Guns and ammo stocks surge to eclipse ‘stay-at-home’ darlings

‘Stay-at-home’ stocks like Netflix and Zoom thrived in the first half of 2020. But as Black Lives Matter protests swept across the US in June, a very different kind of company surged: guns and ammo stocks.

Not only have US-listed guns and ammo stocks outperformed the world’s biggest tech companies this year, but they’ve even eclipsed companies that benefitted most from the world’s transition into remote work and education.

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In fact, when the S&P 500 (SPX) index, a popular benchmark for the wider US market, fell by more than 2% last Friday to erase all of its June gains, tech giants and stay-at-home stocks followed suit. But almost simultaneously, guns and ammo stocks rose 2%.

Guns and Ammo vs. Stay-at-Home

To compare stay-at-home stocks against guns and ammo, Hard Fork built two new indexes: the Guns and Ammo 7 (GAX) and the Stay-at-Home 21 (SHX), having first debuted the GAX earlier this month.

Aside from those two, we used the NYSE’s FANG+ index to chart US tech giants like Amazon and Apple, the NDX as a benchmark for the wider tech sector, and the SPX to gauge the overall US market.