Our already technology-dependent society has doubled-down on that need since the COVID-19 shutdown. Whereas we used to go into the office, we now log into the cloud. Where we once went to the movies, we now stream from our couches. This modern pandemic has driven people to connect and socialize more than ever, with video calls enabling us to do it from the safety of our homes.
Society today depends on cloud-computing, streaming, and e-commerce the way our ancestors once relied on hunting and gathering to survive. The post-pandemic stock market will be driven by the leaders and pioneers of these vital technologies.
The Shifting Consumer
E-commerce platforms are taking over the retail industry as more and more brick-and-mortar retailers file for bankruptcy. Amazon (NASDAQ:AMZN) has been cleaning up amid 2020’s pandemic, with the e-com giant expanding its market share with every shuttered storefront.
Despite grocery stores remaining open as ‘essential businesses,’ the outbreak has people afraid to leave their homes. Grocery delivery services have been stepping up to the coronavirus, so consumers don’t have to.
The monotony of quarantine has the world hunting for entertainment wherever they can. Netflix’s newly released docuseries “Tiger King” has drawn an enormous amount of attention and couldn’t have been released at a better time. People have been blowing through shows and movies like there is no tomorrow.
There is a slew of new streaming services on deck for release in 2020, including Quibi, Peacock, and HBO Max. I expect that these services will be met with strong demand as consumers’ appetite for content grows.
Keep reading . . .
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Putting the Social in Social Distancing
When all else fails, we still have our trusty smartphones. Beijing-based social networking service TikTok has exploded since the beginning of the year with its short, trend-inciting videos. Facebook’s family of social media services are also experiencing an uptick in engagement as quarantine boredom sets in.
Video communication services are also being widely used amid this pandemic with Zoom video conferencing leading the charge. The firm’s user base surged from only 10 million in December to 300 million by the end of April (a 3,000% increase in users in just 4 months), and its share price has surged almost 120% since the beginning of the year.
Cloud Computing
Cloud computing is red hot right now, and its subscription-based model is becoming the standard for many successful tech businesses.
Infrastructure as a service (IaaS) is one of the fastest-growing cloud spaces today. The IaaS market is expected to bring in more than $74 billion in annual revenue by 2022, according to Gartner (NYSE:IT). Cloud giants like Amazon’s AWS, Microsoft (NASDAQ:MSFT) Azure, and Google (NASDAQ:GOOGL) Cloud are leading the charge in IaaS with AWS as the leader, but Azure’s best-in-class platform is progressively taking market share.
Platform as a service (PaaS) is a cloud service similar to IaaS, only it doesn’t require the user to build a complex infrastructure or application. It allows users to manipulate the underlying code for their purposes without starting from the ground up. PaaS is a more than $30 billion market that is expected to grow by more than 20% in the next couple of years.
Software as a service (SaaS) is the largest cloud computing market with annual revenues in excess of $100 billion. Today, the SaaS space is smoking hot and rife with potential.
The Opportunity
This pandemic has created an enormous amount of opportunity in the equity markets. Economic uncertainty and shifting consumption patterns have created the perfect storm to upgrade your portfolio for the future with stocks that will drive the post-pandemic world.
COVID-19 is accelerating the consumer trend towards technology reliance, and I predict that well-positioned tech stocks will come out of the market downturn stronger than ever.
Today, I’m releasing my brand-new COVID-19 Investor’s Guide: 5 Stocks to Profit from the “New Normal.” Because of the exponential increase in demand for technology, a handful of companies are poised to skyrocket. This report reveals those 5 stocks, as well as highlighting stocks you’ll want to stay away from.
The urgent report is only available until Sunday, May 10. You’re invited to download it now.
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Good Investing,
Daniel Laboe
Zacks Strategist
Daniel Laboe is an investment expert with a focus and passion for tech, previously working at a Fortune 50 company as a financial analyst and a trader for a Chicago-based proprietary trading firm.
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