Pandemic Bloomers Sink: Tesla, Zoom And Others Shed Billions In Their Value After Covid Era Success

Pandemic Bloomers Sink: Tesla, Zoom And Others Shed Billions In Their Value After Covid Era Success

According to a report, 50 major companies that surged in the pandemic have lost as much as USD 1.5 trillion of their market value since the end of 2020.

Juviraj AnchilUpdated: Friday, May 10, 2024, 12:32 PM IST
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Representative Image | Pexels

The pandemic, which locked down the whole world and brought almost everything to a standstill, had some success stories in the middle of the chaos and peril. Many businesses found opportunity in jeopardy and used the limited circumstances of the pandemic. The likes of Zoom and Tesla made the most visible gains. These companies made the most of the contagion years.

USD 1.5 Trillion Drop in Value

According to a Financial Times report, 50 major companies that surged in the pandemic have lost as much as USD 1.5 trillion of their market value since the end of 2020. The companies that have suffered the most are also the ones, that have gained the most. The tech sector, which was uniquely placed for the pandemic, made the most. Here, the likes of Tesla and Zoom have faired with no remarkable gains over the past 4 years.

 Tesla, which saw a 787.1 per cent surge in its value in 2020, saw a decline of 11.95 per cent thereafter, taking its market capitalisation to USD 589.2 billion.

Tesla, which saw a 787.1 per cent surge in its value in 2020, saw a decline of 11.95 per cent thereafter, taking its market capitalisation to USD 589.2 billion. | Photo: Craig Adderley/ Pexels

Tesla, Zoom Plunge In Value

Tesla, although not a tech company, like Amazon or Alphabet, is treated or has been treated with the sensitivity of a tech company. Zoom, on the other hand, is a textbook tech-firm, that leveraged the system to march miles in the years of lockdowns, connecting people far apart, and turning living rooms into offices.

According to the FT report, Tesla, which saw a 787.1 per cent surge in its value in 2020, saw a decline of 11.95 per cent thereafter, taking its market capitalisation to USD 589.2 billion. Zoom, which saw a 413.0 per cent jump in its value in 2020, saw a massive 80.3 per cent decline, taking its market cap to USD 19.0 billion. Another American company, Pinterest, which had a 291.4 per cent growth in 2020, stumbled by over 30 per cent in the following years. Today, the photo and video sharing platform's value stands at USD 28.3 billion.

Zoom, which saw a 413.0 per cent jump in its value in 2020, saw a massive 80.3 per cent decline, taking its market cap to USD 19.0 billion.

Zoom, which saw a 413.0 per cent jump in its value in 2020, saw a massive 80.3 per cent decline, taking its market cap to USD 19.0 billion. | PIC: pixabay

Pandemic Perks End

The pandemic-era conditions and the loss of the insulated system, which almost achieved the economic condition of 'ceteris paribus', where broadly not a lot of changes are impacted, perhaps exposed these companies to the variegated conditions of the world, which left these companies in the uncertainty of a full-fledged, free-flowing market. The variables of market, demand, and competition appear to have placated these companies and their fortunes.

These companies, and their fortunes in the equity market, understandably, have also taken a hit, Tesla's shares have also declined by 30.77 per cent, just in the past year. This is being attributed to its low sales and low revenues in the past year. Zoom's shares have also slumped by 11.60 per cent since 2023. Pinterest, meanwhile, has gained 17.79 per cent over the past year.

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