100s of titles, one news app for just $10 a month.
Dive Deeper:
Stocks are way down. They are still expensive
The S&P 500 still has plenty of room to fall, if history is any guide
How to make sense of the market crash
One major factor is the withdrawal of monetary and fiscal policies from their extra-accommodative, expansionist stance adopted to cushion the…
Asian shares track technology-led sell-off on Wall Street
Shares have declined in Asia following the release of U.S. inflation data that was worse than expected
Dow Jones Futures Jump; TWTR Stock Crashes, Pares Losses On Elon Musk's Twitter Deal Tweets
Futures are rising. Will this bounce stick? TWTR stock initially crashed as Tesla CEO Elon Musk put the Twitter deal…
One subscription that gives you access to news from hundreds of sites
One Year Since Uber's IPO: A Look At The Stock's Bumpy Ride
Most investors who owned stocks in the past year have lost money. the SPDR S&P 500 SPY (NYSE: SPY) total…
If You Invested $1,000 In The Coinbase IPO, Here's How Much You'd Have Now
Cryptocurrency platform Coinbase Global Inc (NASDAQ: COIN) had one of the biggest public listings of all time when it went…
Get all your news in one place
Latest Business news:
Age of Scarcity Begins With $1.6 Trillion Hit to World Economy
New fault-lines are likely to outlast war and plague — leaving the global economy smaller and prices higher.
Read news from The Economist, FT, Bloomberg and more, with one subscription
Learn More
Sydney-based startup Space Machines Company partners with SpaceX
Sydney-based in-space logistics startup Space Machines Company has partnered with Elon Musk’s SpaceX to launch its spacecraft next year. Space…
How a Trash-Talking Crypto Bro Caused a $40 Billion Crash
Do Kwon, a trash-talking entrepreneur from South Korea, called the cryptocurrency he created in 2018 “my greatest invention.” In countless…
Google’s Russian business plans to file for bankruptcy
Google says its Russian subsidiary is planning to file for bankruptcy because it can't pay staff and suppliers. Russian state…
SA moves to scrap tax on electric vehicles
South Australia's new Labor government has delivered on one of its election promises and moved to scrap plans for a…
From analysis to good news, read the world’s best news in one place
Crypto billionaire Sam Bankman-Fried: ‘I got involved with no clue what a blockchain was’
The FTX founder on hype, the problem with bitcoin and how crypto can build a fairer financial system
Wall Street stocks tumble following weak results from retailers
New York (AFP) - Wall Street stocks suffered one of their worst batterings since 2020 on Wednesday, as downcast earnings…

Five Imploding $40 Billion Companies Are Shadows Of What They Were

By MATT KRANTZ

If you feel poorer following the S&P 500's sell-off, just know it could be worse. Much worse. Investors who piled into some $40 billion companies are suffering as nearly all that wealth vanished.

Five stocks in the S&P 1500 or S&P Completion Indexes that topped out with whopping market values of $40 billion or more last year, including Teledoc Health, Zillow and Peloton Interactive, are now a fraction of their former selves, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith. All are now worth well less than $10 billion, or more than 70% less.

Such massive implosions of market value are emblematic of what's going on in this S&P 500 sell-off. Stocks with over-the-top valuations are getting viciously repriced in an epic markdown.

"No one can confidently answer the question of when stocks will hit the bottom, but if the options market is the primary focal point for many traders, that could suggest downward pressure on stocks could last a while longer," says Edward Moya, strategist at Oanda.

S&P 500 Wreckage Everywhere

The S&P 500's 18.3% drop from the high may not sound like much. After all, that's not even bad enough to qualify as a 20% bear market. But that's masking the massive wealth destruction going on.

All investors as a group are now down more than $10 trillion this year, says Wilshire Associates. And some big names account for a bulk of those losses. The largest loss in market value from the all-time high is Amazon. Shares of the online retailer shed a remarkable $766 billion in market value from its all-time high on July 13, 2021. That's a 43% drop in market value.

