Peloton Struggles as Uber and Airbnb See Gains

Pandemic Winners and Losers Change as Reopenings Continue

The pandemic winners and losers are getting shaken up, with stay-at-home stocks experiencing slowdowns in demand at the same time that pandemic losers are recovering. This is a trend which many investors have been betting on since COVID-19 vaccines became available. With COVID-19 cases declining, people are venturing out and returning to work. They are ditching their stay-at-home distractions for experiences outside of their homes.

Peloton (PTON) has certainly felt the impact of these trends. For the fiscal first quarter, the at-home fitness equipment maker posted its slowest quarterly gain in subscribers since its public debut. The company now expects annual revenue to be as much as 20% lower than its earlier forecast. Meanwhile, Planet Fitness (PLNT) said same-store growth returned in the third quarter, so much so that it raised its full-year sales and new store openings targets for this year.

Uber Sees Demand Surge

The ride-hailing giant Uber (UBER) is having a completely different experience than it did at the onset of the pandemic as the economy reopens. Lifted by demand for rides and food delivery, Uber recently posted revenue of $4.8 billion—up 72% year-over-year and ahead of Wall Street’s forecasts. On an EBITDA basis, Uber was profitable for the first time ever.

Unlike Peloton, which saw subscriber growth slow, Uber’s customers are getting out more and as a result are hailing rides. Monthly active users at Uber increased 40% year-over year while trips increased 39% to 1.64 billion. Gross bookings were up 67% during the quarter. Even Uber’s delivery business saw strong growth, with sales up 97% year-over-year.

Airbnb Posts Record Revenue, Net Income

Airbnb (ABNB), which also struggled during the pandemic, is seeing business improve as more people receive vaccinations across the globe and begin traveling again. During the third quarter, Airbnb said 79.7 million nights and experiences were booked on the platform, which is up 29% year-over-year. It is slightly lower than the second quarter and Wall Street’s target for 80.8 million. Urban and cross-border travel has not resumed at Airbnb, yet the company posted its highest quarterly revenue and net income ever. Revenue of $2.24 billion was up 67% compared to last year while net income soared 280% to $834 million.

The pandemic changed the way we work out, travel, and get around. Though the pandemic is not over, some patterns of pre-pandemic life are beginning to make a comeback. Whether that continues comes down to if COVID-19 cases rise again and if the country is able to manage potential spikes in the future.

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