Pandemic market darlings Netflix and Peloton each saw about a fifth of their market value wiped out on Thursday after both said business was slowing, a sign, say analysts, of growing market jitters about the business prospects of such companies.
and Docusign whose shares soared in 2020, and in some cases 2021 as well, as people around the world were forced to stay at home in the face of the new coronavirus epidemic.
However, thanks to vaccine roll outs and the spread of the less severe Omicron strain of COVID-19, life is returning to something similar to normal in many countries, leaving companies like Netflix and Peloton struggling to sustain high sales figures. According to data from S3 Partners, short-sellers doubled their profits by betting against Peloton in 2021, the third best returning U.S. short.
"With a return to the office and travel lanes opening, darlings of the WFH thematic are reflecting the growing reality that the world is moving slowly but with certainty towards a new normalcy," said Justin Tang, head of Asian research at United First Partners in Singapore. Direxion's Work from Home ETF has fallen more than 9% in first three weeks of the year, compared to a 6% drop in the fall of the broader U.S. stock marketIn Europe, lockdown winners are also going through a rough patch with the fears related the Omicron wave waning adding to the stress rising bond yields are putting on growth and tech stocks.
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