Why Shopify, Peloton, and Carvana Fell Hard on Wednesday
Shares of Shopify (NYSE: SHOP), Peloton (NASDAQ: PTON), and Carvana (NYSE: CVNA) were plunging on Wednesday, down 6.6%, 7%, and 8.8%, respectively, as of 2:51 p.m. ET.
There wasn't much new company-specific news today, but these three former market darlings fell as recession fears appeared to mount in the market. Of note, Shopify completed its 10-for-1 stock split today, which usually leads to a bump in retail buying. However, the stock fell anyway, perhaps on a "sell the news" event.
Since these three companies boomed during the pandemic, investors and analysts are fearing a continued-demand "air pocket" in 2022 as consumer budgets get squeezed. Additionally, Peloton saw its price target lowered by Wall Street analysts today, adding to the pessimism.
Source Fool.com
