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Businesses that boomed during pandemic now facing financial struggles

Not Real News
Posted at 7:25 AM, Aug 29, 2022
and last updated 2022-08-29 10:25:35-04

(KERO) — Companies that experienced unexpected booms during the pandemic are now experiencing unexpected busts. Brands such as Peloton, Zoom, and Netflix are now facing unexpected financial troubles.

Peloton, a fitness equipment company, had stock soar over 430 percent as fitness enthusiasts skipped the gym to exercise at home. Now Peloton shares have lost more than 90 percent of their value since the end of 2020. A result of gyms re-opening to full capacity.

Companies Wayfair, Shopify, Zoom, and Netflix are all facing similar issues.

Online home goods retailer Wayfair is laying off five percent of its staff as consumers return to brick-and-mortar stores. E-commerce platform Shopify is cutting 10 percent of its staff for the same reason. Zoom, which boomed during the pandemic as it replaced in-person business meetings, has recently seen its earnings plunge 71 percent. Meanwhile, Netflix, whose shares skyrocketed during the lockdown, is losing subscribers globally instead of increasing them.