Shares in technology companies in “stay at home” sectors such as e-commerce and teleconferencing have taken a drubbing over the past two days in the wake of Pfizer Inc.'s vaccine trial announcement.
While much of the market surged on the optimistic news about a COVID-19 vaccine, technology stocks in Canada and the United States fell hard on Monday and extended their losses on Tuesday. Shares of Shopify Inc., for instance, have fallen 15 per cent in the past two days, while shares of TSX newcomer Nuvei Corp. are down 8.9 per cent. The technology-heavy Nasdaq Composite Index is down 2.8 per cent so far this week.
Investors are suddenly trying to gauge how well quintessential COVID-era technologies – teleconferencing, online shopping, distance learning – will perform once physical-distancing measures end. Money is rotating out of high-growth tech stocks and toward cyclical industries that are set to benefit from broader economic …