What Happened to the Pandemic Stocks?

A handful of stocks benefited massively during the pandemic. It was an interesting time to be an investor, to say the least, and those who targeted the stay-at-home stocks were rewarded handsomely with considerable gains.

A few of those stocks include Shopify SHOP and Zoom Video Communications ZM. But now that the excitement has long faded, what’s been going on with these companies?

Let’s take a closer look at each.

Shopify

Shopify’s platform gained widespread attention during the period as consumers increasingly shifted to online shopping. To little surprise, the digital trend has continued to only get more popular, providing the company with serious growth since.  

And its earnings results have helped reinforce the idea, which have regularly been strong over recent periods. Sales grew 31% year-over-year throughout its latest period, with SHOP posting double-digit percentage YoY sales growth in ten consecutive periods.

Below is a chart illustrating the company’s sales on a quarterly basis.

Zoom Video Communications

Zoom Video Communications’ cloud-native unified communications platform combines video, audio, phone, screen sharing, and chat functionalities. It’s easy to understand why shares gained popularity during that period, as many were forced onto the platform for both personal professional reasons.

Sales exploded during the pandemic before leveling off significantly over recent years.

ZM’s sales grew by nearly 5% from the year-ago period in its latest release, with adjusted EPS of $1.53 climbing 10% year-over-year.

Bottom Line

While stocks such as Shopify SHOP and Zoom Video Communications ZM were widely hailed during the pandemic, the attention since has drastically reduced.  

Shopify has, and remains, the true leader of the group concerning overall performance and fundamentals. The company hasn’t struggled post-pandemic like others, with the staying power of online shopping driving the positivity. 

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research