Stock Groups

Travel stocks rally and stay-at-home stocks drop as Covid-19 ends

[ad_1]

Check-in is at John Wayne Airport Santa Ana CA, Wednesday June 30, 2021.

MediaNews Group – Orange County Register via Getty Images| MediaNews Group | Orange County Register via Getty Images

The pandemic stock portfolio of the travel industry is being flipped upside down by executives touting the rapid rise in tourism and entertainment.

As well as online booking and ride-hailing sites, airlines stock prices are on the rise AirbnbFollowing earnings reports that showed signs of travel recovery, there were clear signs. However, the stocks of stay-at home stock are falling as the borders reopen. Experts also suggest that the Covid-19 pandemic may be ending sooner than anticipated.

“We’ve seen them everywhere.” ExpediaOn Thursday’s earnings call, CEO Peter Kern spoke to analysts after reporting a 97% increase in revenues over a year ago. “Cities are improving. The international market has seen growth. Nearly all areas have seen growth.”

Expedia shares shot up 16% last Friday. Competitors also rose. Booking HoldingsOver 7% increase. Airbnb saw a 13% increase and posted its highest week ever since it was IPO’d late last year. reportedBetter-than-expected revenues and 280% more profit

The airlines have finally returned. DeltaThe U.S. is preparing to have its strongest week for about one year. Its best week was up 13% lift international travel bans American AirlinesIt jumped by 14% Southwest AirlinesThe week’s increase was more than 10%

Following an announcement by PfizerThe following was written by Friday that its Covid-19 pillWhen combined with common HIV drugs, it reduces the likelihood of death and hospitalization by 89% among high-risk individuals who have been exposed to HIV. CNBC’s Dr. Scott Gottlieb is a member of the Pfizer Board.Squawk BoxCovid-19 could end in the U.S. by early JanuaryWhen President Biden’s mandate for workplace vaccinations goes into effect.

Gottlieb said that mandates to be in place before Jan. 4, really will come on the tailend of this pandemic. He’s also an ex-commissioner of the Food and Drug Administration. 

In the meantime, PelotonThe stock had its worst day in the markets since 2019, when the IPO was made by the home gym company. Peloton reported a wider-than-expected quarterly lossLate Thursday, as the company tries to deal with declining demand due to the reopening gyms and constraints in its supply chain.

Peloton shares plunged 35% to reach their lowest point since June 2020 on Friday.

John Foley, chief executive officer, stated in a letter to shareholders that “we anticipated fiscal 2022 to be a very difficult year to forecast” due to the unusual year-ago comparies, demand uncertainty amid re-opening countries, supply chain constraints, commodity cost pressures and widespread-reported supply chains. 

During an all-hands meeting on Friday, Peloton halted hiring across all departments effective immediately, CNBC has learned.

Peloton’s dramatic plunge was not quite so spectacular, however. NetflixThe streaming-video company’s worst week since April was a 6.5% drop this week. ZoomVideo-chat giant ‘, which was the mainstay of everyone’s pandemic portfolio. revenue in 2020The stock rose 326% and fell 6% Friday. Provider of food-delivery DoordashThe popularity of the name “” dropped more than 4% last year.

Netflix, Zoom and Doordash could face problems if workers return to the workplace and customers go back to movies, restaurants and concert venues. Investors are turning into ride-sharing companies to help people get between places. UberLyft.

Uber is open for business on Thursday reportedWith a 72% increase in revenue compared with a previous year, the active mobility driver count increased by almost 60%. LyftAccording to a statement by, the company also has millions invested in incentive programs. drivers are coming back. Lyft’s shares went up 17%, while Uber rose almost 8%.

Uber CEO Dara Khorowshahi stated that the demand and supply problems that were created during the pandemic have been resolving themselves. He said that surge pricing has fallen by half and that wait times average less than five minutes.

Khosrowshahi said that the rebound was unmistakable on CNBC’s “Squawk box” Friday. He also stated that business travel and airports are coming back, although the scale of the rebound depends on where you live. The human condition of wanting out, wanting to go, and wanting to be free from the home is universal.

Broadway plays began reopening in SeptemberWhile movie ticket sales are upAnd theaters and concert venues are now open. There are shares Live Nation EntertainmentThe company’s strong third-quarter results, which saw a 15% increase in sales on Friday, prompted by Friday’s surge of 15% EventbriteThe increase was greater than 5%

Michael Rapino (CEO of Live Nation), stated that “live music roared back” during the quarter. He was speaking on Live Nation’s earnings call. Rapino stated that ticket sales to major festivals increased 10% in the third quarter compared with 2019, and “many festivals selling out in record times.”

WATCH: Pent up demand for entertainment is driving the sector

[ad_2]