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.
Microsoft's Big Run: One company that has been a solid investment in the past two years has been professional software and cloud services giant Microsoft Corporation (NASDAQ:MSFT).
Fortunately for Microsoft investors, the COVID-19 pandemic actually boosted demand for Microsoft’s cloud services, remote work professional software and video game hardware and services.
At the beginning of 2020, Microsoft shares were trading at around $159. By the beginning of March, the stock was up to $165 despite news of the coronavirus spreading in China prompting concerns about a U.S. pandemic.
Microsoft ultimately bottomed at $132.52 during the pandemic-driven March sell-off. Fortunately for Microsoft investors, the dip did not last long. By June, Microsoft shares were back at new all-time highs above $190.
Unfortunately, while the rest of the market was making new highs in the second half of 2020, Microsoft was trading mostly sideways in a wide range of around $200 to around $230, though with a high of $232.86 in September.
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Microsoft In 2021, 2022, Beyond: Microsoft finally broke out to new highs in January 2021 and eventually made it as high as $349.67 in November. The company announced its largest acquisition in history in January 2022, a $68.7 billion buyout of video game developer Activision Blizzard, Inc. (NASDAQ:ATVI).
Since the deal was announced, Microsoft shares have pulled back to around $290.82.
Still, investors who bought Microsoft on the day it hit its pandemic low and held on have generated a positive return on their investment. In fact, $1,000 in Microsoft stock bought on March 23, 2020, would be worth about $2,224 today, assuming reinvested dividends.
Looking ahead, analysts are expecting Microsoft stock to gain more ground in the next 12 months. The average price target among the 37 analysts covering the stock is $370, suggesting 27.3% upside from current levels.
