Nov 10, 2020 - Sports

Sports stocks surge on vaccine news

Data: Yahoo; Chart: Axios Visuals
Data: Yahoo; Chart: Axios Visuals

Sports stocks surged on Monday after Pfizer announced promising, though early, findings about the effectiveness of its COVID-19 vaccine.

Details: Live event stocks, which got crushed in the spring when sports and concert venues were shut down or left empty, were some of the biggest gainers.

  • Live Nation, which owns Ticketmaster, jumped 23% midday to $68.87 — its largest one-day advance in at least 12 years. It closed at $64.36 (+14.85%).

The other side: Sports-related companies that benefit from people staying inside tumbled.

  • Take-Two Interactive, which publishes the "NBA 2K" video game franchise, sank more than 8%.
  • Collectors Universe, which saw its stock price jump this summer thanks to the trading card boom, plunged 10%.

The state of play: Pfizer says its vaccine was effective in over 90% of uninfected clinical trail patients.

  • Still, "in the beginning, it is clear that there will be more limited distribution," CEO Albert Bourla said on Monday's Axios Re:Cap podcast.
  • "50 million doses is 25 million people globally. Even if half goes to the U.S., that means that it's going to be 12 million people that we can protect in the next 1.5 months."
  • "Very important protection, but still a small part of the population."

The big picture: Investors spent Monday buying into areas like live events and selling off hunker-at-home companies, "but the future is most likely to be a mixture of the old and the new," Axios' Dan Primack writes.

The bottom line: The Pfizer vaccine is a giant and welcome development, but it's not a silver bullet.

ğŸŽ§ Listen: Full Bourla interview (Axios)

Go deeper