What happened 

Shares of Vail Resorts (NYSE:MTN) jumped 16% in May, according to data provided by S&P Global Market Intelligence, recovering some of what the stock lost in March and April. But even after the gain, shares are down 18% for the year. 

So what 

May was a quiet month for Vail Resorts, but for the market overall it was eventful. Investors piled back into stocks in anticipation of the economy reopening and hopefully a strong recovery. Not surprisingly, a stock like Vail Resorts, which was hit hard during COVID-19 shutdowns, has performed well during the market bounce. 

Skier jumping off small cliff on a mountain.

Image source: Getty Images.

On June 4, we did get a glimpse of the first quarter of 2020, which ended on April 30, and it wasn't good. Revenue was down 27.5% to $694.1 million, and net income fell by 47.8% to $152.5 million. Given that resorts were shut down on March 15, it's remarkable that results weren't even worse. 

Now what 

There will be a lasting impact on business for Vail Resorts because last year's season-pass holders will be offered a discount for next season as a result of the early shutdown. But there's been some positive news now that we know COVID-19 is less likely to spread outdoors, where most of Vail's activities take place. 

It's still uncertain how quickly travel and consumer discretionary stocks will recover given the fact that COVID-19 is likely still going to be around when winter ski season starts again. But the fact that the economy and resorts are reopening was welcome news for investors last month. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.