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Over the course of 2020, some businesses struggled while others soared. The pandemic certainly chose winners and losers when it came to market shifts and consumer preferences. But things appear to be rapidly changing, and businesses that had been at peak performance have seen significant declines. Several major drops in business stocks after reopening have already occurred. As a result, it appears the business landscape is yet again changing in response to a post-pandemic reopening.

There are a number of notable changes in business stocks after reopening that deserve notice. Some involve sectors that enjoys triple-digit increases in revenues during the pandemic like telehealth and EdTech industries. Others involve companies that thrived in the Come-to-Me Economy including online e-commerce and food delivery. (The read more about the Come-to-Me Economy and how it has reshaped the business world in this Bold story.) But just because things aren’t as rosy after the post-pandemic reopening doesn’t mean all gloom and doom. It might just mean a recalibration is in order.

“As we progress to the world reopening, people have now integrated [videoconferencing] into their lives in the way they work, in the way they learn, the way that they socialize. That is not just going to change.” – Kelly Steckelberg, Chief Financial Officer, Zoom

Effects of a Post-Pandemic Reopening on Remote Work and Learning

With the world in quarantine, most of us had to learnt to live our lives from the comforts of our homes. For those accustomed to commuting to an office, that likely meant dialing into Zoom or Microsoft Teams. For kids, it probably meant learning how to navigate online learning platforms. Event for those in more advanced education, EdTech platforms became commonplace. (Dive deeper into educational technology and its driving forces in this Bold story.) But in the last couple of months, significant drops in these companies’ business stocks after reopening has been noted. Despite the benefits they provided, using these services to the same extent as before isn’t likely.

Let’s look at a few of these business stocks after reopening. Over the course of 2020, Zoom increased its revenues 735 percent! But with the post-pandemic reopening, stock prices have fallen about 50 percent. In terms of EdTech, Chegg as well as other online educational platforms have seen similar declines. Chegg specifically has lost a third of its stock value in the last two months. Despite this, venture capitalists still seem bullish on these sectors in a post-COVID world. But as far as public investors, they don’t seem to be so sure.

“I think the momentum today may be sufficient to break the old system paradigms and drive meaningful change in [medicine]. Certainly, the patients have come to expect the better, faster and easier care they get with telemedicine.” – Dr. Dan Carlin, CEO of New Hampshire-based telemedicine company, WorldClinic

Post-Pandemic Reopening and Telemedicine

Similar to some other sectors that flourished last year, the telehealth industry is also seeing dramatic shifts. Several have experienced significant declines in business stocks after reopening including Teladoc and American Well. While Teledoc doubled in value during the fiscal year 2020, its stock prices have fallen by half since February. America Well, which saw a 50 percent increase in its stock prices after filing for an IPO, recently dropped 60 percent. Analysts suggest these drops simply reflect a readjustment in what had been an inflated value.

A pair of workmates socially distanced in their office
A post-pandemic reopening means some changes to business–but what kinds of changes?

While this may be the case in part, recent drops in business stocks after reopening are also due to a changing landscape of competition. Amazon recently entered into the telehealth space and plans to offer its Amazon Cares to its employees. Several other mergers and consolidations also recently took place, including Cigna’s acquisition of MD Live. These developments probably are having a larger impact on stock prices than post-pandemic reopening itself. In fact, current projections suggest this sector will go from $56 billion to $299 billion in the next seven years.

“These slumps are knee-jerk reactions and don’t accurately reflect the fundamentals of those businesses and their long-term value propositions.” – Jeff Ransdell, Founding Partner and Managing Director, Fuel Venture Capital

Other Notable Drops in Business Stocks After Reopening

Beyond EdTech, telemedicine and videoconferencing, several other sectors did exceptionally well during the pandemic. Those related to online retail were among some of the strongest winners as consumers flocked to e-commerce. Likewise, food delivery services also enjoyed revenues boosts. And online exercise apps and platforms also soared as gyms and fitness centers closed. But these companies are also now experiencing drops in business stocks after reopening. Like the other sectors mentioned, the post-pandemic reopening seems to be resulting in value adjustments for these companies too.

Several businesses reflect these changes with significant drops in business stocks after reopening. For example, Peloton has recently fallen 47 percent in their stock price as has Door Dash. Online retailers Etsy and Shopify have similarly had struggles with the post-pandemic reopening. While Shopify stick fell 26 percent, Etsy dropped 35 percent. While this volatility might be concerning for some, analysts believe these companies too will rebound. As many have noted, consumers have come to appreciate their conveniences. They may not use their services as much, but these sectors will continue to thrive.

Time to Heal and Readjust

The world was blindsided by the pandemic, and a number of businesses had to reinvent themselves along the way. Many survived by being adaptable and dynamic. Others thrived simply because they were at the right place at the right time. Regardless, the post-pandemic reopening will bring forth new challenges that again require us to adapt. This will be difficult for many companies, but perhaps hardest for the businesses that did well during COVID. But while these readjustments take place, volatility of business stocks after reopening is to be expected. It will time to settle out and reach a new equilibrium. But as always, those companies that offer the greatest value will be the ones that excel. Figuring out what value means in a post-pandemic world is therefore the priority task at hand.

 

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