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What happened
Ecommerce stocks were hit hard on Monday as the market reacted to a groundbreaking development in the race for a COVID-19 vaccine.
At 2:30 PM EST, shares of Amazon.com (NASDAQ: AMZN), Square (NYSE: SQ), PayPal (NASDAQ: PYPL), is Shopify (NYSE: STORE) they fell by 3.3%, 6.1%, 7.1% and 10.5% respectively.
So
Online retail and digital payments were some of the best-performing stocks of 2020 as investors sought shelter from the COVID storm. E-commerce businesses – many of which saw their sales rise during the coronavirus pandemic – have provided a welcome haven. Prior to today, the shares of Amazon, PayPal, Shopify and Square were up 79%, 87%, 163% and 217% respectively since the end of 2019.
Investors sold the e-commerce company shares on Monday. Image source: Getty Images.
However, after Pfizer is BioNTechFollowing Monday’s blockbuster announcement that clinical trial results suggest their coronavirus vaccine candidate, BNT162b, may be more than 90% effective at preventing COVID-19, many investors have apparently decided to take profits. from e-commerce actions.
Now what
After incredible progress this year, it is understandable that some people want to make some gains. But it’s important to note that the migration of retail sales to online channels – and with it, the shift from cash to digital transactions – won’t stop after the COVID-19 crisis subsides. These are powerful long-term trends that should continue to drive the growth of Amazon, Square, PayPal, and Shopify for many years to come. Investors, therefore, would likely be better served by keeping the shares of these e-commerce leaders.
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