The 6-month marker from the onset of the pandemic and its trends is starting to change minds.
Exante Data founder Jens Nordvig, in new comments, says we’ve “seen the peak in WFH,” after originally marveling at the extent to which businesses evolved to handle the new challenges. Some businesses, his included, actually performed many functions better remotely. He even went so far to say that it was a “wake-up call” for dense cities that suffer high costs.
But he’s “hearing more” from staff longing for “normal” office environment, better learning and mentoring. It’s a tough toll for those living alone, too. His clients are seeing challenges in managing their teams, and that those same teams are struggling for motivation and suffering discontent.
He doesn’t expect those with large commutes to get back to it quickly, but those within biking, walking range definitely will get back faster. On NYC especially, he said this has implications for real estate values, as there are signs it is “coming back to life,” albeit slowly.
He notes we are likely past the “peak shock” for the urban centers, and rather than the effects being unidirectional, the negative impacts from work-from-home are starting to turn the tide, he concluded.
Some of the most prominent stocks to benefit have been video conferencing and remote tools, like Zoom (NASDAQ:ZM), Fastly (NYSE:FSLY) and Citrix (NASDAQ:CTXS). Other stay at home favorites included Peloton (NASDAQ:PTON), Crowdstrike Holdings (NASDAQ:CRWD), Wayfair (NYSE:W), Chewy (NYSE:CHWY) and Blue Apron (NYSE:APRN). NYC real estate names that have taken the brunt of selling have included SL Green (NYSE:SLG), Boston Properties (NYSE:BXP) and Vornado (NYSE:VNO). There’s also a work from home ETF from Direxion (NYSEARCA:WFH).
In mid-July, a bear on Zoom stock said the tailwinds were over. Baird in late July also discussed the trends and how they were impacting cloud companies.
Just last week, reports were that NYC landlords were pleading with large businesses to bring employees back. See the news here.