Zoom Video, Peloton Fall Amid Steps to Reopen Economy
(Bloomberg) -- Some of the U.S. stocks that have gained the most amid the pandemic fell in pre-market trading on Friday, as hopes grew that the worst of the economic impact may pass sooner than some had expected.
These names, including in-home entertainment companies and ones that facilitate remote work and eduction, have outperformed in 2020 on the view that the pandemic would lead to higher demand.
Slack Technologies dropped 3.1% before the bell, while Zoom Video Communications fell 3.5%. Both have been high-profile “work from home” plays, although Zoom may also be moving on Verizon Communications Inc. agreeing to buy the videoconference company Blue Jeans Network Inc.
Netflix Inc. was down 1%, although this also comes after a pronounced rally of almost 50% that has taken the video-streaming company to record levels. Earlier, Benchmark Co. started coverage on the stock with a sell rating, arguing that the recent advance “seems excessive.”
Peloton Interactive Inc., the at-home fitness company, dropped 5.6% before the bell.
Amazon.com Inc., which has seen higher demand for both its e-commerce and cloud-computing businesses, was down 0.5%.
Chewy, an online retailer of pet supplies, fell 5.5% in pre-market trading.
©2020 Bloomberg L.P.