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Zoom, Meta, Netflix among stay-at-home stocks that erased pandemic gains

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Yahoo Finance’s Ines Ferre joins the Live show to discuss the dip among stay-at-home stocks.

Video transcript

- Welcome back. It's the end of an era. Pandemic darlings have fallen sharply from their highs.

Investors that have bought shares of these companies in the first quarter of 2020 and held onto them are either flat or down on their investments. Ines Ferre is here with more. Ines, we talk about this a lot about how a lot of stocks have round tripped their investments. But looking to this particular cohort, what--

- [INAUDIBLE] we just talked to a company.

INES FERRE: Yeah, exactly.

- Obviously that's in that cohort.

INES FERRE: Exactly, and Zoom right now is trading at January 2020 levels. So if you take a look at some of these pandemic darlings, some of the high flyers during the pandemic, we took a look at Zoom, Peloton, also Teladoc and DocuSign. And all of these stocks, if you were to buy March 1 of 2020, about 10 days before the pandemic was declared, you'd be underwater with these stocks right now.

And it's not just these pandemic high flyers but also, for example, some of the big ones. Meta, for example, that's at March 20th, 2020 levels. Remember, March 23 lows back in 2020.

If you take a look at Netflix, that's trading at 2017 levels. Of course, you've had big announcements from them from their quarterly results, et cetera. But it's just fascinating to see how much the boats all rose during the pandemic and their all time highs. And some of these had their all time highs.

For example, Zoom had its all time high back in October of 2020. The stock was at $559. So those people who held on-- and there are many people who hold on for the long term. They decide that they want to-- they're strong believers, and they see these big gains during the pandemic.

And they're thinking, no, I'm going to keep those gains. But those are paper gains. If you didn't sell, you'd be underwater right now. It's hard to time it.

- If you don't sell now, maybe you can be above water at some point in the future.

INES FERRE: This reminds me a lot of the dotcom bubble because I was working at Priceline at the time. Priceline opened at around $80 and went way above that.

Then it went down to about $1.50. You remember Amazon was around $10. Cisco went from like $66 to down to like around $12. If you held on to those stocks after-- for years, then you'd be you'd be fine. But some--

- How many years? And how much opportunity loss is there? So that's what goes through my mind.

INES FERRE: Right, well, yeah. I guess so.

- Well, the thing is--

INES FERRE: Depends on if you need that cash in the interim, right?

- Well, you can deploy it better elsewhere instead of having it be dead money for a decade.

INES FERRE: That's true, and it depends also if you really believe in the company. I mean--

- That's true.

INES FERRE: --if you think that the company will be able to weather a recession, if you think that the company will be able to weather Fed tightening, I mean, that is the question. But if you believe that these are companies that will stick around for decades, then you may want to hold on to them rather than cut your losses.

- Well, it also matters a lot whether you're retiring in two years--

INES FERRE: Yes.

- --or 10 years--

- What is your target?

- --or 20 years. That's always what we like to point out as well. Thanks so much, Ines. Appreciate it.

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