Investors who bought stocks during the COVID-19 market crash in 2020 have generally experienced some big gains in the past two years. But there is no question some big-name stocks performed better than others since the pandemic bottom.
Alphabet's Bumpy Ride: Google and YouTube parent company Alphabet, Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) held up relatively well during the pandemic, but a recent downturn in the online advertising business has weighed on the stock.
Fortunately for Alphabet investors, the COVID-19 pandemic in 2020 wasn’t particularly bad for most of Alphabet’s business. While other companies were dealing with economic shutdowns, people around the world who were sheltering in place had little to do for entertainment and social interactions other than browsing the internet and watching videos on YouTube.
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At the beginning of 2020, Alphabet’s Class-A shares were trading at around $1,348. By the beginning of March, the stock was still hovering at around $1,351 as news of the coronavirus spreading in China prompted concerns about a U.S. pandemic.
Alphabet bottomed at $1,008.87 on March 23, 2020, during the pandemic-driven sell-off. Fortunately for Alphabet investors, the dip didn't last long.
By the end of July 2020, Alphabet shares were back at new all-time highs above $1,580, and the stock got as high as $1,726.10 in September prior to an extended consolidation period. At the time, investors were relieved Alphabet’s online advertising business navigated the pandemic relatively well.
Unfortunately, the stock took a hit in September 2020 after the New York Times reported that the Department of Justice and representatives from 50 states and territories were planning to launch an antitrust case against Google.
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Alphabet In 2022, Beyond: Alphabet again broke out to new highs in November 2020 as investors shrugged off the growing regulatory scrutiny.
Alphabet's momentum continued throughout 2021, and the stock ultimately made it to a new all-time high of $3,030.93 in February 2022. Slowing ad revenue growth and a rotation out of tech stocks have weighed on Alphabet shares in recent months. Alphabet completed a 20-to-1 stock split in July 2022 that brought its share price back down to around $105.
Still, investors who bought Alphabet stock the day it hit its 2020 pandemic low and held on have generated a decent return on their investment. In fact, $1,000 in Alphabet stock bought on March 16, 2020, would be worth about $1,993 today.
Looking ahead, analysts are expecting Alphabet stock to rebound in the next 12 months. The average price target among the 44 analysts covering the stock is $143, suggesting 36.4% upside from current levels.
