Pandemic Era Profitable Companies Lose 1.5 Trillion in Market Value

Tesla and BYD

Fifty corporations that thrived during the coronavirus pandemic have collectively lost approximately $1.5 trillion in market value since the close of 2020, as investors shift away from many of the stocks that surged during the early lockdowns.

Data from S&P Global reveals that technology firms dominate the list of these 50 companies, all valued at over $10 billion, which experienced significant gains in 2020.

However, since the end of 2020, these pandemic-era winners have lost over a third of their combined market value, amounting to $1.5 trillion, according to calculations.

For instance, Zoom, the video-conferencing company, saw its shares skyrocket by as much as 765 percent in 2020 as remote work became prevalent. However, its stock has since plummeted by about 80 percent, resulting in a market value decline of over $77 billion.

Tesla and RingCentral

Similarly, RingCentral, a cloud-based communications firm that surged during the remote work trend of 2020, has shed approximately 90 percent of its value as it contends with competition from tech giants like Alphabet and Microsoft.

Exercise bike manufacturer Peloton is another major loser, with its shares plummeting by over 97 percent since the end of 2020, translating to a market value loss of about $43 billion. The company recently announced the departure of its CEO and plans to reduce its workforce by 15 percent as part of cost-saving measures.

These losses reflect a reversal of trends accelerated by the pandemic, such as increased videoconferencing and online shopping. As workers return to offices and factors like high interest rates and living costs impact e-commerce demand, the durability of these trends has come into question.

S&P Global and Zoom

In terms of percentage gains, Tesla was the standout winner of 2020, with its market value skyrocketing by 787 percent. However, it has since dipped back to $589 billion from a peak of $669 billion.

Other companies, such as Sea and various e-commerce groups, initially experienced significant growth but have since suffered substantial losses. Meanwhile, vaccine makers like Pfizer, which saw gains in 2020 due to vaccine hopes, have now erased those gains as concerns about demand for vaccines persist.

Only seven of the 50 top corporate winners of 2020 have seen gains in market value, including companies like Chinese carmaker BYD and cybersecurity group CrowdStrike.

Nate O'Hara
Nathan is a seasoned commerce writer with a passion for unraveling the intricacies of the business world and distilling them into engaging narratives. During his academic journey, he delved deep into subjects like economics, marketing, and entrepreneurship, honing his analytical skills and developing a keen understanding of market dynamics.