- Zoom increased to 20% on Monday after encouraging data from Pfizer’s COVID-19 vaccine trials dragged home stocks lower.
- The pharmaceutical company announced Monday morning that their experimental coronavirus vaccine was found to be more than 90% effective in preventing COVID-19 in test participants.
- This news spiked global stocks, particularly those most affected by the pandemic such as airlines and hotels.
- By contrast, casual names including Zoom, DocuSign and Peloton fell as investors bet on vaccines that would end the global health crisis.
- View live Zoom transactions here.
Zoom Video Communications fell as much as 20% on Monday as news of Pfizer̵7;s encouraging COVID-19 vaccine fueled the sale of so-called home stockpiles.
The US pharmaceutical giant announced Monday morning that their experimental coronavirus vaccine, created in collaboration with BioNTech, was found to be more than 90% effective in preventing COVID-19 in test participants. Pfizer said it will apply to the US Food and Drug Administration for an emergency license, which will allow for faster vaccine rollout.
News raises hope that a viable coronavirus vaccine could end the global health crisis. US stocks rose sharply. The industries most hit by the virus – including airlines, hotels and cruises – have recovered in the early stages of the transaction.
In contrast, companies that thrive on declining home orders. DocuSign, Peloton and Wayfair joined Zoom and others in the sell-off as investors stepped up bets on safe reopens.
Read more: Morgan Stanley said buy 10 shares on its ‘buy’ list, which have dominated the broader market this year.
Zoom was one of the market’s biggest winners of the year as its video conferencing software gained popularity along with remote routing. Shares of the company closed at $ 500.11 on Friday, up nearly 650% so far.
Monday’s slump put shares to their lowest level since late September.
The residency group’s plunge is part of a transaction pattern seen after other aggressive vaccine updates. Promising data from tests of Gilead, Moderna and AstraZeneca pulled telecom stocks earlier this year. Stockpiles tend to increase as vaccine candidates fail in trials or the number of viral infections increases.
With the world facing a resurgence of coronavirus infections and a number of advanced economies enacting new locking measures, Pfizer’s announcement gave Zoom stock a strong momentum.
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The US economy exceeded the forecast, adding 638,000 jobs in October when the unemployment rate dropped to 6.9%.