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Is the pandemic stock bubble bursting?

by WarriorForum.com Administrator
6 replies
A new article on Martech.org asks has the thrill gone from investing in businesses associated with lockdown, remote working and virtual entertainment?



MarTech's latest daily brief features daily insights, news, tips, and essential bits of wisdom for today's digital marketer. If you would like to read this before the rest of the internet does, sign up via the original article to get it delivered to your inbox daily.

So, is the pandemic stock bubble really bursting? Editorial Director at Martech.org, Kim Davis, says it's common knowledge that, while some sectors of the economy struggled mightily during the COVID-related lockdowns of 2020 and 2021, any business that provided support for stay-at-home consumers and remote workers struggled too -- but the struggle was to keep up with demand. Despite reports that Omicron has yet to plateau nationwide, it's possible that degrees of returns to normality are making the stocks of those companies less appealing.

Netflix shares have taken a pounding after it narrowly missed its Q4 2021 goal for added subscribers and announced a way lower forecast for Q1 2022 (dropping from 8.5 to 2.5 million). Increased competition in the space? Sure. People spending less time at home? Perhaps.

The author says she took a look at a couple of stocks that are part of many marketers' ways of life. ON24, the B2B webinar platform that made its debut on the market last year has drifted steadily around $16 to $20 over the last few months, but has shown a large decline since the heady days following the IPO. And Zoom? The poster boy for COVID success? A drop in value of over 70% from its 2020 peak. A rational market correction? Perhaps. Or perhaps it means we're opening up again, in investors' perceptions at least.
#bubble #bursting #pandemic #stock
  • Profile picture of the author Profit Traveler
    Banned
    No doubt some businesses could never continue the huge increases they enjoyed from lockdowns.

    Companies like excercise bike Peloton had some major shake ups.

    Was reading an article they were shipping rusted bikes as new just to keep up with demand.

    But home deliveries for example and ghost restaurants that only focus takeout and delivery probably will thrive.

    Also the surge in working from home opportunities that markerters can provide to new entreprenuers will only increase in my opinion.
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    • Profile picture of the author WF- Enzo
      Yes there are niches that might have to suffer as businesses gradually reopen.

      On the other hand, if we're talking about bikes, Shimano's supply chain should start to normalise. "Pandemic pricing" is a common alibi among retailers for the exhorbitant prices.

      Home deliveries will definitely thrive.

      Originally Posted by Profit Traveler View Post

      No doubt some businesses could never continue the huge increases they enjoyed from lockdowns.

      Companies like excercise bike Peloton had some major shake ups.

      Was reading an article they were shipping rusted bikes as new just to keep up with demand.

      But home deliveries for example and ghost restaurants that only focus takeout and delivery probably will thrive.

      Also the surge in working from home opportunities that markerters can provide to new entreprenuers will only increase in my opinion.
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  • Profile picture of the author tagiscom
    I read about a company today in the "Financial Review" that was losing a large part of market share, since there was a big downturn in mask sales, (ASX).

    And Pfizer lost a lot, which a well respected commentator on the news channel l watch said, "no one knows why"?

    Probably big hitters getting out, enough said.

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  • Profile picture of the author Profit Traveler
    Banned
    Was reading an artcle on corporate greed and businesses having record profits an still announcing upcoming price increases. Amazon always on the list.
    Also Mcdonalds an Starbucks.

    Pandemic Inflation.
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    • Profile picture of the author savidge4
      Originally Posted by Profit Traveler View Post

      Was reading an artcle on corporate greed and businesses having record profits an still announcing upcoming price increases. Amazon always on the list.
      Also Mcdonalds an Starbucks.

      Pandemic Inflation.
      Here is the thing...its profits yr over yr.. and last year was obviously better than the year prior.. but in either case both years shouldn't really count... Pulling more profit when you are comparing a period that the year previous you were shut down and made $0.00 well hmmm YEAH you are going to make more money. The Market and how it measures and reports did not counter the obvious Covid effect on the numbers that are reported.

      Costs went up this last year... Payroll I believe in just about every sector increased... the cost of goods have increased... the cost of transport has increased... the cost of gas has increased... we are seeing nothing but increases in Expenses - and they are comparing to a time frame where the market was all out of whack.
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  • Profile picture of the author savidge4
    this whole topic is complicated. There were bubbles PRIOR to Covid... Covid just extended the effect,and I would argue ended up making things worse.

    Our stock market is based on yr to date results... 2019 to 2020 numbers obviously dropped... but that was covered by the excuse of "Covid" then we jump from 2020 to 2021 numbers and most business' are showing an increase - NO DUH. But look at 2019 to 2021 numbers and there is still a decrease in a great majority of the market... and as new 2022 quarterly earnings are going to start rolling out, not to sure its going to be pretty... and comparing the numbers to 2019 and they will be terrible - and I think the "SMART" investors are starting to see this.

    Pfizer dropped for "unknown reasons" uh NO.. Pfizer dropped on the advisory that Pfizer released that the stock may fall when the Govt locked testing data was court ordered to be released - and even that has been swept away from your average persons view... if you would like proof I can provide a video or 2 on the subject.

    Covid provided a buffer - an excuse that has delayed the inevitable - add in the short term loan rates dropping to all time lows and you are about to see fortune 500's in big trouble. I say this because interest rates over the next year.. will probably increase in to double digits at the very least, and I think at this point in time with whats going on in the world "Today" between Russia, and China now flexing... interest rates will hit at least 20% by early 2023 at the latest.

    Those short term 2% - 4% loans with a long term 20% payback will cripple many a business.

    Those of us old enough remember the 70's / 80's and high interest rates - history is simply repeating itself. Savings accounts will be good investments in the near future... CD's etc

    To better understand this..in order to correct for inflation...the interest rates have to be higher than inflation. If the current rate is 7.5% its really more like 15... with the current Russia thing going on they are suggesting the rate might climb to 10% meaning its more like 20% Basically to correct inflation you have to equally balance the market with equal interest.

    All i can say is if you have debt... do everything you can to pay it down or pay it off NOW.
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