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However, rapid progress on the coronavirus vaccination front has led to much subdued performance by these stocks so far this year. That’s because the demand for solutions offered by these companies is gradually declining with vaccinated people spending less time in their homes. According to data collected by Bloomberg, more than 797 million doses of vaccines have been administered around the world, at a rate of roughly 18 million doses per day. The United States alone has so far administered around 190 million doses, vaccinating almost 29.6% of its entire population.
Investors’ positive sentiment regarding the steps back toward normal driven by the vaccinations is causing a pullback in remote-working stocks, as evidenced by Direxion Work From Home ETF’s (WFH) 6.2% loss over the past two months. Another major reason for this pullback is the rapid rise in Treasury yields. Equity markets typically do not respond favorably to rising Treasury yields. Hence, we think stay-at-home companies Zoom Video Communications, Inc. (ZM), Teladoc Health, Inc. (TDOC), Fastly, Inc. (FSLY), and Peloton Interactive, Inc. (PTON) are now best avoided.
