Global markets were hit hard after reports revealed the emergence of the Omicron COVID-19 variant in South Africa last week. The Dow Jones suffered its worst drop since 2020. However, some U.S. stocks defied the market pull back. These companies thrived in the face of the pandemic and may have a chance to gain more momentum as we move into December.
Peloton (NASDAQ:PTON) saw its business erupt over the course of the pandemic. It provides interactive fitness products in North America and around the world. Shares of Peloton shot up over 5% on November 26. However, the stock nearly gave up all those gains on November 29.
In the first quarter of fiscal 2022, the company posted a loss of $376 million or $1.25 per share which came in well below analyst expectations. Meanwhile, revenue also fell short of expectations at $805 million. Peloton saw sales spike 250% in the first quarter of fiscal 2021. Sales have slowed down significantly as pandemic-inspired restrictions have drawn down.
Docusign (NASDAQ:DOCU) is another company that saw a huge boost due to the COVID-19 pandemic and the work-at-home revolution. Its shares have climbed 13% in 2021 as of close on November 29. However, the stock has dipped 9.5% month over month.
In Q2 FY2022, Docusign’s total revenue jumped 50% to $511 million. Meanwhile, billings jumped 47% to $595 million. Unlike Peloton, Docusign is a growth stock I’m more inclined to trust even when the pandemic is finally in the rear-view mirror. The nature of work has changed forever, and the technology offered by Docusign will be crucial in furthering this transition.