We are all aware of the situation that’s currently happening with the Coronavirus. Some people think that it’s not a big deal, it’ll go away in the next month or so, but these people don’t understand how deadly it can be for the tech industry and the global economy as well. Since the global economy is not my field, I’ll focus on the tech industry.
Of course, no one really knows what will happen with the tech industry, because no one knows how long the Coronavirus is going to last, but some things will certainly happen, and it’s happening right now. Let’s take a look!
So, which tech companies will have good use out of Covid-19? Of course, almost all companies in the world will lose money and the stock price will fall down during this Coronavirus, but some will fall less than others, and if all companies’ stock price drops down 10%, but some if there is a company, whose stock price drops 5% or less, that company is a clear winner. Yes, its price if falling down, but a lot less than others. And if this Covid-19 crisis continues, those are the companies that will certainly survive without much financial damage.
Those are all the companies, whose product is focused on the self-entertaining, think of YouTube (Google), Spotify, Netflix, all the different game making companies, etc. These are the services that don’t require more than one person and require a lot of free time, which people currently have a lot because of quarantine. Services like Netflix, have seen a huge increase in watch time, and that’s one of the reasons why you may notice that your internet connection is a little bit slower. So, if you are planning on buying some stocks, these are the companies that will certainly have a huge stock price bump.
In terms of the companies that play games, they’ll maybe have a higher bump in revenue that streaming services, because they allow you to play with your friends, and when you can’t go outside, that’s a very important factor. That’s one of the reasons why companies are adding party mode in their apps. So, gaming companies like EA, Ubisoft, Blizzard, Rockstart Games, will certainly have a huge revenue bump.
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So, which are the companies that will experience a crisis during and after the Coronavirus? Those are basically all the companies that produce physical products because most of the companies are either closed or the workers work from home. That’s okay if the company has a digital product, but if the company produces a physical product, that’s a problem. How are workers supposed to produce a physical product if they are not coming to work? These are all the car manufacturing companies manufactures that produce electronic components, phone manufacturers, etc.
Also, because the Coronavirus started in China, and almost all the products come from China, people feel a little bit unsafe to order something online. They are worried that they could receive a Coronavirus as a bonus! But, although, all of these companies will fall down in stock price, that can be a good thing if you are planning on buying stocks because those companies will certainly get on their previous stage.
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In short, the Coronavirus crisis will certainly affect the tech industry. Some companies like Netflix, Spotify, gaming companies, will see a huge increase in revenues, where some companies like Samsung, Apple, and car manufacturies companies will see a huge decrease in revenue.
I hope that I have helped you with this article. If you liked this article, make sure to share it with your friends.
Also, if you think that I have missed something or you have any other questions, be sure to post your questions in the comments or send me an email at [email protected], I will be happy to answer them.