The stay-at-home stocks that received the most benefits from COVID-19 and the unintended lockdowns, such as Etsy, Zoom, DocuSign and DoorDash registered their worst performances this week. It’s seems to be on the opposite track that expected as the new COVID-19 variant omicron has resurfaced, which happens to be in the “very high global risk” category as stated by the WHO. The deep selloff is indicating that the investors are betting that the U.S. may start witnessing no shutdowns that have bolstered the streaming TV services and food delivery while making people opt for remote work and chat endlessly with friends and family.
The shares of Zoom registered a slump of about 16.5% for the week, and set a new record for a 52-week low at USD 177.12 on Dec. 3, which is a whopping 69% drop from its record high value past in October 2020. On the same lines, the shares of online marketplace such as Etsy, which helped provide the supply of masks in the pandemic, slipped 20.5% for the week, whereas food delivery giant DoorDash plummeted 16%, Shopify drew 10.5% lower trade and Netflix also plummeted by more than 9.5%.
The tech sector absorbed a plentitude of pain trading in the market this week. The Nasdaq Composite also recorded a fall of about 1.9% on Friday, making it go below by 2.6% for its fifth-worst week of 2021. A disappointing report declared about jobs status across the U.S. to end the week along with rising concerns over omicron variant have led to this downturn. However, some of tech’s blue-chip names were able to withstood the intensity of the market. Apple Inc., HP and Cisco Systems Inc. all registered gains for the week, as investors have started seeking cover for the volatility in the market by switching from riskier stocks to cash-generating companies.
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