Daily Management Review

Will Pfizer’s Positive Vaccine Development Hopes Bring Back Old Business Perception?


Has the winning year for ‘corporate stay-at-homes’ come to an end?

The promise of a possible vaccine for the COVID-19 may offer a “possible way out” of the pandemic, but it certainly halted the surge in the shares of “stay-at-home corporate winners” such as Zoom, Netflix among others.
Nevertheless, now one has to wait and observe if the positive data reports of Pfizer’s COVID-19 vaccine trials will have a lasting affect on the above mentioned companies’ shares or not. While, an analyst from Commerzbank, Christoph Rieger said:
“Even if a vaccine proves effective, inoculating a large enough part of the population will take time and leave these segments prone to economic lockdown fallout”.
Moreover, the change in perception of doing business which was introduced due to the pandemic are unlikely to “be reversed”. In the words of an analyst from MKM Partners, Rohit Kulkarni:
“Investors are now focused on how the ‘new normal’ looks ... and how sustainable are the tailwinds for such companies as the direct impact of the pandemic on consumer behavior starts to diminish”.
Peloton’s “at-home fitness system” helped the company to see a “274% jump in quarterly profit” while Zoom saw a more than “460%” rise in its shares this year. For Amazon and Microsoft, there was a “substantial boost” whereby opening avenues for potential “new investment”. E-sports and video gaming sector had also benefitted during the lockdown period. However, following the vaccine related announcement of Pfizer, they experienced lower turnover.
According to the chief executive of Roundhill Investments, Will Hershey:
“The market is likely discounting a deceleration of growth for the sector in 2021”.
“However, I believe that the growth in gaming due to the pandemic likely increased the trajectory of gaming adoption for years to come.”