Online service stocks dip as COVID-19 vaccine nears

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The COVID-19 pandemic accelerated the shift to online commerce and collaborative tools that had already begun, as many companies permitted employees to work from home, supercharging the stock prices of many digital companies like Slack Technologies and Zoom Video.

Although that shift will likely continue after the pandemic finally abates, it appears that some of those pandemic-charged stock prices are beginning to return to earth.

Other sectors, including exercise equipment and online retail, have gotten a boost from the coronavirus-related shutdown and continued wariness of many to return to the office, gym or shopping mall. But shares have dipped recently.Peloton Interactive, a maker of upscale home exercise equipment, recently traded at $99.85 a share, down a cumulative 28.55% from a 52-week high of $139.75.

The recent stock movement plays out against Moderna's announcement that its coronavirus vaccine was 94.5% effective. Earlier, Pfizer said testing showed its vaccine to be more than 90% effective against the disease. If the vaccines are widely available, and if most people get the shots, civil society may return to pre-pandemic activities, boosting travel, hotels, restaurants and entertainment, including professional and college sports.

Other sectors benefited. United Airlines rose 6.30% in early trading Monday. Southwest was up 3.81%. Delta gained 4.43%. Carnival, an operator of cruise ships, added 11.75% in early trading Monday. Hilton Worldwide gained 2.10%.

 

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