Pandemic market darlings Netflix and Peloton each saw about a fifth of their market value wiped out on Thursday after both said business was slowing, a sign, say analysts, of growing market jitters about the business prospects of such companies.
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Peloton shares plunged 24% on Thursday wiping off nearly $2.5 billion in market value after the exercise bike maker's CEO said it was reviewing the size of its workforce and "resetting" production levels, though it denied the company was temporarily halting production.
Meanwhile Netflix shares tumbled nearly 20% after it forecast new subscriber growth in the first quarter would be less than half of analysts' predictions.
According to data from S3 Partners, short-sellers doubled their profits by betting against Peloton in 2021, the third-best returning US short.
"With a return to the office and travel lanes opening, darlings of the WFH (work from home) thematic are reflecting the growing reality that the world is moving slowly but with certainty towards a new normalcy," said Justin Tang, head of Asian research at United First Partners in Singapore.
