Wall Street

New African Variant Pushes Zoom and Peloton Shares Higher

Zoom and Peloton shares rise after concerns about the new variant of the Corona virus

Zoom’s stock rose more than 7%, coinciding with the 6% increase in Peloton share, after fears spread about the new mutator from the corona that appeared in South Africa, but Zoom’s shares recorded a decline of 33% since the beginning of this year so far, while Peloton shares are down 69% over the same period.

Both companies have had great success and stock surges during the pandemic while people work, learn and exercise at home, but their stocks have declined this year as people return to workplaces, schools and gyms, and after the emergence of the new mutant, the shares of companies that have benefited from the reopening of the economy, read more [Boeing and Airline Stocks Decline Due to the New Variant], Expedia stock fell 11%, and Lyft, Airbnb and Uber shares all fell more than 5%.

The extent of the spread of the new strain is still unknown and it is not entirely clear what damage, if any, it will cause, but what we do know is that it led to a reversal of the trends witnessed by companies earlier this month after companies such as Delta, Airbnb and Expedia pointed to clear signs of recovery in their financial reports, while shares of companies related to stay-at-home activities such as Peloton, Zoom and Netflix suffered a decline amid signs that the end of the Corona pandemic may be closer than expected.

Zoom may compensate for some of its losses incurred early last week if the trading momentum continues, as its stock closed down 14.7% on Tuesday after warning investors of slowing revenues and Wall Street companies cutting their price targets. Read more [Zoom Exceeds Expectations Despite the End of the Epidemic].

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