'Stay at home' tech stocks fall as some pandemic lockdowns end
- Shares of Netflix, Shopify, Peloton and Zoom, all companies that once benefited from consumers sheltering in place across the country, closed lower Tuesday.
- The moves come despite a strong day for the broader markets.
Stocks that seemed resilient to the Covid-19 pandemic faced pressure Tuesday, as investors rallied around a potential coronavirus vaccine and reopening of the economy.
Shares of Netflix, Shopify, Peloton and Zoom, all companies that once benefited from consumers sheltering in place across the country, closed lower Tuesday. The moves come despite a strong day for the broader markets, which have seen steep lows due to the pandemic.
Netflix stock, which hit a 52-week high last week, closed down 3.4%. E-commerce platform Shopify, which supplies businesses with means to sell products online, dropped nearly 7% after reaching a 52-week high Tuesday. Shares of Peloton, a digital fitness company, dropped nearly 9%. Zoom, the videoconferencing software company that drew massive users, dropped more than 4%.
The idea that society may be reopening 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 coming under control," Bruce Bittles, chief investment strategist at Baird, wrote in a note to clients. "Lockdowns have been relaxed and we have not seen a resurgence in the virus."