Stock prices are dropping for Netflix and Peloton, each of which grew considerably during the earlier stages of the pandemic when Americans and others worldwide had to exercise and entertain themselves at home.
Netflix stocks dropped sharply Friday, amid a decline this week in market value for of other pandemic favorites. The declines are at least in part the result of investors forecasting a return to normality as more countries gradually relax COVID-19 restrictions, according to Reuters.
The selloffs for Netflix, a content streaming service, and Peloton, the maker of high-end stationary bikes, began earlier this week after they posted disappointing quarterly earnings.
Analysts think COVID’s new Omicron variant – highly contagious but apparently not as deadly – will not be as economically devastating as the first wave of cases that began roughly two years ago.
“This is a confirmation that the economy is gradually moving towards some sort of normalization,” Andrea Cicione, the head of strategy at TS Lombard, told the wire service.
Peloton shares reportedly lost nearly a quarter of their value overnight Friday erasing nearly $2.5 billion in market value after the company’s CEO said the company was reviewing the size of its workforce and “resetting” production levels.
Peloton, hurt earlier in the pandemic by shipping delays as a result of huge demand, has denied a report this week by CNBC that the company has temporarily halted production of at least some of its bikes and treadmills amid decreased demand.
Netflix shares dropped nearly 20% after it forecasted that new-subscriber growth in the first quarter would be less than half of analysts’ predictions, Reuters also reports.
The company has said its growth has been challenged by a growing and increasingly competitive streaming market.