Pandemic Stocks Revisited: Shopify, Zoom's Performance

Shopify (SHOP) and Zoom Video Communications (ZM) stocks benefited significantly during the pandemic. SHOP has outperformed over the last year, while ZM's performance matched the S&P 500. Both companies have strong earnings results, with SHOP posting double-digit YoY sales growth in ten consecutive periods and ZM's sales growing by nearly 5% in its latest release. Shopify's EPS outlook for its current fiscal year remains positive, while ZM's EPS expectations are up nearly 40% over the last year.

The pandemic has significantly impacted the performance of e-commerce and video collaboration stocks. Shopify (SHOP) and Zoom Video Communications (ZM) have both benefited from the shift to online operations, though their recent performances vary. This article examines their stock performances and earnings results, providing a neutral, objective analysis for investors and financial professionals.

Shopify's Stock Performance and Earnings

Shopify's stock has outperformed over the last year, with a significant 22% increase following its Q2 2025 earnings report [1]. The stock has retreated since then but remains up by more than 80% over the last year. Shopify's growth is driven by its platform's ease of use, speed, and comprehensive ecosystem, which includes ancillary tasks like payments, email marketing, and AI tools.

Financially, Shopify generated nearly $163 billion in gross merchandise volume in the first half of 2025, with revenue growing by 29% year-over-year (YoY) [1]. Operating income rose by 51%, but net income was $224 million, an improvement from the $102 million loss in the same period last year. The company forecasts revenue growth of a mid-to-high-20s percentage rate for the current fiscal year.

Zoom's Stock Performance and Earnings

Zoom's stock performance has matched the S&P 500 over the last year, with a 0.4% decrease year-to-date (YTD) [2]. However, Zoom's latest earnings report showed sales growth of nearly 5% in its second quarter of fiscal 2026 [2]. The company's AI initiatives, such as AI Companion and Zoom Workplace, are driving adoption and growth.

Zoom's earnings per share (EPS) expectations have increased by nearly 40% over the last year [2]. The company's strong video-first design and reliable collaboration tools have supported its growth, with revenue rising by 4.7% YoY in the second quarter of fiscal 2026.

Conclusion

Both Shopify and Zoom have shown strong earnings results, with Shopify posting double-digit YoY sales growth in ten consecutive periods and Zoom's sales growing by nearly 5% in its latest release. Shopify's stock has outperformed, while Zoom's performance has matched the S&P 500. Both companies' EPS outlooks remain positive, with Shopify's outlook remaining positive and Zoom's EPS expectations up nearly 40% over the last year.

Investors should carefully consider the valuation of these stocks. Shopify's P/E ratio is around 70, and its P/S ratio is 18, indicating a pricey stock. Zoom's stock is also overvalued, with a P/S ratio of 15.2. However, both companies' growth prospects and AI initiatives suggest potential upside.

References

[1] https://www.aol.com/shopify-stock-popped-22-earnings-092500866.html
[2] https://www.nasdaq.com/articles/zm-vs-msft-which-video-collaboration-stock-has-more-upside