Zoom and other stay-at-home tech stocks rise on new Covid variant fears

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Shares of Zoom were up more than 10% before markets opened on Friday morning as a new Covid variant raised concerns in South Africa. Other stocks that have benefited from stay-at-home trends during the pandemic were also up.

Peloton stock popped more than 8% before markets opened while Etsy, Shopify, Roblox, Netflix and Roku also showed small gains. Meanwhile, shares of companies that have benefitted from the reopening are down.

Expedia was off by more than 7% this morning while Lyft, Airbnb and Uber stock were all down by more than 5% before markets opened.

It’s a reversal from earlier in the month, after travel companies like Delta, Airbnb, Expedia pointed to clear signs of recovery in recent earnings reports and as stay-at-home stocks like Peloton, Zoom and Netflix declined amid indications that the Covid-19 pandemic end might come sooner than expected.

Zoom could erase losses from earlier in the week if the momentum holds. Shares of Zoom closed down 14.7% on Tuesday after the company warned investors of a revenue slowdown and Wall Street firms cut price targets on the stock.

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