As markets tank around the world in response to the Coronavirus pandemic, investors are looking for stocks to buy right now because prices have gotten cheap.
While the global lockdown has shut off revenue for lots of companies, there are a few companies who will see demand and revenue for their products/services skyrocket.
All of that attention & income must go somewhere as people stay in their homes and wait out the virus.
With so much downtime in their homes, many people will turn to Netflix for their entertainment needs. Much of Netflix's growth will come from international markets (especially Europe & Asia) who are dealing with citywide lockdowns. Netflix could see a nice boost in subscribers and continue posting record revenue during the COVID-19 crisis.
With jobs & school lockdowns, Facebook should experience a massive boost in usage during the Coronavirus outbreak. Communication becomes key at times like this and the company could see a boost in new members who will use the social network to keep in touch with friends and family. Even myself, I have used Facebook a lot more during the lockdown as a way of keeping in touch with friends. I normally don't use Facebook much but there isn't much choice during these times.
The Retail apolcayse has gotten worse for many retailers who will probably close their doors for good. On the other hand, Amazon has experienced a massive surge in orders and recently hired 100,000 new workers to meet demand. With a market cap of just under $1 trillion, this could be the last opportunity to buy Amazon stock at these levels.
Paypal is another digital payment stock that should see a boost in activity during the Coronavirus pandemic. As online e-commerce increases, more people will use Paypal and their p2p payment app, Venmo, to perform transactions online. As we move towards a cashless society, Paypal looks like a good buy target as the P/E ratio continues to fall. Lastly, as more people work from home in the future, Paypal becomes an important asset for freelancers & gig employees who use Paypal's wallet to send and receive payments.
See More: How to Buy Paypal Stock
Just like Netflix, I expect Roku to benefit from more people staying at home streaming their favorite TV shows and movies. Roku has already shown strong usage numbers and watch time before the Coronavirus pandemic so expect those numbers to spike during the next earnings release.
During crisis like these, people stockpile items like food, water and medicine. Walmart is hiring 150,000 temp workers to deal with demand as Americans stock up on essential items. A dividend aristocrat, Walmart continues to move along and should have no problem maintaining their dividend.
The Coronavirus pandemic has forced lots of people to consider working from home to make ends meet. Upwork, the world's largest freelancer website, could benefit from the COVID-19 outbreak as desperate professionals look for ways to earn extra income online. At just $6 per share, this could be a great chance to own a stock that will benefit as we move towards a gig economy.
While Uber rides will take a massive hit in daily active users, I expect Uber Eats to experience a massive boost in signups and gross bookings. People will order a lot more food online since restaurants around the world have banned dine-in customers. It's possible that these new customers will also use Uber Rides as well after the pandemic cools down, adding to Uber's total app installs.
Along with Netflix, Google & Youtube should see a spike in activity as more people stay at home. Google is currently trading at a P/E ratio of 20, making it quite the bargain buy. Advertising spend will decrease as lots of businesses are shut down but Google should rebound nicely once the dust settles.
10. Aurora Cannabis
Canada has allowed Cannabis sellers to remain open during the COVID-19 outbreak, leading to a massive surge in sales. Consumers are stocking up on Cannabis and other related products in case stock runs out. Marijuana use is also something many people do while in isolation. After a terrible 2019 for Cannabis stocks, the Coronavirus could give the entire industry a much needed boost since Cannabis is considered an essential by the government due to its medicinal properties.
Disclosure: I own shares of Netflix, Paypal, Roku, Upwork, Uber and Aurora Cannabis.