- Three popular stay-at-home stocks surged Monday as coronavirus cases climb in the US and around the world.
- Netflix,Peloton, and Zoom stocks all hit record highs in intraday trading Monday as investors watched growing COVID-19 case numbers.
- At the same time, the so-called reopening stocks including airlines, cruise lines, and retailers slumped.
- Read more on Business Insider.
Three of the top stay-at-home stocks are again surging as the number of coronavirus cases climbs, increasing investor fears of a second shutdown that could decimate the US and global economy.
Shares of Netflix,Peloton, and Zoom Video Communications all gained Monday, hitting fresh record highs as investors weighed mounting coronavirus cases against data showing a US economic recovery. The stocks have outperformed the broader market this year as investors see them performing well amid a recession and coronavirus-induced lockdowns that keep consumers at home.
An uptick in new cases of COVID-19 is fuelling the most recent leg of the stay-at-home stock rally. The US reported more than 30,000 coronavirus new cases on Friday and Saturday, the highest levels since early May, according to data from Johns Hopkins. On Sunday, the World Health Organisation reported that new COVID-19 cases hit a single-day record.
Netflix rose 2.6% to $US465.72 per share, while Zoom gained nearly 5% to roughly $US255. Shares of Peloton jumped nearly 8% to about $US55 per share after Stifel analyst Scott Devitt on Monday boosted his price target on the company to $US62 from $US55, now the highest on Wall Street for the stock.
“Shifting consumer behaviour, gym closures / social contact avoidance, and steady demand from word-of-mouth have the potential to fuel multiple quarters of holiday-like demand in our view,” Devitt wrote in a Monday note. His new price target implies that Peloton could surge another 13% from recent highs.
On the flip side, stocks tied to the US economy reopening slumped on Monday. American Airlines fell nearly 7%, Carnival Corp. slid more than 5%, and Norwegian Cruise Lines lost 6%. The group of stocks has been ticking lower in recent weeks as investor concern over growing cases of coronavirus intensifies.