It may be time to bail on “stay at home” stocks.
With economies just starting to reopen, high-flying “stay at home” stocks are beginning to pullback, offering potential opportunity on the short side.
Look at video game stocks for example.
At one point, video game stocks rocketed higher, as people hunkered down at home. Even the World Health Organization encouraged playing games during the pandemic. “We’re at a crucial moment in defining outcomes of this pandemic. Games industry companies have a global audience – we encourage all to #PlayApartTogether. More physical distancing + other measures will help to flatten the curve + save lives,” tweeted Ray Chambers, U.S. ambassador to WHO.
With “stay at home” orders being lifted, stocks like Activision Blizzard (ATVI) have begun to pull back. In fact, since topping out around $76, ATVI has pulled back to $68 and falling.
Take-Two Interactive (TTWO) fell from around $150 to $129.92.
Or, we can look at teleconferencing stocks that popped with more people working from home. Zoom Video Communications (ZM) for example just fell from about $180 to $156. Slack Technologies (WORK) is giving out around $33. RingCentral (RNG) fell from $290 to $244.
Netflix (NFLX) is pulling back, too as people venture back out. Over the last few days, NFLX has fallen from $460 to a recent low of $408.55. Even Amazon.com (AMZN) has fallen from $2,500 to a recent price of $2,368.
Again, with “stay at home” orders being lifted, and economies reopening, it may be time to bail on related stocks.