What Companies are benefiting from the Coronavirus?

When you think of the companies that benefit the most from the spread of coronavirus, your first thought might be a firm that produces face-masks

Companies Are Benefiting From the Coronavirus
Companies are benefiting from the Coronavirus. Photo/Shutterstock

When you think of the companies that could benefit the most from the spread of coronavirus disease COVID-19, your first thought might be a firm that produces face-masks or Purell.

While that may be true, it’s not just medical supply companies who win big.

As more cases crop up every day, people are increasingly staying home, they need to be entertained and they need to eat. That’s a clue.

Over the last week, Netflix shares went up 0.8%, outperforming the rest of the market. This jump happened amid the worst Wall Street sell-off in almost nine years.

SEE NEXT   Sauti' Sol Family Returns on Showmax: Everything We Know About Season 2

For most companies, especially those with manufacturing or air travel in the supply chain, the spread of the coronavirus has all but halted business.

Nations all over the world are sensing an impending world recession. The S&P 500 index fell 8.3% last week.

But for companies which have a direct presence in the household, the coronavirus might actually be a blessing.

In many countries, like the US, China, Italy, and South Korea, there have been widespread shutdowns of not only businesses, but even schools and public events.

Many governments are suggesting people stay within the confines of their homes. Because of this, companies that cater to consumers through online portals benefit greatly.

People will be wanting Netflix, HBO, and Amazon Prime accounts more than ever before.

Amazon will get an added boost from consumers wanting to avoid going to shopping centres and grocery stores. Online deliveries in all industries will most likely spike. Think Fresh Direct and Jumia in Africa.

SEE NEXT   Kyagulanyi Mourns Archbishop Lwanga: It Is a Dark Day for the Catholic Church

An increased number of people will opt to work from home. Because of this shift, analysts predict Slack will experience a boost in users.

Additionally, home workout programs will likely benefit because when they’re not working at home, people may wish to exercise at home.

More people will also be tuning into network television, for both entertainment and news.

Perry Sook, the CEO of Nexstar Media Group, which is America’s largest local television company, sees a silver lining in the outbreak for his company.

He said, as the virus becomes “more widespread in the United States, and there’s more quarantine in home and all of that, then it could potentially benefit our business because we’d be the primary source of entertainment.”

Basically, if a company provides services to people who are bored and stuck at home, it probably has something to gain from this pandemic.

Editorial Staff

Ass. Editor

Art & Lifestyle web-blog with an African-America spice. Lifestyle Uganda was founded, by a team of 3 social media gurus. Let's talk WhatsApp +256790536205.

No Comments Yet

Leave a Reply