In response to a largely successful COVID-19 vaccination drive so far, many companies are now planning to reopen their offices—at least to allow some employees to work partly from company offices. Given this backdrop, we believe popular work-from-home stocks Zoom (ZM), DocuSign (NASDAQ:DOCU), and Slack (WORK) could witness a retreat in the near term. Hence, we think these names are best avoided now.Easing pandemic restrictions and the consequent resumption of economic activities are causing some employees to return to their offices after prolonged remote working.
However, the ongoing digitalization of various industries has made business operations efficient and workers more productive over the past year. So, while enterprises may not be willing to totally return to pre-pandemic work arrangements, thereby sacrificing the benefits of remote working, many are resuming work from office for at least some percentage of their workforce as part of their long-term plans to operate through hybrid working models.
Therefore, popular work-from-home stocks Zoom Video Communications , Inc. (NASDAQ:ZM), DocuSign, Inc. (DOCU), and Slack Technologies, Inc. (NYSE:WORK) could retreat in the near-term because of reduced demand for their solutions. So, we think these stocks are best avoided now.