At any point in time, the market value of a firm’s common stock depends on many factors

Chevron Corporation Stock’s performance

            Chevron Corporation is an international energy company operating in over 180 countries, with its headquarter in San Ramon city, California, in the United States.  The company deals with the production of all aspects of natural gas and oils. For the past year, Chevron cooperation stock price has been declining due to harsh economic times brought about by the COVID-19. The trend is expected to continue for a while until the pandemic is extensively managed. With the restriction of movement in various countries, the company's profit has been limited due to low demand for the products. According to the statistical stock performance, over the past year, the company's stock price has dropped from $118.79  to $110.30 (Roxana, 2020).In the past ten months, the company's stock price dropped to the lowest price of $92.14 (Roxana, 2020). The possible factors contributing to the valleys and peaks of Chevron Coop oration stock price are the COVID-19 pandemic and the demand for chevron shares. The need for the Chevron shares reduced with the increase of the COVID-19 pandemic, which created fear among the potential investors in the company.

The statistical information obtained regarding Chevron's stock price shows that Chevron is now selling more of its shares to raise enough money for its operations. The company share is cheaper and easier to acquire than last year because of the decrease in the stock’s price. The reduction of the company’s stock price has attracted many investors who buy them, hoping for a stock price increase in the future. The company is likely to reduce its profits if it sells more of its shares on the stock exchange since most of its profit may be channelled towards the payment of dividends on the shares purchased (Lv, Lien & Yu, 2020). This may affect the company in the long run as it may lack funds to run its operations effectively.

The company is at a very high risk financially. From the findings highlighted, Chevron cooperation has increased the probability of borrowing money in the future to continue its operations effectively. The covid-19 pandemic outbreak started in January 2021, and it has not been effectively managed, therefore decreasing company profits (Ahelegbey, Cerchiello & Scaramozzino, 2021).  Since the company will lose many profits in paying dividends, they will only be compelled to taking up the loans.  As the Coronavirus continues to mutate and affect people worldwide, forcing governments to instil restrictions, the stock price is likely to decline to much lower levels again. The uncertainty of the COVID 19 pandemic pushes away potential company investors. Most of the investor’s belief that the shares' price will fluctuate until COVID 19 is effectively managed and possibly eliminated from the world, just like other major outbreaks like the Spanish flu. Majority of buyers bought the stocks when it was at its lowest level, which insinuates that shareholders will be the greatest beneficiary.