There is a market correction which is being observed in various stocks with the pandemic waning as people are traveling more
With The Tourism Sector Rebounding And pandemic Warning
With Health Experts indicating that the COVID-19 pandemic could end soon, Airline stocks together with online bookings are at an all-time high. Companies like Airbnb have also seen recovery as more people are out of their homes in a travel rebound after waning off of the pandemic. At the same time, stay-at-home stocks are plummeting and are not that profitable.
According to Peter Kern, Expedia CEO the growth is evident everywhere including his company which has seen revenue growth of 97 percent when compared to the previous year as pandemic wanes off growth has been evident in every sector.
Expedia share has grown by 16 percent on Friday and rival Booking Holdings share prices have jumped to about 7 percent. Airbnb has seen a 13 percent growth in share prices and closed on the best figures since its IPO last year. The home-sharing company Airbnb has seen a 280 percent increase in profit.
Airlines are back among profits climbing to 13 percent as the US plans to lift the international travel ban. American Airlines saw growth by 14 percent and Southwest Airlines have seen a growth of 10 percent for the week.
There has been a further surge in travel after Pfizer announced that its COVID-19 pill combined with a common HIV drug reduced the risk of hospitalization and death by 89 percent.
According to Dr. Scott Gottlieb, a Pfizer board member the COVID-19 could end in the US by January at the same time when Biden’s workplace mandate of vaccine is going to come to effect.
At the same time, Peloton, the home workout company has seen its worst day since its IPO in 2019. They incurred a huge quarterly loss as the gym re-opens all over the country and demand for its products and services wanes off. Its shares have plummeted by 35 percent on Friday since June 2020.
According to John Foley CEO, in a letter to shareholders said that they expected fiscal 2020 to be challenging and difficult to predict as there is uncertainty in the effects of reopening of the economies, and constraints in the supply chain and unpredictable commodity cost.
There have been reports that Peloton’s have halted hirings in all departments.
Companies like Netflix has also seen a drop of 6.5 percent this week. Zoom, the video chat company has also registered a drop of 6 percent a contrast from 326 percent growth in revenue in 2020. Doordash, a food delivery provider which became a household name last year has fallen by 4 percent.
The reason these companies are seeing a fall is that the consumers are back in theatres, concerts, and restaurants spelling doom for stay-at-home companies.
Companies that get people from place to place like Uber and Lyft are also seeing a rise. Uber has reported a 72 percent revenue growth compared to a year earlier, with the number of drivers increasing to nearly 60 percent. Lyft have also announced millions in form of incentives to make the drivers come back. Lyft’s shares has seen a up of 17 percent.
Broadways and Live music concerts have seen a comeback as people are flocking to live shows. Shares of Live Nation Entertainment are up by 15 percent on Friday.
Hoping for good days ahead still and delta variant not having the impact as predicted earlier these trends are going to continue and people are going to come out of their homes.