The coronavirus outbreak has and will likely continue to have a significant negative impact on a variety of industries. While people continue to stay home to avoid getting sick, they still need to go to work, shop for essential items, see their doctors, etc. An increasing number of states are beginning to implement “stay-at-home” orders, which essentially are quarantining procedures.
As a result, more and more companies are turning to virtualization to meet consumer demands. Virtualization is the act of turning a physical process into a virtual process.
For example, platforms like Instacart are seeing incredible demand at the moment as consumers want to stock up on groceries without risking going to a crowded store.
As the outbreak continues, consumers are likely to continue to transition to virtualized platforms for everything from grocery shopping to work to healthcare.
Furthermore, as consumers and companies realize the convenience and efficiency of these platforms, they are likely to continue to use them once the coronavirus outbreak comes to end.
With that in mind, consider keeping an eye on these virtualization stocks that are likely to benefit from people staying home.
Zoom Video Communications, Inc. (NASDAQ: ZM) is a remote video conferencing platform that is most commonly used for things like job interviews, employee meetings, and other similar tasks. As more and more employers are sending their employees to work from home, Zoom is very likely to continue seeing a lot of growth.
Not only is Zoom great for work-related meetings, but it can also be used by students to take classes from home, as universities around the United States continue to cancel in-person classes.
As Zoom continues to grow during the outbreak, users are likely to continue using it after the outbreak, giving Zoom Video great potential for long-term growth.
Teladoc Health, Inc. (NYSE: TDOC) is a platform that allows users to remotely meet with healthcare providers — a service that many are sure to take advantage of in order to avoid the risk of going to see their doctor in person. This includes primary care doctors, mental health experts, and more.
As telehealth platforms are now covered by most insurance plans, it’s likely that many consumers will move to virtual doctor appointments during the coronavirus outbreak.
As with all these platforms, users are likely to realize the efficacy and convenience of telehealth platforms like Teladoc, which means there could be some that continue to use the service even once the pandemic passes.
Slack Technologies, Inc. (NYSE: WORK) is a platform that is likely familiar to you already, as more and more organizations and companies adopt Slack for communication purposes. Slack is a workplace platform designed to help facilitate effective communication and project management.
Just like Zoom Video, Slack stands to benefit greatly from workers staying home during the COVID-19 pandemic. Communication is particularly important when working remotely, making platforms like this ideal for the current climate.
Not only will Slack benefit from increased usage by existing customers, but they will also likely see a major uptick in new customers, as companies look to sign up for digital communications platforms.
Netflix, Inc. (NASDAQ: NFLX) is a staple in millions of households and it’s only going to become more ubiquitous. The reasoning is, of course, obvious enough: people are going to be looking for in-home entertainment in favor of going out, creating a great opportunity for the video streaming giant to gain new subscribers.
This doesn’t just apply to Netflix either. Hulu, Amazon Prime Video, Disney+, and all other major streaming services stand to see significant subscriber growth and user activity in the coming months.
Spotify Technology S.A. (NYSE: SPOT) will benefit for more or less the same reasons as Netflix. People get bored staying at home all day, and to entertain themselves, they are more likely to pay for services like Spotify.
However, unlike Netflix, Spotify earns revenue from advertisements as well as subscriptions. As such, even if Spotify doesn’t see great subscriber growth, the music streaming service will almost definitely see an increase in user activity and streaming time. This will lead to increased ad revenue for the company.
Article By: Connor Beam