Investors who bought stocks during the COVID-19 market crash in 2020 have generally experienced some big gains in the past two years. But there is no question some big-name stocks performed better than others since the pandemic bottom.
Uber's Bumpy Ride: One company that has been a solid investment in the past two years has been ride-hailing giant Uber Technologies Inc (NYSE: NYSE:UBER).
The transportation industry was hit hard by the COVID-19 pandemic in 2020. Fortunately for Uber investors, the company was relatively well-positioned to weather the storm.
Economic shutdowns, travel restrictions and quarantines crushed the mobility business. Fortunately for Uber, the company took the opportunity to lean into its Uber Eats food delivery service, which was the perfect fit for a pandemic backdrop.
At the beginning of 2020, Uber shares were trading at $29.94. By the beginning of March, the stock was up to $34.05 despite news of the coronavirus spreading in China prompting concerns about a U.S. pandemic.
Uber bottomed at $13.71 during the pandemic-driven March sell-off. Fortunately for Uber investors, the dip did not last long.
In November 2020, Uber scored a big victory in California when voters approved Proposition 22, which allows Uber drivers to continue to be classified as independent contractors rather than employees. Uber didn’t get so lucky in the UK, where a court ruled in February 2021 that its drivers should be classified as employees and are entitled to all the associated rights and benefits.
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Uber In 2021 And 2022, Beyond: Following the Prop 22 vote in November, Uber shares were back at new all-time highs above $50 and the stock got as high as $64.05 in February 2021 around the time of the UK ruling. Uber has since pulled all the way back down to around $21.91.
Still, investors who bought Uber on the day it hit its 2020 pandemic low and held on have generated a positive return on their investment. In fact, $1,000 in Uber stock bought on March 18, 2020, would be worth about $1,476 today.
Looking ahead, analysts are expecting Uber stock to rebound in the next 12 months. The average price target among the 39 analysts covering the stock is $50, suggesting 129.4% upside from current levels.
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