TeamViewer Warning a Wake-Up Call for Europe’s Lockdown Darlings
(Bloomberg) -- European pandemic winners from online fashion retailers to companies supporting remote-working are suffering lockdown withdrawal symptoms.
TeamViewer AG’s outlook cut on Wednesday was followed by a whopping 28% plunge that dragged the German software maker’s shares to a record low. It’s among growing signs that the good times for companies that benefited from people stuck at home during the pandemic are ending.
With Europe’s third-quarter earnings season just around the corner, investors will keep a close eye on online food delivery firm Just Eat Takeaway.com NV’s trading update and retailer Asos Plc’s full-year results, both due next week.
Analysts are also sounding the alarm. Logitech International SA fell as much as 8.3% last week after Morgan Stanley downgraded the Swiss maker of headsets, wireless mice and webcams to underweight, citing expectations for demand to fade and earnings estimates to decline.
As the world reopens and gets used to “living with” Covid-19, there is pent-up demand for experiences such as travel and eating out over acquiring material objects, Neil Campling, head of TMT research at Mirabaud Securities, said in written comments. “That normalization trend, combined with tough comparisons, logistic issues, supply-chain disruption and inflation spells trouble for many.”
Indeed, AO World Plc and Boohoo Group Plc both cited logistical headwinds hurting their businesses. Boohoo, whose revenue hit a record in the first half, cut its profit and sales forecasts on shipping snags and wage inflation.
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