When Covid-19 first efected the global markets last winter, some stocks, like Zoom, Etsy and Peloton, quickly became lockdown darlings. In recent months, though, the scenario has begun to flip, with some initial winners now trading below their 2020 peaks and stocks from industries that lagged behind last years, like airlines, live entertainment, mall operators and brick-and-mortar retailers now trending upward.
Zoom, a hot stay-at-home stock, currently costs barely $373.61, down from $588.84 last year, and Peloton is down 20% over the past month.
On the other hand, Delta has jumped more than 25% in the same span amid good vaccine news in the U.S. and new Covid-19 cases dropping. In contrast, Live Nation Entertainment, the largest concert promoter globally, has seen its shares rise about 80% since the end of October and is currently trading near record highs. Last year also saw digital-only retailers like Etsy have huge run-ups in share price, and investors are still betting that they’ll continue to outperform in 2021. Some analysts, however, also believe that retailers with heavy brick-and-mortar presences, like Urban Outfitters and Kohls, will have a chance to regain some market share they lost to online retailers as shoppers return to physical stores. Both of those companies have seen their shares rise more than 20% this year. In commercial real estate, REITs that own data centres, like Digital Realty Trust, had a hot 2020 as demand for computer power soared. Now, investors are transitioning into real-estate funds with retail exposure like Simon Property Group, the largest mall owner in the U.S. and have seen its share price rise more than 80% since the end of October.
Generaly, the major U.S. stock indexes declined this week, with the Dow Jones Industrial Average dropping 1.8%, the S&P 500 down 2.45% and the Nasdaq falling 4.9%.