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Zoom Video, Peloton Fall Amid Steps to Reopen Economy

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.

The Trump administration issued guidelines for states to relax stay-at-home orders, while coronavirus patients reportedly showed improvement from a Gilead Sciences drug. U.S. stock-index futures surged, while so-called “stay-at-home” stocks dropped.

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.