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These stocks were warmed by the pandemic. Now they are cooling down.

The pandemic created a new universe of stock market stars. Some are now returning to Earth.

The emergence of Covid-19 changed the way people work, shop, and dine, helping video conferencing star companies like Zoom Video Communications. Inc.

and home workout provider Peloton Interactive Inc.

go up. But as the cuts eased and vaccines became available, certain consumer behaviors were violated by pandemic rules, posing new threats to businesses as they progressed in 2020 and 2021.

Last week, the Netflix giant went live streaming Inc.

and online car salesman Carvana Co.

they indicated that their businesses were slowing down, coinciding with others that reduced their growth targets. Some investors say the decline in stocks to stay at home indicates that the hottest pandemic trade may have gone too far and too fast.

Here’s a look at the 10 favorite pandemic-era ducks:

Netflix Inc.

Netflix investors are changing the channel. The streaming service had a new high in its number of subscribers and share prices during the pandemic, as viewers were able to watch movies and TV shows while they were stuck inside the house. But the company reported the loss of its first quarterly subscribers in more than a decade on Tuesday. He said he expects to lose another 2 million this quarter as it faces competition from rival streaming services and password-sharing among customers. Shares of Netflix fell 35% on Wednesday, the second-worst fall in a day, removing $ 54 billion in market value. That day, billionaire investor William Ackman said his fund sold its shares on Netflix at a loss.

Peloton Interactive Inc.

The peloton is no longer riding high. The manufacturer of home fitness equipment was very successful during the pandemic, as closed gyms and locks pushed the high demand for its sports bikes. But the company struggled as people returned abroad, reducing revenue forecasts and reducing staff by 20%. Earlier this year, activist investor Blackwells Capital LLC pushed Peloton’s management to fire its CEO and make a sale. The company, which once boasted a market value of more than $ 50 billion, is now worth less than $ 7 billion.

Etsy Inc.

Will Etsy make a post-pandemic recovery? The business grew for the online market as more consumers made purchases from home in the early days of the pandemic. But the return of some buyers to brick and mortar stores has led to a slowdown in e-commerce due to the availability of vaccines. Etsy saw growth in active buyers begin to slow in the first quarter of 2021. Now, while the company is ready to face competitors like Amazon.com. Inc.,

he resists the resistance of some of his salesmen. More than 20,000 vendors signed a petition to protest higher commission rates, and Etsy said it will help fund investment in marketing and expand sales support services.

Carvana Co.

Carvana is losing some of its acceleration. The online used car dealership reported the first quarterly drop in sales on Wednesday and said it would raise capital with the intention of selling $ 2 billion in common stock and preferred stock. The pandemic of the past has spread rapidly over the past two years, with the quarterly sales volume from the spring of 2020 roughly doubling as more consumers shop online. But rising interest rates, falling used car prices, and inflation-ridden customers turned Carvana’s growth plans upside down, while logistical delays led the company to reduce consumer vehicle purchases and the limited inventory available on its website. Carvana’s shares have fallen about 18% in the last three trading days and nearly 80% since they peaked last summer.

Chlorine Co.

Clorox is no longer cleansed. Sales rose in the wake of the pandemic, as Americans struggled to keep up with demand for cleaning products. But the disinfection madness subsided, as did the company’s demand for handkerchiefs and sprays, as Covid’s restrictions eased and vaccines proliferated. The company said it expects a rise in prices this year to improve margins and profitability. Clorox shares have fallen by about 17% since April 2021.

Modern Inc.

It reached its peak in the global race to develop the Covid-19 vaccine. Its plan is the second most widely used in the United States, after the one developed by Pfizer Inc.

and BioNTech SE.

But Modern is facing an increasingly crowded market today, and along with investor concern, vaccine sales will be strong for as long as it lasts. The company hopes that people will need another dose of booster in the fall to maintain protection, especially from the Omicron variant. Shares rose in 2021 to a record high in August, but have since fallen by 71%. The stock is still above the previous pandemic level.

PayPal Holdings Inc.

PayPal is losing some of its charge. Migration to online shopping during the pandemic increased its transaction volumes and profits, sending its market value not only to JPMorgan Chase & Co. but above all U.S. banks. The sentiment began to subside as the blockages eased and store sales recovered. In February, PayPal cut its earnings forecast for 2022 and rejected an ambitious growth strategy it set out last year. Shares fell 72% since the July peak.

Domino’s Pizza Inc.

Investors are no longer as hungry for Domino’s Pizza. A flood of shipping and take-away orders increased the shares of the pizza chain when restaurants closed the dining hall during a pandemic. But U.S. store sales fell for the first time in a decade in the fourth quarter, marred by restaurant reopening and ongoing staffing problems. The company has allowed customers who receive orders in stores to claim a $ 3 tip due to a shortage of delivery drivers. Shares fell 33% from a December 2021 record.

Zoom Video Communications Inc.

Zoom is not connecting like it did in 2020. Thanks to the pandemic, Zoom became popular, reaching its highest level of equity in October 2020. But higher vaccination rates and a return to work have raised doubts about the future rate. Growing in a competitive video conferencing call market. In the last quarter, the company’s sales growth slowed to 21%, the lowest profit recorded. Zoom is also struggling to expand after buying nearly $ 15 billion from the Five9 contact center company. Inc.

it was blocked in September by shareholder sellers. Shares have returned to pre-pandemic levels, about 82% of their record.

Campbell soup Co.

Campbell Soup shares are cooling. U.S. soup sales rose in early 2020 as consumers sought more comfortable food. But sales fell in the last quarter as more consumers enjoyed their meals. The 150-year-old company faces inflationary pressures and high costs related to components, packaging, logistics and labor. It aims to increase the attractiveness of young customers by promoting the freshness of products, including simplified ingredients and modernized packaging. Shares fell 13% from the March 2020 highs.

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These stocks were warmed by the pandemic. Now they are cooling down.

Source link These stocks were warmed by the pandemic. Now they are cooling down.

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