- Work-from-home stocks that were big winners amid the COVID-19 pandemic have since crashed.
- Shares of Zoom Video, Docusign, and Roku are now trading at their pre-pandemic levels.
- These are seven work-from-home darlings that have crashed back to earth amid a reopening of the US economy.
The COVID-19 pandemic was a difficult environment for investors to navigate, as a swift 34% bear market in the S&P 500 quickly led to a rebound to record highs.
And it wasn't traditional economy stocks that were rewarded in the aftermath of the pandemic throughout 2020 and early 2021. Instead, hypergrowth technology companies that had little-to-no profits but were seen as key to enable a work-from-home environment surged to record valuations.
Some of the names are owned by Ark Invest and helped propel the disruptive innovation investment strategy and briefly attracted tens of billions of dollars in assets under management.
But amid an ongoing reopening of the US economy and as employers start to call back workers into offices, these stocks are unraveling. Several work-from-home darlings have given back all of their gains seen over the past two years and are trading at pre-pandemic levels.
That's despite a massive boom in the underlying revenue of some of these companies, as they did enjoy hypergrowth as more and more employers and consumers adopted their products. But the evaporated gains are accelerating into significant losses as investors rotate out of growth and back into traditional economy stocks.
The move has since been exacerbated by Russia's invasion of Ukraine, as soaring commodity prices lead to big gains for the energy and agricultural sectors.
These are the seven stocks that have suffered massive losses over the past year as the work-from-home trade unwinds, according to data from Koyfin.
7. Chewy.com
Ticker: CHWY
Decline from record high: -68%
Decline in market value: $33 billion
6. Wayfair
Ticker: W
Decline from record high: -69%
Decline in market value: $22 billion
5. Shopify
Ticker: SHOP
Decline from record high: -69%
Decline in market value: $141 billion
4. Docusign
Ticker: DOCU
Decline from record high: -77%
Decline in market value: $42 billion
3. Roku
Ticker: ROKU
Decline from record high: -78%
Decline in market value: $48 billion
2. Teladoc
Ticker: TDOC
Decline from record high: -82%
Decline in market value: $33 billion
1. Zoom Video
Ticker: ZM
Decline from record high: -83%
Decline in market value: $131 billion