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Stocks Jump on Vaccine Hopes as Pandemic Winners Plummet

This is a syndicated repost courtesy of Statista | Infographics. To view original, click here. Reposted with permission.

Following Pfizer and BioNTech’s announcement that their vaccine candidate was found to be 90 percent effective against COVID-19 in phase 3 trials, optimism quickly spread among investors, sending shares soaring across the globe. Unsurprisingly the bump was particularly noticeable for companies severely affected by the pandemic and the measures taken to contain it.

As the following chart shows, shares of airlines, hotels and other travel companies soared on the vaccine news, with Marriot International, American Airlines and Expedia mere examples of a broader upward trend for the travel and hospitality industry.

Interestingly, the news of vaccine progress also sent some shares tumbling, as few companies were considered “pandemic winners”, with Zoom Video Communications, Peloton and Netflix perhaps the most widely known examples. Zoom, the video conferencing tool that rose to fame amid the first lockdown, saw its share price drop by more than 17 percent on Monday, shaving roughly $25 billion off the company’s market cap.

While yesterday’s announcement was certainly cause for optimism, it needs to be noted that the vaccine has yet to complete phase 3 trials, be approved, produced and distributed. Pfizer and BioNTech project that they could produce up to 50 million vaccine doses by 2020 and up to 1.3 billion doses in 2021.

This chart shows the stock performance of selected companies on November 9, 2020 after Pfizer and BioNTech had announced progress in the development of their COVID-19 vaccine.

Stock market reaction to vaccine news

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

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