The current COVID-19 recession doomed almost every industry and company in the world. Even after everybody saw it coming, it was still overwhelming to even the best management teams worldwide to give a large hint.
The traders have panic-sold stocks out of fear after COVID-19 hit the world in February-March 2020. This wave itself killed the 11-year bull market in stocks. The mixed response of the stock markets raised major concerns and questions for free stock trading in the mind of investors.
The sentiment in the stock markets across the world is undeniably gloomy. This is reflected in the frequent uncalled crashes in the share markets almost all over the world. Still, you will be surprised to see a few stocks that have thrived even in the worst financial crisis the world has ever seen.
Here is the list of winners who rose dramatically during the pandemic:
1. Datadog (NASDAQ: DDOG)
• YTD Gain: 80%
Datadog Inc. hit a post-IPO high amid COVID-19 in May. The revenues increased by 87% from 2019. Large customers rose to 960, i.e., more than $100K in spending from 508 in the year 2019.
The company launched its security monitoring service to break down the walls separating the three major departments – security, development, and operations. Valuations are based on the broad market analysis, but that’s the price for projecting more than 50% revenue growth even in the storm of recession.
2. Etsy (NASDAQ: ETSY)
• YTD Gain: 78%
Etsy Inc. was an astonishing winner of the COVID-19 recession market. No one could have predicted the making and selling of arts and crafts products to perform at sky-high levels. Etsy did not sound recession-proof at all to anyone. But apparently, the large number of unemployed people were out looking for negotiations to sell crafts and handmade goods.
The potential creators saw a massive new business strategy from exotic handmade face masks that can make people look artsy and unique despite wearing a facial mask. Also, Etsy’s shift to free shipping worked through the difficult scenarios that caused some turbulence at the end of 2019 and the beginning of 2020.
3. DocuSign (NASDAQ: DOCU)
• YTD Gain: 60%
DocuSign Inc. also hit its post-IPO all-time high in the pandemic. The remote electronic signature solution provider has managed to achieve rocket success. The major play of DocuSign extends to the stages of the agreement process, such as preparing, acting on, and managing agreements. Despite real estate slowing down drastically, Docusign performed better than many.
In the practical world, the solution by DocuSign amazed the users in the speed and efficiency of the service. For most of the software-and-application-based service providers in the market, valuations lose priority. For the winners, revenue growth is expected to remain above 25% irrespective of the global recession.
4. Netflix (NASDAQ: NFLX)
• YTD Gain: 33%
Netflix Inc. has proven the expanding room for more than one major streaming platform for the viewers. Despite the impressive growth of Disney+ at affordable and the competition from Apple and Amazon in the market, Netflix has maintained its position for media content.
Netflix still holds a significant scope to grow and capture the market outside the United States. Netflix continued entertaining the viewers by creating some outstanding movies and numerous multi-season series that kept people glued to their screens and hence subscription. The increased use and engagement in the digital world in the pandemic helped the stocks big time.
The smart service pricing ensured that millions of people, even after losing their jobs, restrained from cutting off their Netflix accounts to entertain themselves. Netflix stock rose over 50%, surprisingly since the Disney+ launch.
5. Domino’s Pizza (NYSE: DPZ)
• YTD Gain: 29%
Domino’s Pizza Inc. announced that it would join the S&P 500 after the fall earnings reports were out. Millions of people already had Domino’s applications long before COVID-19 sent everyone home. This advantage sailed the stock even during the COVID-19 scare.
In addition to dominating the pizza delivery sector, Domino’s has been adding a variety of food items to its menu. This gave customers added options and the company a higher margin. The top craved food items like chicken wings, sandwiches, pasta, and desserts offered more than traditional customer expectations.
6. Amazon (NASDAQ: AMZN)
• YTD Gain: 27%
Amazon.com Inc. is winning across borders. The data center growth in AWS gave a complete edge while competing with the physical stores that were either closed or gradually reopening. Even though Amazon might have had sore public relations with warehouse workers, its business boomed in the lockdown.
Shockingly, Amazon hired more than 100,000 employees in the pandemic to function in the major boom. Investors barely bothered that its expenses were way more, and it is sacrificing major margin to build up the company within, where it stands today.
Our analysis suggests that it was not the prevailing conditions of the countries in the pre-COVID-19 world that influenced the performance of stock markets, but rather the policies implemented by the government during the crisis. The macroeconomic policies of the economy aimed to support companies and economic downfall, resulting in the shift of the graph.
During this time in force, it is apparently scary to enter the market for a major correction or growth, but there are a few stocks to rely on. Research the equity or stock market intensively before investing.