Nov 10, 2020 11:50:00

What is the reason for the sudden drop in stock prices related to 'stay homes' such as Zoom?

On November 9, 2020, a new coronavirus vaccine jointly developed by

Pfizer , a pharmaceutical company headquartered in the United States, and Biontech, a German pharmaceutical venture, 'provisionally confirmed a preventive effect of over 90% in clinical trials. The news was reported. While positive news about the fight against the new coronavirus has been greeted with joy, various effects are appearing on the stock market, such as the decline in stock prices of 'stay home related stocks' such as Zoom. I will.

Zoom stock plunges on Pfizer vaccine trial news --CNN
https://edition.cnn.com/2020/11/09/investing/covid-vaccine-stocks-winners-losers/index.html

Zoom and other'stay-at-home' stocks got crushed on the positive vaccine news
https://www.cnbc.com/2020/11/09/zoom-and-other-stay-at-home-stocks-are-getting-crushed-on-the-positive-vaccine-news.html

The pandemic of the new coronavirus has had a major impact on economies around the world, but some companies have made great strides. In particular, the pandemic was a big boost for companies that provide business tools for teleworkers and

'stay home-related' companies that provide communication tools, entertainment, and online shopping services for people who spend their time at home. was.

In addition to online shopping platformAmazon and video distribution service Netflix , video conferencing tool provider Zoom will increase 169% year-on-year revenue in the first quarter of 2020 to about $ 328.2 million (about 35,689,400,000 yen) We have achieved dramatic growth by taking advantage of the pandemic.

Zoom announces first quarter revenue of over 35.6 billion yen, significantly increased from the previous year due to the influence of the new coronavirus --GIGAZINE

Meanwhile, on November 9, the new coronavirus vaccine developed by Pfizer and Biontech was announced as 'provisionally confirmed to have a preventive effect of over 90% in clinical trials.' The papers and basic data on the results of the clinical trial were not published at the time of writing the article, but the data of the clinical trial was analyzed by an independent external committee.

Pfizer announces that 'new corona vaccine with more than 90% preventive effect' has been developed --GIGAZINE

Pfizer will continue clinical trials and will apply for an emergency use permit from the US Food and Drug Administration (FDA) once safety data are available. Japan also plans to import Pfizer vaccine, and it has basically agreed that the Japanese side will receive supply for 60 million people by the end of June 2021 .

The news that the development of the new corona virus vaccine has progressed was welcomed with great joy, with Pfizer and Biontech shares rising nearly 10% each, as well as other vaccine developers such as Moderna and Johnson & Johnson . Stock prices have also risen.

In addition, the stock price of AMC Theaters , a movie theater chain, has jumped to more than 50%, and the stock price of concert promoter Live Nation has also risen by nearly 20% , probably because the development of vaccines has strengthened the hope that the previous daily life will be restored. In addition, stock prices of retail, cruise, airline, hotel, leisure related companies, etc. are all rising.

On the other hand, Pfizer's announcement hit the stock prices of stay-home companies that made a leap during the pandemic. Amazon's share price fell 5.1%, Netflix's share price fell 8.6%, and telemedicine service provider Teladoc Health 's share price fell 13.7%. In addition, it is reported that the impact of positive news about the progress of vaccine development, such as Zoom's stock price falling by 17.4%, was divided by companies.