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Economies around the world were hit hard by the COVID-19 pandemic, which limited international trade and forced many companies to close their doors temporarily or permanently.
The shock led to the fastest stock market crash in financial history and the largest since the Wall Street crash of 1929, which paved the way for the Great Depression.
Fortunately, this came to an end on April 7 and stock indices began to show a significant recovery after the first wave of COVID-19 began to subside.
However, tech and technology-related companies were some of the main beneficiaries of the pandemic.
With many people forced to work from home, the crisis led to increased demand for computers, software, and other technologies.
Furthermore, the need to communicate effectively over long distances necessitated the need to improve communication and network technologies.
Higher earnings
Several tech companies saw their stock price skyrocket to more than 100% of its value a year ago.
Online traffic jumped to levels never seen before, providing a revenue boost for hosting companies like Cloudflare.
Video conferencing software became an essential tool for maintaining communication between businesses and families, resulting in a huge increase for platforms like Zoom.
Chipmakers such as AMD and Nvidia were bolstered by major product launches and acquisitions thanks to increased demand for high-performance hardware.
Less related to the pandemic was the astronomical rise in Tesla, which is now worth more than many of the world’s largest automakers combined: Volkswagen, Toyota, Nissan, Hyundai, GM, Ford, Honda, Fiat Chrysler, and Peugeot.
What sets it apart from the competition is its focus on research and innovation that has helped it build class-leading battery electric technology.
The company’s cars have proven to be so popular that they have repeatedly exceeded earnings estimates, and due to his majority stake in Tesla, CEO Elon Musk is currently the second-richest man in the world.
If you had the luck or the intelligence to buy shares in one of these companies in December 2019, you would have doubled your investment at the same time this year.
The charts below show how stocks fared for AMD, Cloudflare, Nvidia, Tesla and Zoom for the entire year.
The prices indicated are for markets that close between December 16, 2019 and December 14, 2020.
AMD: up to 126%
Cloudflare: up to 350%
Nvidia: up to 136%
Tesla: 742% increase
Zoom: up to 500%
Now Read: Bloodbath in South African Small Business Jobs During Shutdown
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