According to EvercoreISI tech analyst Mark Mahaney, investors should be watching for opportunities in reopening stocks in the travel and ride-sharing sectors that have been hit hard this past week because of Omicron variant fears.
As societies and cultures manage this epidemic, we have processes in place. If you have a sell-off on the ride-sharing stocks, the travel stocks are probably a buying opportunity. The long-time internet analyst continues to rate Airbnb, Lyft and Uber at Outperform. Mahaney has Inline ratings on Booking Holdings and Expedia shares.
Concerns about the Omicron variant of COVID-19 sweep through markets has battered stock openings of all kinds of stocks in recent sessions.
In the last five sessions, Uber and Lyft have lost 9.9% and 22% of their value, significantly underperforming the broader stock markets. During the same time span, the shares of Expedia and Booking Holdings have dropped 9% and 11%.
The Arca Airline Index, which tracks the stock price performances of major airlines such as Delta and JetBlue, is down close to 10% over the past five trading sessions.
Stocks that were affected by the COVID 19 pandemic took another tumble on Tuesday, as did the wider stock market.
The Dow Jones Industrial Average fell by more than 600 points in early afternoon trading, while the S&P 500 and Nasdaq Composite were deeply in the red. All 30 Dow components were in the red for the session, except Apple.
Mahaney, Like everyone else, we are watching to see how virulent this new COVID-19 strain is, and then whether existing vaccines are effective or not. You can follow Sozzi on Twitter and LinkedIn.