The biggest beneficiaries of the pandemic have been cloud and software-as-a-service (SaaS) companies. Among the top-performing companies in 2020 was Zoom, which saw its stock price rise 569%.
Other work from home stocks such as Asana, DocuSign, and Domo have also seen rapid growth due to the rise of remote work.
However, the high-flying stocks of these 3 companies quickly came crashing down after they reported their earnings. Although the reports were not terrible, the companies warned of shifting consumer behaviour.
DocuSign CEO Dan Springer acknowledged that demand and growth had slowed down in the quarter following strong demand throughout the pandemic.
He said:
βWhile we had expected an eventual step down from the peak levels of growth achieved during the height of the pandemic, the environment shifted more quickly than we anticipated.β