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.
Meta's Bumpy Ride: One company that has been a roller coaster investment in the past two years has been social media giant Meta Platforms Inc (NASDAQ:FB).
Fortunately for investors, the COVID-19 pandemic in 2020 was actually very good for 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 social media.
At the beginning of 2020, shares were trading at around $206.75. By the beginning of March, the stock was down to $194.03 as news of the coronavirus spreading in China prompted concerns about a U.S. pandemic.
The stock bottomed at $137.10 on March 18 during the pandemic-driven market sell-off. Fortunately for investors, the dip did not last long.
By the end of May 2020, shares were back at new all-time highs above $220, and the stock got as high as $384.33 in August 2021 before a change in direction for both the stock and the company.
A name change from Facebook to Meta Platforms was announced in November 2021 and the company said it was shifting its priority to developing the metaverse.
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Meta In 2022, Beyond: In February 2022, the stock tanked after Meta reported slowing growth numbers, huge losses tied to its metaverse business and advertising headwinds from changes Apple Inc (NASDAQ:AAPL) made to its privacy policies. Another disappointing earnings report in April has Meta shares trading all the way back down at $213.70.
Still, investors who bought Meta on the day it hit its 2020 pandemic low and held on have generated a positive overall return on their investment. In fact, $1,000 in Meta Platforms' stock bought on March 18, 2020, would be worth about $1,451 today.
Looking ahead, analysts are expecting Meta Platforms' stock to rebound in the next 12 months. The average price target among the 50 analysts covering the stock is $290, suggesting 35.8% upside from current levels.
