My top stay-at-home stock is Zoom (ZM), and that stock took a major hit today because of two things: 1) President-elect Joe Biden is already putting together a pandemic team, promising to truly fight covid-19, and 2) there is news of a vaccine that will be tested.
Of course, any stay-at-home stocks took a major hit today. ZM was down -86.87 a share. TDOC was down -28.16 a share. SHOP was down a whopping -140.79.
I have a feeling this downturn is temporary, mainly because: 1) This pandemic isn’t over yet, and the number of new cases and deaths keep increasing exponentially with each new day… 2) the holiday season is quickly approaching and I can see that families are wanting to get together, regardless… 3) and the economic impact of this pandemic will still be felt into 2021, with Biden/Harris not able to actually enact mandates and legislation until after the inauguration!
I also don’t think schools, colleges and universities will suddenly turn around and go back to physical in-person teaching, not just yet.
In other news the DOW was up over +1,700 points in pre-market and was strong until it fell to +834.57. Was this a positive reaction to the announcement that Biden/Harris had won? I think there was more to this surge than just an announcement of a covid vaccine, and that stay-at-home stocks were in jeopardy. I mean, the biggest news of the weekend was Biden/Harris winning, so that has to be taken into account.
Meanwhile, I’m still holding long to my positions of stay-at-home stocks for now. I think there will be a rebound starting even tomorrow.