Stay-at-Home Stocks Stumble After Moderna Vaccine Report

Moderna reported that its coronavirus vaccine hit a 94.5% efficacy rate, hitting so-called stay-at-home stocks like Zoom, Peloton, DocuSign and Slack.
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Stocks that have benefited from workers and consumers staying at home dipped on Monday after Moderna  (MRNA) - Get Report reported that its coronavirus vaccine hit a 94.5% efficacy rate.

That topped the 90% rate reported by Pfizer  (PFE) - Get Report last week for its vaccine. A successful vaccine, of course, would mean no more need to stay at home for work and play.

Among the stocks hit:

Zoom Video Communications  (ZM) - Get Report, the videoconference provider, fell 3.6% to $389;

Peloton  (PTON) - Get Report, the connected-fitness company, slid 2.5% to $98.27;

DocuSign  (DOCU) - Get Report, the document-signing company, eased 0.9% to $203.77, and,

Slack Technologies  (WORK) - Get Report, the messaging and collaboration company, dipped 0.6% to $25.60.

To be sure, all these companies are far above where they started the year. Each showing a triple-digit percentage surge, except Slack. Of those stocks, Zoom has appreciated the most year-to-date: by nearly a factor of five through Friday.

Morningstar analyst Dan Romanoff likes Zoom -- but not the share price. He puts fair value at $153.

“Zoom crushed its second-quarter results and once again substantially raised full-year revenue guidance,” he noted in a Sept. 1 commentary after Zoom released the numbers.

“The video-first communications platform company continues to penetrate the market by leveraging its cloud-based solutions’ ease of use and innovative features.”

Romanoff sees “a long runway for growth as the company gains traction with its Zoom Phones solutions as well, and we are impressed by management’s ability to overdeliver in terms of both growth and margins.”

But, “we still cannot support the current share price within our discounted-cash-flow model,” he said.