‘Stay at home’ tech stocks fall as some pandemic lockdowns end

Cari Gundee rides her Peloton exercise bike at her home on April 06, 2020 in San Anselmo, California.

Ezra Shaw | Getty Images

Actions that appeared resilient to the Covid-19 pandemic faced pressure on Tuesday as investors rallied around a potential coronavirus vaccine and the reopening of the economy.

The actions of Netflix, Shopify, Peloton and Zoom, all the companies that have already taken advantage of the shelters in place across the country, closed lower on Tuesday. The movements occur despite a strong day for the wider markets, which have experienced significant lows due to the pandemic.

Netflix stock, which peaked at 52 weeks last week, closed down 3.4%. The Shopify e-commerce platform, which provides businesses with the means to sell products online, fell nearly 7% after hitting a 52-week high on Tuesday. The shares of Peloton, a digital fitness company, fell by almost 9%. Zoom, the video conferencing software company that drew massive users, fell more than 4%.

The idea that the company could reopen sooner rather than later could mean that consumers will return to some of their old habits, spending less time at home.

“The virus appears to be under control,” wrote Bruce Bittles, chief investment strategist at Baird, in a note to clients. “The blockages have been eased and we have not seen a resurgence of the virus.”

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