Shares of Zoom Video fell sharply Monday as names benefitting from people staying at home due to the coronavirus pandemic lost their appeal following the release of positive coronavirus vaccine data.
Zoom Video traded 16% lower in morning trading. Fellow “stay-at-home” stocks Amazon and Netflix dropped 1.6% and 4.7%, respectively. Teladoc Health slid 7.4% and Shopify declined by 5.5%.
The losses came after Pfizer and BioNTech reported that their coronavirus vaccine candidate showed a 90% efficacy rate in preventing infections during a late-stage trial. Scientists were hoping for a vaccine that was at least 75% effective. White House coronavirus advisor Dr. Anthony Fauci had said a vaccine that is 50% or 60% effective would be acceptable.
“I think we can see light at the end of the tunnel,” Pfizer Chairman and CEO Dr. Albert Bourla told CNBC’s Meg Tirrell on “Squawk Box.”
Traders had piled into stocks such as Zoom, Amazon, Netflix, Teladoc and Shopify this year as the pandemic raged on and kept most people from leaving their homes.
Before Monday, Zoom Video skyrocketed 635% year to date. Amazon and Netflix were up 79.2% and 59.1%, respectively, in 2020. Teladoc was up 146.2% this year and Shopify popped 162.8%.
However, investors on Monday appeared to be rotating away from those high-flying names and into companies that would benefit from the economy reopening.
Bank of America popped about 8% in the premarket. JPMorgan Chase jumped 7.2%. Cruise operators Carnival Corp. and Norwegian Cruise line were both up more than 20% along with Royal Caribbean. American Airlines, meanwhile, surged more than 22%.
Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.