3 international stocks to watch in the corona-economy
We examine how three US-listed companies have performed in the last month.
As the coronavirus (Covid-19) pandemic deepens, many governments around the world are implementing strict lockdown policies: closing borders and non-essential stores, restricting travel and urging people to stay inside their homes.
All up, there are currently 422,959 reported cases of Covid-19 across the globe.
Ultimately, though this still-unfolding situation will invariably disrupt a number of traditional and non-traditional industries alike – not all companies will be impacted to the same extent – in fact some companies have even seen their share prices outperform the broader market in the last month.
Netflix share price: watch anything
With people likely to spend significantly more time inside their homes due to social isolation policies, streaming services companies such as as Netflix (NFLX) and Disney (DIS) may benefit from this modified social behaviour.
Investors seem to be in agreement: in the last month alone the streaming giant’s stock has significantly outperformed the S&P 500 benchmark, with the Netflix share price dropping just 0.77% in that period.
Ultimately, Netflix remains the leader in the streaming space, with 167 million total users and a diverse and extensive library of content.
Zoom share price: work anywhere
If Netflix is set to benefit from what workers do at night – a number of ‘remote work solutions’ companies, such as instant messaging company Slack (WORK) and Zoom Video Communications (ZM) – may potentially benefit from what workers do during the day.
Investors seem to think so at least; besides posting a strong set of full-year results in March, the Zoom Video Communications share price has gained an impressive 26.24% in the last month, far outperforming the S&P 500 benchmark.
As part of the company’s FY20 results, ZM reported that its revenue had risen 88% to US$622.7 million on a year-over-year basis, while its operating cash flow almost tripled, hitting US$151.9 million in FY20.
Zoom currently boasts 81,900 customers across the globe.
Costco share price: the Covid-19 impact
Like Netflix and Zoom Video Communications; Costco (COST) – proving its strength as a consumer staples stalwart – has seen its share price strongly outperform the S&P 500 over the last month.
In that period COST has fallen just 6.54% against the benchmark’s 28.4% decline.
Indeed, though many non-essential retail and hospitality businesses have been forced to shutter due to Covid-19, essential businesses such as supermarkets, including Walmart and Costco, are required to remain open.
In the near term, such companies may also see a temporary boost in sales from ‘panic buying’. As Bloomberg today reported, one New Zealand-based ‘supermarket chain said it sold enough food in a single day to feed 10 million people.’
In the last year the Costo share price has risen a steady 20.24%.
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