Amazon Beats Major Indexes & Recovers Nearly 50% of Lost Value On Open Market

Apr 4, 2020
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The outbreak of coronavirus (COVID-19) and the resulting global economic paralysis sapped investor confidence as markets crashed and lost roughly one-third of their value over the course of a month. At the close of trading yesterday, major U.S. stock indexes continued their downward trend, nudged by the rising casualties from the virus in the world's only superpower.

Yet, even as markets fall, not all companies have mirrored the drop. One company, in particular, Amazon.com, Inc (NASDAQ:AMZN), has. weathered the storm as populations in America and other countries turn to online retailing to meet their basic needs at this time of crisis. The market it seems has recognized Amazon's relevance as the company has done quite well in terms of recovering lost capitalization since the drop that commenced on February, 19th 2020 reveals analysis conducted by Wccftech.

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Amazon Has Recovered Roughly 50% of Its Value On The Stock Market Since The Coronavirus Crash of February

At a time when most businesses, big and small, have either contemplated, conducted or are considering layoffs, Amazon is one company that is hiring more workers. The retail behemoth whose founder Jeff Bezos is the world's richest man in terms of net worth is facing a shortage of staff as it is forced to deal with an increase in demand from private and public customers for delivering essentials and healthcare supplies.

Naturally, this uptick in demand has also translated into positive performance on the stock market at a time when major indexes are whimpering. Our analysis reveals that following the market-wide sell-off that commenced in February, Amazon has recovered 45% of its value on the market as of its closing price of $1906.59 yesterday.

Amazon.com, Inc ($) 02/19/20 03/16/20 04/03/20
Closing: 2170 1689 1906
Total Drop: 481
Recovered: 217
%: 45%

 

Amazon's shares closed at a price of $2,170/share on February 19th, as the retailer seemed to have recovered from the slump it fell into in 2018. But, within the course of a month, the company lost 22% of its value on the open market as it closed on a low price of $1,689/share on March 16th.

Since then, analysis reveals that the stock has recovered 45% of this drop based on its closing price of $1,906/share on Friday. This recovery leads all major indexes in the United States, as it goes to show the potential of online retailing at a time of crisis in which populations all around the globe have been forced to retreat indoors.

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Comparing Amazon's performance and recovery with that of the NASDAQ-100 stock index shows that the retailer leads the index by 25% in terms of value recovered.

NASDAQ-100 02/19/20 03/20/20 04/03/20
Close: 9719 6994 7528
Total Drop: 2725
Recovered: 534
%: 20%

Online retailer beats major stock indexes in recovering lost value since the coronavirus crash

The NASDAQ-100 closed with a value of 9,719 points on February 19th and tanked to its low value of 6,994 points on March 20th. Since then, the index has recovered 20% of this drop based on its closing value of 7,528 on Friday and lagging behind Amazon.

This index is not the only one recovering at a snail's pace. Drops of both the Standard and Poor 500 stock index and the NASDAQ Composite stock index paint a similar picture and show that Amazon is one of those few companies in which investors have not lost confidence. Taking a look at the S&P 500 reveals that the index has fared slightly better than the NASDAQ-100 by recovering 22% of its value since the coronavirus drop:

S&P500 02/19/20 03/23/20 04/03/20
Close: 3386 2237 2489
Total Drop: 1149
Recovered: 252
%: 22%

Finally, and unsurprisingly, the NASDAQ Composite is the worst faring index included in our analysis today, as it has managed to recover only a paltry 17% of its value since the coronavirus crash. Analysis reveals that on February 19th, the index closed in at 9,817 points and dropped by a staggering 2,956 points to 6,861 points on March 23rd.

Since then, based on its closing value on Friday, the NASDAQ Composite has recovered only 512 points of this roughly 3,000 point drop, making for a 17% recovery and lagging behind Amazon by 28 percentage points.

NASDAQ-COMPOSITE 02/19/20 03/23/20 04/03/20
Close: 9817 6861 7373
Total Drop: 2956
Recovered: 512
%: 17%

All-in-all, looking at current trends, it's unlikely that markets will show a strong recovery similar to the one exhibited in the days between March 23rd and March 26th. State and countrywide lockdowns have paralyzed economic activity and hospitals are waging a battle against the coronavirus with shortages of medical equipment.

Until the situation on this end stabilizes, and governments deem it safe to allow an end to the lockdowns, investors are unlikely to return to markets. However, for those who invested in Amazon, it looks like they made the right call.

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