Investing

Coronavirus Spread Hurts Market Darlings the Hardest (Update)

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With the markets seeing a major sell-off on Monday, the fears of a coronavirus spreading into a pandemic beyond China (South Korea, Italy, Turkey) is becoming more real. We are also now getting to see some of the expected “election volatility” come into play after having been considered a “market risk” rather than a market event until this point.

Please note that this article has been updated to reflect more recent moves.

24/7 Wall St. has tracked some of the top so-called market darlings that have done so well in 2019 and at the start of 2020, and these shares were all paying a big price with big selling pressure on Monday morning. We will cover the moves later in the day as a refresh to this story.

Shortly after the opening bell, the Dow Jones industrials were down over 800 points at 28.175 and the S&P 500 was down about 89 points at 3,249.25. The tech-heavy Nasdaq, where most of the “darlings” are traded, was down 286 points (3%) at 9,290 on last look. UPDATE: 1:25 p.m.: Dow, −1,046; S&P 500, −119; Nasdaq, −385.

Here is how the companies in focus have been trading. (Updated at 1:25 Eastern Time)

Advanced Micro Devices Inc. (NASDAQ: AMD) closed at $53.28 on Friday, down from a recent high of $59.27, and it was down over 8.6% at $48.70 after Monday’s opening bell. AMD was down 8.4% at $48.82 on 59 million shares at 1:25.

Amazon.com Inc. (NASDAQ: AMZN) closed at $2,095.97 on Friday, with a recent all-time high of $2,185.95, and its shares were down almost 35 at $2,037.00 on Monday after the opening bell. Amazon was down 4.7%, or −$100+, at $1,995.60 and the 4.5 million shares that had traded was already above a full day’s average volume.

Apple Inc. (NASDAQ: AAPL) closed at $313.05 on Friday, after a recent all-time high of $327.85, and was last seen down 5.5% at $295.35. Update: Apple was down 4.3% at $299.65 on more than 36 million shares.

Enphase Energy Inc. (NASDAQ: ENPH) closed at $59.09 on Friday, after hitting a post-earnings high of $59.15, but its shares were down almost 6% at $55.60 Monday morning. Update: Enphase Energy was still down 4.2% at $56.60 but trading volume was not above average.

Microsoft Corp. (NASDAQ: MSFT) closed at $178.59 Friday, versus a recent all-time high of $190.70, and its shares were last seen down 4.8% at $170.00. Update: Update: Microsoft was down 3.8% at $171.75 in mid-afternoon trading.

Nvidia Corp. (NASDAQ: NVDA) closed at $294.07 on Friday with a new high of $316.32, but the shares were down over 6% at $275.50 on Monday morning. Update: Shares were down 6.8% at $274.10 in mid-afternoon trading.

Shopify Inc. (NYSE: SHOP) was down 5.2% at $493.65 on Monday morning, after closing at $520.66 on Friday. Last week’s high was $593.89. Update: Shopify was last seen down 6.17% (−$32.12) at $488.54 and the 2.4 million shares traded was already above an average day.

Tesla Inc. (NASDAQ: TSLA) closed at $901.00 on Friday, after hitting an all-time high of $968.99, and its shares were down almost 5% at $856.70 on Monday after the opening bell. Update: Tesla shares were last seen down 7.2% at $835.80 in mid-afternoon trading.


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