Biggest covid companies record $1.5tn market value loss According to a recent report by the Financial Times, the biggest corporate earners of the COVID-19 era are now facing losses of $1.5tn. Companies like Peloton and Ring Central, which...
This story originally appeared on Due
According to a recent report by the Financial Times, the biggest corporate earners of the COVID-19 era are now facing losses of $1.5tn.
Companies like Peloton and Ring Central, which have been pillars of home fitness and remote working during that difficult time for all Americans, have recorded losses after their exponential and untenable growth.
Big companies see market cap slide
These massive companies played a crucial role in meeting the national and global needs during the COVID-19 pandemic. They were the supply that met the demand of employers needing remote working solutions, the fitness enthusiasts striving to stay healthy, and the logistics providers making deliveries a little easier. Their success is a reflection of our collective resilience and adaptability.
The Financial Times combined statistics from a Bloomberg benchmark report and the data recorded by S&P Global, one of the leading lights in economic analysis. The contrast is startling but not without a huge slice of the expected market trajectory.
Companies like Zoom, the remote video and hosting provider, have seen an exponential rise in share value of 768%. No company can consistently maintain that margin of growth in the face of the world waking up again. According to Bloomberg data compared by the FT, this loss relates to a $77bn decline since the end of 2020.
Employers, for example, are no longer solely dependent on the remote working environment to deliver their services, so the need placed on Zoom and its contemporaries has lessened. As we reported, the jobs report by the U.S. Department of Labor showed signs of American employment needs stabilizing to pre-pandemic levels.
Steven Blitz, chief US economist at TS Lombard, told the FT, “Some companies probably thought that (share increase) shock was going to be permanent. Now they’re getting a painful bounce back from that.”
Barry McCarthy, the CEO of Peleton, who had kept the fitness levels of Americans at a dizzying height of profit and growth for the company, has decided to step down. Four hundred workers will follow McCarthy out the door on the back of around $49bn in market capitalization losses.
Peloton, Tesla, Zoom, and Ring Central all contributed to the U.S. economy and labor market staying stable during a difficult time, but that time has now ended.
Image: Ideogram.
The post Biggest covid companies record $1.5tn market value loss appeared first on Due.
