Which stocks benefit each time
"Stay at home" stocks : Which stocks could be used to make a profit in the Corona crisis?
All over the world, people are currently being called upon to stay at home. Some companies benefit from it - and so do investors through stocks. With most of them, however, you have to look carefully to see whether they are actually a good investment. An overview.
Hundreds of thousands around the world are currently buying important everyday goods, such as household and hygiene items from toothpaste to dog food, as well as over-the-counter medicines, no longer in supermarkets, pharmacies or local drugstores, but from amazon. The Seattle-based online retailer also benefits from its streaming service Prime Video and its grocery delivery service Amazon Fresh, which is only available in some locations. The online retailer advertised 100,000 new jobs during the corona crisis in order to cope with the rush. In the USA, Canada and Europe, hourly wages for employees are also set to rise. In parallel with the recent boom in demand, Amazon is also benefiting from the significant drop in oil prices.
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The market is still puzzling as to which plus will end up on the Group's balance sheets: Amazon's shares have also followed the latest market turmoil in the past four weeks. After an all-time high on February 19 at 2009 euros, the paper fell in the crash to 1480 euros. With a minus of 26 percent, the share remained below the losses of other large tech companies.
For two weeks now, the optimists have had the upper hand again. The share recovered to 1865 euros. Nobody knows whether customers will switch to having their apples delivered online instead of checking them in the supermarket themselves, not just briefly, but over the long term. Analysts are already expecting significantly higher sales for the first quarter of 2020. However, the online retailer had already pulverized Wall Street's expectations in the previous quarter and reported a 21 percent increase in sales. Profits did not rise to the same extent because of high investments. And: Amazon is even quoting at the currently lower price level for 2020 with a price-earnings ratio of 63. This means that the online group is three times as expensive as Google's parent company Alphabet. In addition, interrupted supply chains and sick staff represent a business risk.
Just at the right time, Disney launched its new streaming service in Germany and other European countries. That makes the share rise - but before that it slumped so badly that all profits since 2015 have been wiped out. The reason: The entertainment company's non-virtual business is suffering from the global shutdown. The major theme and amusement parks are closed. The Group's own sports channel group ESPN will soon reach 100 million households in normal times.
But sport and thus sport reporting are paralyzed. Cinemas and the film industry have practically no turnover. The hopes that are now resting on the Disney + streaming service are correspondingly high. Especially in Corona times, when people are tied to the house, Disney's range of films could steal customers from the competition from Amazon and Netflix and increase revenues. In the USA, the streaming service is said to have gained around 30 million subscribers in February. The low market launch price with which the company undercut the competition from Netflix, but above all because of the Star Wars series produced by Disney +, helped. The Mandalorian ".
Netflix should also benefit from the fact that millions and millions of people are in quarantine or fixed on the sofa at home for a few weeks. The streaming service generated a total of $ 20.2 billion with its offers in 2019 and gained 167 million subscribers.
Unlike Disney, the US company has already made a name for itself among streaming fans. Most recently, the company set up a $ 100 million aid fund to support employees in film and series productions who are currently unable to work due to Corona. The company has hundreds of millions of its own series and films produced each year, which can only be seen on Netflix. The shooting is currently suspended many times. In the latest crash, Netflix shares also crashed, but not nearly as badly as other stocks.
Cooking healthily, but without shopping in the supermarket, but with supplied ingredients and recipes: the business model of the Berlin company Hellofresh fits perfectly in the coronavirus crisis. In any case, the virus will not have a negative effect on business, says the food supplier. Whether the crisis can top the sales growth of last year (by 37 percent to 1.8 billion euros) must remain open for the time being.
So far, Hellofresh's expectations have been a plus of 22 to 27 percent for 2020. Analysts such as Julien Roch from Barclay’s see the paper that has just been promoted to the MDax as a typical “stay at home share” with conceivable dynamic increases in earnings. Nevertheless, the paper has had a true roller coaster ride on the course. Plus, with a price / earnings ratio of 120, it's not cheap.
Teamviewer also helps because so many people are currently working from home. The company, which is listed in the M-Dax, offers software for video conferencing and remote maintenance: if something does not work on the laptop, for example, an IT expert can remotely correct the error. The high demand for this service has seen the company's stock rise. In addition to the small shareholders, the financial investor Permira also benefits from this.
He bought the company in 2014 and only went public last September. The investor already used the sharp rise in the share price at the beginning of March to reduce its stake in the company: Permira threw 22 million shares on the market, earning around 700 million euros. Nevertheless, he still holds the majority in the company with 51.5 percent.
The office chat service Slack, which only went public in June 2019, could also benefit from the trend towards home offices - because virtual communication is now more important than before. However: Many companies initially only use free basic and trial versions. It remains to be seen whether they will become permanently paying subscribers in the corona crisis with increasingly difficult business in their own house.
For the first quarter, Slack expects sales that should increase significantly, but are more at the lower end of analyst expectations. You are “with the right product on the market at the right time,” says Slack boss Stewart Butterfield. However, it is unclear whether increased home office due to Corona could increase business beyond expectations. So far, the share has basically followed the market.
In times of corona, meetings and conferences must increasingly be moved to the virtual. The video conferencing app Zoom often comes into play here. Anyone who had Zoom Video Communications shares in their depot before the general market crash was completely spared any losses: on February 19, the day when both the Dow Jones and Dax had reached new all-time highs, Zoom was quoted at $ 104. By earlier this week, the stock shot up to $ 160 before profit-taking began. With a price / earnings ratio of 282, the company is currently valued very ambitiously. Similar to Slack, Zoom also admitted that it was impossible to say whether the coronavirus crisis would actually lead to increasing income. The basic version of Zoom is also free of charge: the service is only switched off after 40 minutes.
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