How long does the average hangover last – 24, 48 hours? It depends on the intensity of the drink, of course. No matter how long it fades with the post-pandemic hangover, many of the companies whose businesses thrived in the early part of the epidemic are experiencing it, as we saw from Peloton’s results for March today. The fitness equipment maker is still battling the mistakes his former leadership made by making too many luxury bikes and treadmills, even as demand declined after the end of the Covid-19 blockade. This left him with an expensive oversupply of stocks, which he is now trying to clean up with discounted sales.
And with declining revenues and an improvement that is still a long way off, Peloton’s market capitalization shrank to just $ 4.4 billion, from as much as $ 47 billion at the height of the pandemic. But Peloton is hardly alone in assessing the temporary effect provided by the blockade of Covid and its consequences. Take a look at Amazon, which recently admitted to being rebuilt and hired by the warehousing and logistics business as it tries to meet growing demand. Netflix executives admitted a few weeks ago that they also misinterpreted the slowdown in subscriber growth last year, saying it was only a result of the pandemic streaming boom, not a more fundamental change in the market.