Work-from-home darling Zoom just saw its stock tumble back to pre-COVID levels. Here are 6 other remote-era favorites that have seen valuations tank
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Matthew Fox
Mar 12, 2022, 01:24 IST
Johannes Eisele/AFP via Getty Images
Work-from-home stocks that were big winners amid the COVID-19 pandemic have since crashed.
Shares of Zoom Video, Docusign, and Roku are now trading at their pre-pandemic levels.
These are seven work-from-home darlings that have crashed back to earth amid a reopening of the US economy.
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The COVID-19 pandemic was a difficult environment for investors to navigate, as a swift 34% bear market in the S&P 500 quickly led to a rebound to record highs.
And it wasn't traditional economy stocks that were rewarded in the aftermath of the pandemic throughout 2020 and early 2021. Instead, hypergrowth technology companies that had little-to-no profits but were seen as key to enable a work-from-home environment surged to record valuations.
But amid an ongoing reopening of the US economy and as employers start to call back workers into offices, these stocks are unraveling. Several work-from-home darlings have given back all of their gains seen over the past two years and are trading at pre-pandemic levels.
That's despite a massive boom in the underlying revenue of some of these companies, as they did enjoy hypergrowth as more and more employers and consumers adopted their products. But the evaporated gains are accelerating into significant losses as investors rotate out of growth and back into traditional economy stocks.
These are the seven stocks that have suffered massive losses over the past year as the work-from-home trade unwinds, according to data from Koyfin.
7. Chewy.com
Ticker: CHWY Decline from record high: -68% Decline in market value: $33 billion
6. Wayfair
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Ticker: W Decline from record high: -69% Decline in market value: $22 billion
5. Shopify
Ticker: SHOP Decline from record high: -69% Decline in market value: $141 billion
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4. Docusign
Ticker: DOCU Decline from record high: -77% Decline in market value: $42 billion
3. Roku
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Ticker: ROKU Decline from record high: -78% Decline in market value: $48 billion
2. Teladoc
Ticker: TDOC Decline from record high: -82% Decline in market value: $33 billion
1. Zoom Video
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Ticker: ZM Decline from record high: -83% Decline in market value: $131 billion
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