Amazon, Zoom, Peloton thrive in COVID battered economy
Zoom, Peloton, Amazon and a host of vaccine providers are winning the COVID-19 battle
While the U.S. is trying to claw its way out of an economic recession, the pandemic hasn’t meant bad news for all companies – in fact some have even seen business thrive.
“When the COVID-19 pandemic first began, optimists speculated that we would see a V-shaped recovery. Others predicted a U-shaped recovery. In actuality, we are seeing more of a K shape to this economic recovery,” Pete Trontis, senior portfolio manager at Exencial Wealth Advisors, told FOX Business. “The sectors that are performing well are positioned at the top portion of the K, and the poorly performing companies are at the bottom.”
Trontis said that companies that have done well are “growth companies,” which means they can thrive in a low-growth environment maximizing demand for the services or goods being offered.
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Ryan Giannotto, director of research at GraniteShares, noted that companies that were able to adapt and connect digitally with consumers have outperformed. These are not necessarily confined to the technology sector, either – Giannotto pointed to Domino’s Pizza as an example of a business that successfully leveraged its digital ties to consumers.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DPZ | DOMINO'S PIZZA INC. | 430.65 | -5.33 | -1.22% |
In terms of industries, Luke Lloyd, investment strategist at Strategic Wealth Partners, noted that tech, healthcare and telehealth, wellness businesses, as well as companies positioned to thrive in a transition to a cashless society are doing well.
Here’s a look at some the major companies across certain industries that have grown throughout the past few months, in spite of the downtrodden economic conditions.
E-commerce
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 202.61 | -8.87 | -4.19% |
| WMT | WALMART INC. | 84.27 | -0.20 | -0.24% |
Amazon CEO Jeff Bezos recently made headlines for becoming the first person ever to see his wealth reach $200 billion, according to Forbes, as his net worth rose along with the e-commerce giant’s stock this year.
Many people turned to online shopping for essentials due to coronavirus-related health and safety concerns, as well as social distancing regulations that kept many people in their homes.
Since the beginning of the year, Amazon’s stock was up more than 68% as of Friday.
Like Amazon, Walmart has also seen a stock increase for related reasons.
Year-to-date, shares have increased by more than 15%.
During the company’s fiscal second quarter, Walmart reported that e-commerce sales rose 97%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 202.61 | -8.87 | -4.19% |
| WMT | WALMART INC. | 84.27 | -0.20 | -0.24% |
Work-from-home tech
One of the big winners throughout the pandemic has been Zoom, which allows remote workforces to connect for meetings and other purposes online.
Revenue for the company’s most recent quarter rose 355%.
The stock has hit all-time highs, and is up more than 460% so far this year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ZM | ZOOM VIDEO COMMUNICATIONS INC. | 81.14 | -1.49 | -1.80% |
Gym equipment
Peloton is one of the names in the workout space that has thrived throughout the pandemic, since many people were unable to exercise at their regular sports clubs.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PTON | PELOTON INTERACTIVE INC. | 7.75 | -0.25 | -3.12% |
The company’s stock has surged more than 190% so far this year.
Fourth-quarter sales rose 172%.
Lloyd told FOX Business the company may see further growth even as gyms open because some remain fearful to resume their memberships.
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Biotech
Some of the other names that are outperforming (or poised to take off) include those in the race to produce a viable coronavirus vaccine as quickly as possible.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MRNA | MODERNA INC. | 36.85 | -2.92 | -7.34% |
| AZN | ASTRAZENECA PLC | 63.23 | -1.81 | -2.78% |
| PFE | PFIZER INC. | 24.80 | -1.22 | -4.70% |
AstraZeneca, Moderna and Pfizer are in late-stage trials – although AstraZeneca recently had to pause its trial over safety concerns.
Shares of Moderna are doing by far the best out of the three. Its stock price is up more than 230% year-to-date.
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