Why Stay-at-Home Stocks Were Falling Today

Shares of stay-at-home stocks, including Zoom Video Communications (NASDAQ: ZM), Peloton Interactive (NASDAQ: PTON), and Teladoc Health (NYSE: TDOC), were pulling back after the new $900 billion coronavirus relief package went into effect last night, with President Trump signing the bill after several days of delays.

The deal includes direct payments of $600 to Americans; enhanced unemployment benefits; aid for small businesses; funds directed to transportation, education, food stamps, and rent assistance; as well as money for vaccine distribution.

Stay-at-home stocks like the trio above have generally benefited from news showing the pandemic is getting worse or longer, and they have fallen on news portending its end. For example, all three of these stocks, which include the leaders in videoconferencing software, connected fitness, and telehealth, dived when Pfizer and BioNTech reported successful phase 3 vaccine trials on Nov. 9. 

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Source Fool.com