Tuesday’s Headlines: Pandemic-Boosted Stocks Crash After Vaccine News
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Eventbrite (EB) +32.2%
Wynn Resorts (WYNN) +27.7%
Nordstrom (JWN) +25.9%
Tripadvisor (TRIP) +21.7%
Moving Down ⬇️
Nautilus (NLS) -21.4%
2U (TWOU) -20.5%
Peloton Interactive (PTON) -20.3%
Zoom Communications (ZM) -17.4%
Etsy (ETSY) -17.1%
1. Positive vaccine news has punished pandemic-fueled stocks across the board. Video conferencing giant Zoom Communications (ZM) plunged 20% on Monday. Stocks were soaring after Joe Biden was elected U.S. President, but Wall Street’s excitement was kicked into overdrive as Pfizer and BioNTech announced a 90% effective vaccine candidate for COVID-19. Whilst shares of cruise companies and airlines are rising, home exercising company Peloton is off 13%. Online retailers Etsy and Wayfair are also seeing double-digit drops, even Amazon stock fell 5% yesterday. Investors may be trading too aggressively on news that will take months to have a lasting effect on the economy. Read more here.
2. Red or black? Casino operator Wynn Resorts (WYNN) shares jumped over 27% as hopes of a COVID-19 vaccine were announced on Monday. The Nevada-based casino saw its highest closing price since June 9th. For casinos and hotels, a vaccine is paramount in making travel and entertainment a normal part of life again. A former Wynn Resort Executive stated “it’s huge news for everyone, but for Vegas it’s big because we’re built around crowds.” Even when with the vaccine news, it's unclear when the casino will recover. However, when a sense of normalcy does return, pent-up demand will show up big. Read the full story here.
3. How about some gaming while we wait for news from Pfizer? Microsoft (MSFT) launched two new gaming console models today, which have already sold out in preorders. The Xbox Series X — described as the “world's most powerful console” — will retail for $499.99 and the Xbox Series S will sell for $299.99. To capture a pandemic-fueled gaming demand, the new Xbox will compete with Sony’s PlayStation 5, which is releasing this week. Other gaming providers, Activision Blizzard (ATVI), Roku (ROKU), and Take-Two Interactive (TTWO) stock plunged yesterday as markets believe when the pandemic is over people will play less video games. Read the full story here.
Some more earnings from last night:
It is the year to get fit, and Nautilus (NLS) proved it by beating earnings and revenue expectations in its Q3 financials. The fitness product company announced (EPS) of $0.87 per share on revenue of $155.39 million, versus $0.37 estimated. Check out the Press Release here.
The gunfire detection system company smashed its earnings expectations in its Q3 report. ShotSpotter posted revenue of $11.35 million with EPS of $0.05, versus $0.03 estimated. The company has topped consensus revenue three times in the last four quarters, shares are up 27% since the start of 2020. Read the full Press Release here.
There are 3 companies on the MyWallSt shortlist that will report earnings today.
Hain Celestial Group (HAIN)
Get this week’s full calendar here.