Pandemic favorites take off as investors’ eyes return to normal life Reuters

LONDON (Reuters) – Netflix (NASDAQ 🙂 ‘s favorite home market fell on Friday, coinciding with a sharp drop in the market value of other favorite pandemics this week, as investors hoped to return to normal as more countries gradually relaxed. COVID restrictions.

Netflix and Peloton (NASDAQ 🙂 then began sales as disappointing quarterly earnings spread across the broader sector of the home stay, as analysts believed the new variant of the Omicron coronavirus would not deliver the same economic winds seen in the first phase of the pandemic. 2020.

“The confirmation is that the economy is gradually moving towards some sort of normalization,” said Andrea Cicione, head of strategy at TS Lombard.

“What we find very interesting is that Omicron, because of its very high infection and very low morbidity compared to previous waves, such as the Delta variant, could be the first tangible sign that the pandemic is really evolving in the direction we all hoped for. It would become a manageable endemic disease like the flu. ”Platoon shares lost nearly a quarter of their value overnight, losing nearly $ 2.5 billion in market value after the bike maker’s CEO said he was reviewing the size of his team and” restoring “production. even the company denied that production was temporarily halted.

France will ease the rules of working from home from the beginning of February and will allow the nightclub to reopen two weeks later. People should return to the office in person to benefit from the partnership, the British business minister said on Friday. Netflix shares meanwhile fell nearly 20% in the first quarter after new subscriber growth was forecast to be less than half of analysts ’forecasts.

Shares fell 20% in pre-market trading, with shares opening at a 21-month low.

HOME DELIVERY

Both companies were part of a group, along with others like Zoom and Docusign, whose shares rose in 2020, and in some cases even in 2021, when people around the world were forced to stay home in the face of coronavirus. However, the spread of vaccines and the widespread spread of COVID-19’s so-called Omicron strain is bringing things back to normal in many countries, leaving companies like Netflix and Peloton struggling to maintain high sales. According to S3 Partners, short sellers doubled their profits by betting on Peloton in 2021, which is the third U.S. short to return. “With the return to the office and the opening of travel routes, the WFH (work from home) favorite topics are slowly but surely reflecting that the world is moving towards a new normalcy,” said Asian research chief Justin Tang. At United First Partners in Singapore.

Direxion’s Work from Home ETF fell more than 9% in the first three weeks of the year, with the US Blackrock (NYSE:) multi-sector virtual ETF weakening further compared to a 6% drop in the US broad stock market. more than 8% this year.

In Europe, blockchain winners are also going through a rough patch, with fears associated with a drop in the Omicron wave that rising bond yields add to the growth and stress they are putting on technology stocks.

British supermarket groups Ocado (LON :), HelloFresh, a German food delivery company, and German Hero HelloFresh, which emerged as the European champion from Delivery Hero at home in 2022, have been less than European. .