By Emily Bary
Netflix, Etsy, GrubHub among other declining tech names
Shares of technology stocks that saw big benefits from stay-at-home trends due to the pandemic are falling in premarket trading Monday given upbeat vaccine news from Pfizer Inc. and BioNTech SE.
Zoom Video Communications Inc. (ZM) and Peloton Interactive Inc. (PTON) are among the biggest losers in premarket trading Monday, with Zoom's stock down more than 12% and Peloton's off more than 13%. The declines come after Pfizer (PFE) and BioNTech (BNTX) announced that their COVID-19 vaccine candidate was found to be more than 90% effective in preventing COVID-19, which is sparking a strong rally for the broader market amid hope that the vaccine can prompt a return of normal economic activity.
Dow Jones Industrial Average futures are up 1550 points Monday, or 5.5%, while S&P 500 futures are up 151 points, or 4.3%. Nasdaq-100 futures are up 68 points, or 0.6%.
Other tech names struggling in Monday's premarket trading include Etsy Inc. (ETSY), down 10.5%, GrubHub Inc. (GRUB), down 8%, and Netflix Inc. (NFLX) down 5.6%. Etsy has seen strong demand for homemade masks, while GrubHub benefitted from rising interest in takeout orders given limited seating capacity at restaurants. Netflix was able to capitalize on a dearth of other entertainment options as the pandemic forced movie theater closures, production halts, and sports cancellations.
Shares of PayPal Holdings Inc. (PYPL), another big winner during the pandemic, are off 3.8%. The COVID-19 crisis helped drive record performance for PayPal as more people shopped online and looked for digital ways to pay friends, service workers, and charities.
Video game stocks are also down. Shares of Activision Blizzard Inc. (ATVI) are off 3.9%, shares of Electronic Arts Inc. (EA) are off 2%, and shares of Take-Two Interactive Software Inc. (TTWO) are down 4.5%. Like Netflix, the video game industry also benefitted from greater interest in forms of entertainment that could be enjoyed within the home.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
November 09, 2020 09:19 ET (14:19 GMT)
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