{"id":1687151,"date":"2022-10-12T18:51:40","date_gmt":"2022-10-12T22:51:40","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1687151"},"modified":"2022-10-12T18:51:54","modified_gmt":"2022-10-12T22:51:54","slug":"saga-of-wall-streets-pandemic-darlings-ends-with-tears","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/saga-of-wall-streets-pandemic-darlings-ends-with-tears\/","title":{"rendered":"Saga of Wall Street\u2019s pandemic darlings ends with tears"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsaga-of-wall-streets-pandemic-darlings-ends-with-tears%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1687151&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Sin\u00e9ad Carew<\/p>\n<p>(Reuters) \u2013     Think about something novel you started doing two-and-a-half years ago to make life easier during the COVID lockdown and chances today are that there is a related story about a stock market casualty.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\">\n<\/div>\n<p>Add investor worries about soaring inflation and an economic slowdown that tipped Wall Street into a bear market this year, and you will find a bleak picture for the companies that became hugely popular during the pandemic. <\/p>\n<p>Connected stationary bike maker Peloton Interactive told employees last week that its fourth round of job cuts this year is a bid to save the company. Its problems put a spotlight on other pandemic hot-shots like Zoom Video Communications, Nautilus Inc, DocuSign Inc and DoorDash Inc.<\/p>\n<p>Growth investors pushed Peloton stock to a $171.09 record in early 2021. Demand was so strong for its bikes that restless consumers had to wait out long delivery delays. But Peloton shares are now down 95% from their peak, closing at $8.53 on Wednesday. The S&#038;P 500 by comparison is down about 25% from its record high in January this year.<\/p>\n<p>Others bought exercize gear from Nautilus during the pandemic, sending its stock up to $31.30 in early 2021. It last traded at $1.65.<\/p>\n<p>Zoom became synonymous with online meetings as many people  worked remotely and even turned to video conferences for social gatherings. But Zoom\u2019s shares were last at $75.22 versus its $588.84 peak, reached in October 2020.<\/p>\n<p>Other stay-at-home favorites were online retailer Amazon.com and food delivery service DoorDash. People also flocked to consumer-friendly brokers like Robinhood Markets while stuck at home with no sports to bet on. But after scaling $85 in August 2021, Robinhood last traded at $10.66.<\/p>\n<p>\u201cThese are companies with good enough ideas that they get enough funding. They catch a wave like COVID, their use explodes,\u201d said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh. But once that growth slows, investors lose interest.<\/p>\n<p>\u201cThey kind of used up all the air in their universe, and they have nowhere to grow. So, while people might still be using the Peloton, not enough people are buying the Peloton,\u201d said Forrest.<\/p>\n<p>Daniel Morgan, portfolio manager at Synovus Trust in Atlanta, Georgia, says Peloton may appear cheap, but he is wary because it is not profitable. Its price-to-sales multiple has fallen to 0.8, on a trailing 4-quarter basis, from an average multiple of 6.6 since it went public in Sept. 2019, Morgan said.<\/p>\n<p>Wall Street expects Peloton to report an adjusted loss per share of $2.07 for its fiscal year ending in June compared with a loss of $7.69 in its fiscal year 2022, according to Refinitiv.<\/p>\n<p>Zoom has been making money and its valuation also appears cheap at 35 times earnings per share versus an average multiple of 135 since its April 2019 debut, Morgan said. <\/p>\n<p>Still, he is concerned about its profit decline. Zoom\u2019s adjusted earnings per share is expected to fall 27% for its fiscal year ending in January versus 2022 growth of 55.5%, according to Refinitiv.<\/p>\n<p>Morgan also pointed to a growth slowdown for DoorDash and retail giant Amazon.com as they are also being hurt by soaring inflation and economic uncertainty.   <\/p>\n<p>\u201cEach company is going to have to see how their particular business model can execute in a normalized environment,\u201d he said.<\/p>\n<p>Carol Schleif, deputy chief investment officer at BMO\u2019s family office in Minneapolis, cautioned against investing in companies that look cheap and have loyal customers. It\u2019s all about management, balance sheets and projected income, she said. <\/p>\n<p>While one possible outcome for pandemic favorites with slowing growth could be a buyout by a larger company, Schleif is wary of making this bet.   <\/p>\n<p>\u201cBuying a stock because you think it\u2019s going to get taken out, that\u2019s a risk. I wouldn\u2019t be willing to do it with any money I wasn\u2019t willing to lose,\u201d she said. \u201cIt\u2019s not really investing. It\u2019s more opportunistic.<\/p>\n<p> (Reporting By Sin\u00e9ad Carew, Lance Tupper and Chuck Mikolajczak; Editing by Alden Bentley and Richard Pullin)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/saga-of-wall-streets\/attachment\/file-photo-a-trader-stands-beneath-a-screen-on-the-3\/\"><img decoding=\"async\" src=\"https:\/\/c3.oann.com\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2022binary_LYNXMPEI9B14U-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI9B14U-BASEIMAGE\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/saga-of-wall-streets\/attachment\/file-photo-peloton-in-new-york-city\/\"><img decoding=\"async\" src=\"https:\/\/c3.oann.com\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2022binary_LYNXMPEI9B14V-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI9B14V-BASEIMAGE\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/saga-of-wall-streets\/attachment\/file-photo-the-spread-of-the-coronavirus-disease-covid-19-in\/\"><img decoding=\"async\" src=\"https:\/\/c3.oann.com\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2022binary_LYNXMPEI9B151-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI9B151-BASEIMAGE\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/saga-of-wall-streets\/attachment\/file-photo-a-doordash-delivery-bag-is-seen-in-brooklyn-3\/\"><img decoding=\"async\" src=\"https:\/\/c3.oann.com\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2022binary_LYNXMPEI9B14Y-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI9B14Y-BASEIMAGE\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/saga-of-wall-streets\/attachment\/file-photo-an-amazon-delivery-worker-pulls-a-delivery-cart\/\"><img decoding=\"async\" src=\"https:\/\/c3.oann.com\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2022binary_LYNXMPEI9B14Z-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI9B14Z-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Sin\u00e9ad Carew (Reuters) \u2013 Think about something novel you started doing two-and-a-half years ago to make life easier during the COVID lockdown and chances today are that there is<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1687151","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1687151","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1687151"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1687151\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1687151"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1687151"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1687151"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}