to its premium bike and treadmill products after gyms were forced to close. The surge was realized in its tripled quarterly results in early November, when Peloton reported a fiscal first-quarter sales growth of 232%, surpassing both internal and Wall Street expectations.
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