And some are concerned, too, Apple is getting dragged in as well. Apple investors lost $638 billion in market value, or 22%, from their all time high on Jan. 4, 2022. "It is a troubling sign when investors sour on best of breed names in an already difficult tape," said Nicholas Colas of DataTrek Research.

But those drops are merely a flesh wound compared to the market's biggest reversals of fortune.

Peloton, Teladoc Inflict A World Of Hurt

Think keeping up with Peloton instructors is painful? Try owning the stock.

Shares of Peloton topped out with a massive $45.4 billion market valuation on Nov. 18, 2021. The stock hit 176.65 on that day as it looked like people would ditch their gyms and workout at home. But now it's the Peloton investors who are sweating and perhaps hoping for a buyout. The company's market value shriveled nearly 90% from the highs to be worth just $4.6 billion now, or 13.83 a share.

Furthermore, investors don't have any fundamentals to lean on. The exercise bike company is expected to lose upwards of $3 billion dollars, or nearly as much as the entire company is worth, over the next three years.

It's a similarly dire situation over at online health firm Teladoc. This is a company that was valued at north of $42 billion when it peaked out on Feb. 16, 2021. But its value has sunk nearly 90% since then to just $4.9 billion. And again, analysts sees losses as far as the eye can see. The company is expected to lose $233 million in 2022, $201 million in 2023 and $98 million in 2024.

And then there's the epic fail of online housing listing company, Zillow. Disastrously poor business decisions prompted the company worth $48 billion in February 2021 to drop to just $9.2 billion now.

But won't these fallen heroes bounce back? Don't count on it. The Gap, Xerox and Juniper were also all formerly worth more than $40 billion roughly two decades ago. All of them are worth less than $10 billion today.

Ouch! Fallen $40 Billion Companies

Companies peaked at $40 billion or more since 2020 all worth less than 25% of that now

Company Ticker Market value in $ billions at (all time high) Market value now ($ billions) % lost from all time hi Sector
Zillow Group $48.4 (Feb. 16, 2021) $9.2 -82.4% Real Estate
Peloton Interactive 48.3 (Jan. 14, 2021) 4.6 -92.0 Consumer Discretionary
Affirm Holdings 45.4 (Nov. 8, 2021) 5.1 -89.8 Information Technology
Teladoc Health 42.2 (Feb. 16, 2021) 4.9 -90.0 Health Care
UiPath 41.7 (May 28, 2021) 8.3 -83.0 Information Technology
Sources: IBD, S&P Global Market Intelligence
Follow Matt Krantz on Twitter @mattkrantz
What is inkl?
The world’s most important news, from 100+ trusted global sources, in one place.
Morning Edition
Your daily
news overview

Morning Edition ensures you start your day well informed.

No paywalls, no clickbait, no ads
Enjoy beautiful reading

Content is only half the story. The world's best news experience is free from distraction: ad-free, clickbait-free, and beautifully designed.

Expert Curation
The news you need to know

Stories are ranked by proprietary algorithms based on importance and curated by real news journalists to ensure that you receive the most important stories as they break.

Dive Deeper:
Stocks are way down. They are still expensive
The S&P 500 still has plenty of room to fall, if history is any guide
How to make sense of the market crash
One major factor is the withdrawal of monetary and fiscal policies from their extra-accommodative, expansionist stance adopted to cushion the…
Asian shares track technology-led sell-off on Wall Street
Shares have declined in Asia following the release of U.S. inflation data that was worse than expected
Dow Jones Futures Jump; TWTR Stock Crashes, Pares Losses On Elon Musk's Twitter Deal Tweets
Futures are rising. Will this bounce stick? TWTR stock initially crashed as Tesla CEO Elon Musk put the Twitter deal…
One subscription that gives you access to news from hundreds of sites
One Year Since Uber's IPO: A Look At The Stock's Bumpy Ride
Most investors who owned stocks in the past year have lost money. the SPDR S&P 500 SPY (NYSE: SPY) total…
If You Invested $1,000 In The Coinbase IPO, Here's How Much You'd Have Now
Cryptocurrency platform Coinbase Global Inc (NASDAQ: COIN) had one of the biggest public listings of all time when it went…
Get all your news in one place