The economic recovery that followed the Great Recession was slow and steady. The second dip, or what we call the “instant COVID-19 recession,” came swiftly and unexpectedly. It resulted from the massive sell-off in crude oil that took place when OPEC production increased above demand.
News of the recession boosted shares in insurance companies and weapons makers, as investors predicted that demand in both sectors would rise sharply as conditions became more dangerous.
Most investors agree that, except insurance companies and perhaps weapons manufacturers, few businesses benefited from the worsening conditions, especially in the United States, where the recession’s severity was unprecedented. Despite the panic selling in early 2020, most stocks eventually returned to their normal cyclical levels by mid-to-late 2020. Following are the top gainers during the pandemic recession
Top gainers During the Pandemic
Activision Blizzard
Gain: 20%
Activision Blizzard is a premier global publisher delivering high-quality games and content to a range of connected devices. Known for the billion-dollar franchises “Call of Duty” and “Skylanders,” the company’s key franchises include “World of Warcraft,” “Overwatch,” “Hearthstone,” and “Candy Crush.”
Amazon
Gain: 27%
The company is constantly growing its infrastructure business, which is a growing revenue source. The data centers that support AWS have been increasing the number of facilities for the cloud service and are continuing to do so. Second-quarter results showed a 27 percent year-over-year rise in capital expenditures, amounting to $2.4 billion, putting total AWS operation spending at $3.7 billion over the last 12 months.
Citrix Systems
Gain: 32%
Citrix products couldn’t be more ideal for a workforce that spends more time at home, providing more gain to the company. With Citrix, desktops can be virtualized, and lightweight apps can run only when needed or desired, like delivering an app that gives workers access to information directly from their phones. Plus, with Citrix GoToMeeting, employees don’t even need to be in the office to collaborate. We’re all about increasing productivity.
Citrix provides virtualization and application delivery products and solutions that simplify technology for IT, increase workforce productivity, and solve business challenges.
Datadog
Gain: 80%
Datadog [DOOG] hit a post-IPO high yesterday, and the market cap has tripled since its IPO last November. The company’s cloud-based software keeps tabs on around 25,000 customers and records more than 100 billion data points daily. Datadog lets customers analyze their application performance to find bugs, resolve issues, and improve overall performance from development to production.
Docusign
Gain: 60%
DocuSign gives you the most versatile, secure, and efficient way to sign and manage a broad range of documents, including contracts, agreements, and e-applications. And we’re continuously innovating so you can always experience best-in-class security and mobile delivery for your critical business communications. Plus, DocuSign’s free online tool allows anyone to securely sign documents in under one minute from virtually any device.
The five industries most affected by COVID-19 over the period January 2, 2020, to January 15, 2022, included: Airlines; Automobiles; Energy Equipment & Services; Hotels, Restaurants & Leisure; and, Specialty Retail. However, professional property management service rise rapidally after pandamic.
Conclusion
Investing during an economic downturn makes sense because valuations are lower. The reason is that people are nervous about the economy and will vote with their pocketbooks by selling down risk before they start to sell down their necessities.
