Zoom, Peloton shares rise on new Covid variant fears

Zoom shares were up more than 7% while Peloton stock popped more than 6% Friday morning on concerns of a new Covid variant in South Africa.

Both companies soared during the pandemic as people worked, learned and exercised at home, but are down for the year as people return to work, school and gyms. Shares of Zoom are down more than 69% year-to-date while shares of Peloton are down more than 34% year-to-date.

Meanwhile, shares of companies that have benefitted from the reopening are down.

Expedia was off by more than 11% this morning. Lyft, Airbnb and Uber stock were all down by more than 5%.

The extent of the spread of the new variant is still unknown and it’s unclear what kind of impact, if any, it will have. But, it’s a reversal from earlier in the month, after travel companies like Delta, Airbnb, Expedia pointed to clear signs of recovery in recent earnings reports and as stay-at-home stocks like Peloton, Zoom and Netflix declined amid indications that the Covid-19 pandemic end might come sooner than expected.

Zoom could erase some of its losses from earlier in the week if the momentum holds. Shares of Zoom closed down 14.7% on Tuesday after the company warned investors of a revenue slowdown and Wall Street firms cut price targets on the stock.

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