If You Invested $1,000 In Ideanomics Stock One Year Ago, Here's How Much You'd Have Now

Investors who have owned stocks in the past year have generally experienced some big gains. But there is no question some big-name stocks performed better than others along the way.

Ideanomics’s Big Run: One company that has been a rollercoaster investment in the past year has been electric vehicle and fintech services stock Ideanomics Inc IDEX.

Ideanomics is a far cry from some of the fresh new EV and fintech startup stocks that have collectively rallied over the past year. In fact, Ideanomics was founded way back in 2004 as China Broadband, and it has gone through eight different name and identity changes in the past 17 years.

Ideanomics is also still not profitable after 17 years, and net losses have increased significantly since 2017. The stock also trades at an eye-popping 42 times sales, suggesting investors have some extremely high expectations for the small-cap stock.

Since the beginning of 2020, Ideanomics has been busy raising capital and investing in multiple businesses. Two of its latest acquisitions were wireless charging startup WAVE and title and settlement provider Timios, two deals that cost the company a combined $90 billion. In March, Ideanomics announced a $150 million at-the-market offering to raise additional capital.

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In 2020, Ideanomics reported $26.7 million in revenue, a 39.9% year-over-year drop. It also reported a net loss of $98.2 million.

At the beginning of 2020, Ideanomics shares were trading at 85 cents. By the beginning of March, the stock was down to 36 cents as news of the coronavirus spreading in China prompted concerns about a U.S. pandemic. On March 6, Ideanomics shares dropped all the way down to 28 cents in intraday trading, its low point of the pandemic.

Fortunately for Ideanomics investors, the stock rebounded along with the rest of the market in the weeks that followed.

Ideanomics shares hit $1 in early June, but the rally was just getting started. The stock made it to $3.98 later that month before stalling out for several months.

Ideanomics In 2021, Beyond: Ideanomics shares eventually made it as high as $5.53 in February 2021. Unfortunately, a market rotation out of unprofitable growth stocks and into value stocks hit the alternative energy group hard. Over the last three months, Ideanomics shares have given up much of their gains and now trade at just $2.77.

Still, Ideanomics investors who bought one year ago and held on through an extremely turbulent year have now generated a huge return on their investment. In fact, $1,000 in Ideanomics stock bought on May 20, 2020, would be worth about $6,101 today.

Looking ahead, Roth Capital is expecting Ideanomics to bounce back in the next 12 months. In April, Roth initiated coverage of Ideanomics with a Buy rating and $7 price target, suggesting 155% upside from current levels.

The BYD D1 electric vehicle. Photo courtesy of Ideanomics.