Tags: stay at home | trade | virus | cases | surge

Stay-at-Home Trade Comes Roaring Back as Virus Cases Surge

Stay-at-Home Trade Comes Roaring Back as Virus Cases Surge
(Luca Santilli/Dreamstime)

Monday, 22 June 2020 01:57 PM

Stocks that cater to consumers staying at home rallied Monday amid some concern that spiking new coronavirus cases in parts of the U.S. and abroad could shutter businesses and whipsaw spending.

Two of the largest beneficiaries of people opting to stay indoors -- Netflix Inc. and Zoom Video Communications Inc. -- touched record highs. Shares of streaming platform Roku Inc. climbed as much as 4.9% to the highest level in more than a month, while Twilio Inc., Dropbox Inc., and Spotify Inc. all outperformed the broader market.

Exercise-at-home stock Peloton Interactive Inc. is also trading at a record after Stifel analyst Scott Devitt boosted his price target to $62 from $55. Wall Street estimates for the company’s fiscal first quarter, ending Sept. 30, may be conservative as “shifting consumer behavior, gym closures/social contact avoidance, and steady demand from word-of-mouth” continue, he wrote in the research note.

Meanwhile, the rising number of coronavirus cases led to pain for many travel and leisure stocks that had been seeing a bounce from recent lows. The S&P 500 Airlines Index fell as much as 3.4%, dragged lower by American Airlines Group Inc. Cruise liners including Carnival Corp. also tumbled.

The S&P 500 Casinos & Gaming Index dropped to the lowest level since late May as Wynn Resorts Ltd., Las Vegas Sands Corp., and MGM Resorts International gave back more than 3% each.

© Copyright 2020 Bloomberg News. All rights reserved.


   
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Stocks that cater to consumers staying at home rallied Monday amid some concern that spiking new coronavirus cases in parts of the U.S. and abroad could shutter businesses and whipsaw spending.
stay at home, trade, virus, cases, surge
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2020-57-22
Monday, 22 June 2020 01:57 PM
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