IHeart, Teladoc, WeWork, Zoom: Former Hot Stocks Hit The Skids

Somebody forgot to tell these stocks that it’s a big bull market and that everybody’s awash in the huge profits. iHeartMedia
iHeartMedia
, Teledoc, WeWork and Zoom Info are failing to participate. In fact, that’s putting it mildly. These 4 and others like them seem to have been passed up lately.

Photos of smiling, happy investor faces are not appearing with the headlines involving this set of sad, little equities. Each one has a unique story to go with the steady decline in the price of shares, but it’s a certainty that shareholders had something else in mind when they bought them.

IHeart Media.

Those who bought the stock in 2021 at the high of $28 and who have held it until the current $1.36 are now down by 95%. IHeart hasn’t traded above its 50-day moving average since early 2022. Nearing penny-stock status must be quite a surprise for long-term holders if there are any left.

Down by 39% this week after the company reported a 1st quarter earnings loss and a lower revenue number than had been expected by analysts. This is the San Antonio, Texas-based former Clear Channel Radio which took on the new name in September 2014.

Teladoc.

The health information services stock peaked at $300 in early 2021. It now goes for $11.96. For anyone who became a shareholder at the top and has held on until now, that’s a loss of 96%. In early 2022, the 50-week moving average crossed below the 200-week moving average, a negative pattern which proved correct.

Teladoc reported a 1st quarter loss that came in at a worse level than the loss of last year’s 1st quarter. Visits to the “digital” healthcare company have been decreasing ever since the Covid pandemic faded and patients began to office appointments again.

WeWork.

It’s hard to believe now but some venture capital/private equity investors were very excited about the idea of “co-working” office rentals as a publicly traded company. WeWork traded as high as $600 in October 2021 and shortly thereafter dropped below its 50-week moving average and stayed below it.

The stock now trades on the over-the-counter pink sheets at just 15 cents per share a more than 99% loss for investors who bought at the top and who have refused to sell. Former WeWork CEO Adam Neumann was recently cut out of a plan to take company out of bankruptcy.

Zoom Video Communications
Zoom Video Communications
.

The cloud computing software application company traded as high as $575 in October 2020. The current price of $61.50 represents a loss of 89% from the top to now. The chart shows how difficult it’s become for the stock to make it back above its 50-week moving average.

It’s odd to see a tech company trade so poorly when the big cap Nasdaq 100 favorites are not that far from new highs. It should be noted that Rosenblatt Securites on April 18th, 2024 upgraded its rating on Zoom from “neutral” to “buy” with a price target of $75.