In 2020 the health crisis has boosted the technology, health and “stay at home” sectors. Here are some trends you may have missed about stocks.
The stock market year 2020 faced an unprecedented economic disaster-related to lockdowns as part of the still-raging coronavirus pandemic. It was a pretty tumultuous year in all aspects, making a stock market a real rollercoaster for investors. The health crisis has boosted the technology, health and so-called “stay at home” sectors. Let’s see some trends you may have missed when it comes to the financial markets.
1. The booming of ZOOM stocks
Without a doubt, Zoom Video Communications Inc has been one of the biggest beneficiaries of the global COVID-19 pandemic. Millions of workers and students have flocked to its video conferencing service as governments around the world imposed restrictions and lockdowns. The earnings report reflected this boom, validating investors’ extremely bullish stance on the stock.
2. Three BioTechs well positioned in the race for a vaccine
Three biotech stocks were facing massive stock market activity linked to the hope that these companies could provide a vaccine to fight the rapidly spreading virus. These were Gilead, Moderna and Regeneron. Drugmaker Gilead Sciences Inc was among the companies developing treatments targeting the coronavirus. The company was studying the efficiency of its antiviral drug remdesivir in China. Thanks to some promising results of testing the stocks soared. But not for a long time since the drug soon turned out to be inefficient.
3. Most investors continue to favour large-cap tech stocks
Most investors continue to favour large-cap tech stocks over any other transaction in the current uncertain times. These tech giants’ products and services, from cloud computing to social media and online shopping, have become more active since the outbreak of the global health crisis. This advantage is unlikely to diminish anytime soon. Therefore, buying hi-tech stocks at this moment is a good decision.
4. Moderna stocks top performance
To say that Moderna Inc was the top-performing COVID-19 vaccine action last year would be a laughable understatement. AstraZeneca PLC shares gained 0.25% for the period; Pfizer Inc added 3.1% in value. But Moderna surpassed them all, with an increase of 687%.
5. The CAC 40 price in 2020
While the US equity markets set new all-time highs in 2020, European equities were still in a phase of erasing the stock market shock of the covid. CAC 40 stocks began a process of catching up with Wall Street from the fourth quarter of last year, with the strong rebound in European market cycles slaughtered last March. This handover from US equities to the Euro Zone should be confirmed in 2021, with the gradual decline expected month after month on the health curves. It makes it possible to project a rise in the direction of 6000 points this year and thus erase the effects of the vertical fall of last March.
6. In September 2020 Tesla lost almost a quarter of its value
In September 2020, in the latest downward movement, Tesla lost almost a quarter of its value from the August 31 record. Even with a correction of this magnitude, the stock is still up 356% for the year, the strongest performance among large-cap tech companies. But the reality of investing in Tesla stocks is that they can fall as fast as they rise.
7. The strong rebound in Walt Disney Company shares in November 2020
The strong rebound in Walt Disney Company (NYSE: DIS) shares in November 2020 from the March trough led to the conclusion that investors have already started to anticipate a return to normal in theme parks and theatres.
After the stock fell more than 40% due to the coronavirus outbreak, Disney shares jumped nearly 61% at yesterday’s close, to $ 137.82. This gradual and strong rebound makes it clear that investors do not see permanent damage to Disney’s cash-producing businesses after the pandemic deprived the company of much of its revenue.