COVID-19: Sectors that are set to benefit from this pandemic
Coronavirus outbreak is having a growing impact on the global economy. It is bringing financial unrest for millions of individuals and businesses. But there are parts of the technology industry that are benefiting from the changing
Video conferencing and collaboration
Zoom Video Communications, a remote video conferencing services company headquartered in San Jose, USA has seen share price increase 100% since the beginning of the year.
Zoom Communications skyrocketed from $108 on March 16 to $162 on March 23. An increase of 50% when stock markets are slumping more than 30% is astounding. It is a true success story amidst a global crisis.
Traffic to Zoom’s website has increased by 10 million site visits in the month of February. Search volume for Zoom also rose 22% from January to February and is projected to increase by 108% from February to March.
Below is a screenshot from Google Trends. It clearly shows a 50 times jump in google searches in last week of March.
As more employees find themselves restricted to their homes, more workloads will have to be migrated to the cloud to ensure the business can function as usual.
The coronavirus outbreak is forcing many organisations to go through digital transformation at a rapid pace. Amazon Web Services, Microsoft Azure and Google Cloud are the obvious beneficiaries as market leaders.
There has been a long-standing trend where physical cash is quickly becoming a thing of the past. The likes of Visa, Mastercard and AMEX are already benefitting from this.
COVID-19 outbreak could accelerate this trend further. In the short-term, some shops are now only accepting digital payments. The total number of transactions are decreasing, so will revenues. But in the long-term it could force customers into adopting digital payments.
Video content platforms
Video content platform like Netflix, Hotstar, Disney+, Prime Video, Sony Liv, Youtube etc. are witness increased adoption from new users. Existing users are also engaging more and consuming much more content because of the
This is a period where new habits will develop and these platforms will benefit in the long run.
Online grocery delivery
With the rush on supermarkets persisting due to the lockdown imposed in the country, online grocery delivery companies like Grofers, Big Basket, Dunzo etc. are seeing a surge in popularity. Food tech startups like Swiggy, Box8 and Zomato are also delivering essential groceries to counter a dip in their food demand.
One-third of world population has come under lockdown and is partially completely stuck in isolation at their homes. Here is the trend of searches pertaining to it.
There’s no doubt that recessions are bad for business. Yet, at the same time, some of the best-known companies around have their roots in those tough economic times. GE, IBM, GM, Disney and Microsoft were all founded during
tough economic environments and have thrived inspite of that.
Hence it’s likely that even during today’s economic slowdown, some of tomorrow’s biggest companies are just getting their start.