Moderna Stock Skyrocketed Due to Successful Vaccine Trials

Moderna stated on Monday that its coronavirus vaccine candidate is 94.5% effective in trials. Furthermore, it can last longer in refrigeration than previously predicted. Moderna shares gained $6.39, jumping by more than 7%. Overall, the Moderna stock soared by 47% this year. Positive news caused the Dow Jones to skyrocket along with shares in airlines, hotels, cruise lines, restaurants, and other companies which offer in-person travel and entertainment.

The S&P 500 climbed up by 1.2%. The Dow Jones also reached a new record, rallying by 1.6% and ending at 29,950. Meanwhile, the Nasdaq composite gained 0.8%.

On the other hand, “stay at home” stocks that have rallied during the pandemic, plunged low due to the successful vaccine news. Slack, Zoom, CrowdStrike, and Peloton, are tech companies that have all reached record highs during the pandemic, each plummeted down in pre-market trading on Monday.

Video-conferencing platform Zoom (ZM) tumbled down by 7%, while connected-fitness brand Peloton (PTON) dropped down by as much as 5%. Furthermore, the cybersecurity firm CrowdStrike (CRWD) plunged by 4%, and work chat app Slack (WORK) lowered by 2% before the market opened on Monday.

One week ago, Pfizer announced the efficacy of its coronavirus vaccine candidate. The market reacted the same way then as well, but more severely. Peloton collapsed by 25%, while Logitech (LOGI) dropped down by 19% and Zoom declined by 17%. In fact, even Roku (ROKU) and Netflix (NFLX) slid.

Today, Zoom tumbled down by 4%, and CrowdStrike fell by 1%. However, Peloton was flat, and Slack was trading on bullish territory.

The success of Moderna’s vaccine gives hope for the end of the pandemic

At-home work tools may prove useful even after the pandemic

The news of multiple COVID-19 vaccines bolsters optimism about global economic recovery and a return to normalcy. Restaurants, hotels, and airlines are looking forward to a working vaccine as their businesses depend on the renewed activities. However, companies like Zoom and Peloton will suffer from the end of the pandemic.

The bikes have become so popular that Peloton has wait times of more than two months. The stock’s Q4 sales rallied by 172%, giving the company its first profitable quarter. But with the pandemic’s end, the new Peloton converts may stop using their bikes and return to gyms.

However, for software names like Zoom, CrowdStrike, and Slack, the results may be less damaging. Most likely, companies that have embraced them will continue to use them in the future as well.

Zoom and Peloton had jumped high even before COVID-19 pandemic. Remote work and at-home connected fitness were also growing trends before the lockdowns. There is a good chance that they’ll continue to spread even when there’s a vaccine available.