As the bull market continues to soar, some stocks are failing to reap the benefits. Companies like iHeartMedia, Teladoc, WeWork, and Zoom Video Communications have seen a steady decline in their share prices, leaving investors disappointed. iHeartMedia, once trading at $28 in 2021, is now at $1.36, down by 95%. Teladoc peaked at $300 in early 2021 and now stands at $11.96, marking a loss of 96% for shareholders who bought at the top.
iHeartMedia, based in San Antonio, Texas, reported a 1st quarter earnings loss, leading to a 39% drop in its stock price. Teladoc, a digital healthcare company, has seen a decrease in visits as patients return to office appointments post-Covid. WeWork, once a highly anticipated co-working office rental company, has plummeted to just 15 cents per share on the pink sheets, a more than 99% loss for investors who bought at the top.
Zoom Video Communications, a cloud computing software company, has also faced a significant decline, trading at $61.50 from a high of $575 in October 2020, resulting in an 89% loss. Despite the challenges, some analysts, like Rosenblatt Securities, have upgraded their rating on Zoom from “neutral” to “buy” with a price target of $75. The stock’s struggle to reclaim its 50-week moving average highlights its difficulty in keeping up with the tech industry’s top performers.
It’s a stark contrast to the overall market, where investors are reaping massive profits. These struggling stocks have left shareholders in disbelief as their investments continue to dwindle in value. Former executive Adam Neumann’s failed attempt to revive WeWork and take it out of bankruptcy further adds to the company’s woes. The failure of these stocks to recover and show strength in a booming market raises concerns about their long-term viability.
Investors who bought into these companies at their peak are now facing significant losses, with some stocks trading at near penny-stock prices. It’s a harsh reality for those who believed in the potential of these once-promising companies. As the market continues to evolve and new trends emerge, it remains to be seen if these companies can turn their fortunes around and regain investor confidence.
