If there’s one company that epitomizes this lousy year, it’s Zoom Communications. They are, of course, the best-known videoconferencing software company, and the Covid-19 pandemic fell into their lap like a goose that lays golden eggs.
Well, I’ve been saying for weeks now how I think their best days are behind them, and a serious breakdown is taking place. The last vestige of support gave way this morning. In just two months, the stock has lost nearly 40% of its peak value. I suspect dark days ahead.
The other “poster child” is Peloton, which I specifically mentioned on my tastytrade show last Wednesday as being an attractive short candidate based on its sky-high price and the fact it was crammed right up against its broken trendline. I really just don’t see a great future for a single-product company that counts on Americans wanting to spend a big fee every month to sit on their stationary bicycle.