Pandemic-fueled business booms might be over
The Future. Over the past two years, companies like Netflix and Peloton saw their business skyrocket because of COVID. Bored at home, consumers drove demand for things like streaming services and at-home gym workout equipment. But this past week, these sectors are seeing market value plummet drastically… potentially signaling the end of pandemic-driven economic growth.
Sectors that saw massive growth during the pandemic are slowing down.
- Netflix is expecting to report the lowest number of new subscribers since 2010 — around 2.5 million. In recent years, it has posted around 4 million new sign-ups in Q1.
- Peloton shares have been on a decline and recently took a huge 20% nosedive after rumors of production halts were leaked.
Experts believe that these recent stumbles are a sign of what’s ahead. As TechCrunch points out, “Netflix is an example, but what the company is going through could be an indicator of what’s ahead for other consumer services that had a strong period of growth amid the pandemic.”
It has now been over two years since the start of lockdowns, and the initial explosion of economic activity is steadily losing momentum. If you’ve been paying attention to the stock market (anyone else’s portfolio feeling the pain?), sentiments across the economy seem dour. And let’s not even get started on what’s going on over in crypto.