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.
Zoom Video's Bumpy Road: One company that has seen dramatic ups and downs over the past two years has been work-from-home play Zoom Video Communications Inc (NASDAQ:ZM).
On Feb 3, 2020, the U.S. officially declared a public health emergency from COVID-19. That very day, Zoom shares dropped to $77.51 in intraday trading, their low point of the pandemic.
Fortunately for Zoom investors, the 2020 pandemic may end up being the greatest bullish catalyst of all time for Zoom’s business. When quarantine and social distancing measures were implemented in early 2020, all professional and personal communications were forced online. Zoom’s video conferencing software was at the epicenter of a boom in remote work software demand.
At the start of 2020, Zoom shares were trading at around $69. By the beginning of March, the stock was already up to $109 after news of the coronavirus spreading in China prompted concerns about a U.S. pandemic.
When the S&P 500 bottomed on March 23, 2020, Zoom shares were doing just fine, trading at $142.
By June 2, 2020, Zoom shares were above $200 for the first time, and they ultimately hit an all-time high of $588.84 in October of that year. Zoom’s market cap crossed $140 billion, which made it more valuable than Exxon Mobil Corporation (NYSE:XOM) at the time.
Zoom Video In 2022, Beyond: Unfortunately, the bottom fell out of Zoom shares as post-pandemic growth numbers disappointed the market, and today the stock is trading all the way back down at $120.15.
Still, investors who bought Zoom Video stock the day the COVID-19 national emergency was declared and held on have generated a sizable return on their investment. In fact, $1,000 in Zoom Video stock bought on Feb. 3, 2020, would be worth about $1,333 today.
Looking ahead, analysts are expecting Zoom Video’s stock to recover some of its losses in the next 12 months. The average price target among the 25 analysts covering the stock is $165, suggesting 37.3% upside from current levels.
