Although I only started writing on The Motley Fool at the end of May, the market conditions since then have given an opportunity for stocks to rise quickly. Because of this, I think it would be interesting to look back and see how some companies have performed. In this article, I will take a look at two companies whose stocks have skyrocketed since I first covered them.
The leader in enterprise e-learning
I first covered Docebo (TSX: DCBO) on the fifth of June. Admittedly, I did not know very much about the company at the time, except for what I had written. I was first interested in Docebo because of its strong recovery coming out of the market crash. When I wrote that initial article focusing on the company, it had already risen 145% since hitting its lowest point in March.
I was not sure at the time how much more immediate room for growth the company had. However, I did think Docebo’s business was interesting enough and certainly becoming more essential because of the pandemic. Because of this, I decided to keep following it. Unfortunately, it took me a very long time to start my own position in the company, so I missed out on a very exceptional run. As of this writing, Docebo stock has gained 115% since I first covered it and 425% from its lowest point this year.
Why has Docebo seen such a growth? A quick glance at its business is all you need to see how important its services can be in the future. Docebo offers an online training platform for enterprises. Using its products, training managers can more easily assign and monitor employee training. Because many companies around the world have had to turn to work-from-home structures, Docebo has seen a rise in its customer base.
I believe the recent tailwinds have accelerated Docebo’s adoption, but it should still have a significant growth runway moving forward.
Last year’s hottest IPO
Without a question, Lightspeed (TSX: LSPD) was the growth stock to watch in 2019. At its highest point, Lightspeed stock gained almost 160% before crashing this February. During its lowest point, I was considering entering the stock but was fairly skeptical about it and its potential. I figured the company’s moat was not as strong as I wanted in the companies I hold. I decided to take a flyer on Lightspeed just under the $20 range.
In late March, the company published an announcement explaining the initiatives it had in place to help local businesses. In my mind, this was the turning point for the company. Had it not decided to do this, I think many of its customers would have struggled immensely to keep the lights on. In addition, it showed to investors that Lightspeed is a forward-thinking and innovative company that will do what it takes to keep its customers and shareholders happy.
I first covered Lightspeed on the third of June. Since the market crash, Lightspeed stock had increased 192% until that point. It has increased an additional 36% since. Altogether, Lightspeed stock has gained 296% since hitting its lowest point during the market crash.
Foolish takeaway
So, what was the point of this article? It is no secret that I like discussing high-flying stocks. The two companies in this article had both increased a substantial amount by the time I opened coverage on them.
However, if investors had decided to look deeper into the company and perhaps even open a position in these two companies at that time, then they would be looking back at some extraordinary returns. Do not be afraid of high-flying stocks. In some cases, those companies may still just be lifting off.
