Global financial markets showed high volatility this week as concerns about the third Corona wave re-emerged. After weeks of decline, the number of cases in the United States has risen again in recent days, especially in states such as New York, Florida, Michigan and Texas. In Europe, some countries, such as Germany, France and the Netherlands, have re-imposed or extended bans or other social restrictions.
A worrisome development could disrupt a “reopening of trading” as investors sold technology stocks that performed well during the pandemic and put their money into valuable stocks likely to benefit from the reopening of the economy.
With this in mind, the following two values are well suited for taking advantage of such a scenario.
1. Netflix
Netflix (NASDAQ :), considered one of the biggest winners in the COVID-19 crisis, has benefited from an increase in the number of people staying home and using the live streaming service for entertainment during the pandemic due to social distancing measures. With fears of epidemics spreading around the world, this practice is likely to increase again in the coming months.
In another promising sign, Conent and the manufacturer recently announced that they are in the process of cracking down on password sharing, a practice costing billions of dollars.
According to the latest estimate, about a third of customers who share Netflix share their passwords with family and friends who live outside the home. We expect the serious action to lead to an increase in the number of new subscribers in the US and abroad in the coming weeks and months.
Giant stocks flowing into Los Gatos, California are down 1% so far in 2021, while they are up 4.1% over the same period. Investors sold technology stocks that performed well during the pandemic and bought shares of value that were likely to benefit from the reopening of the economy.
NFLX ended Tuesday’s session at $ 535.09, down nearly 10% from its all-time high of $ 593.29 on Jan.20, which translates to a market value of $ 233.5 billion. We think the recent sales are a good starting point given the increasing number of coronavirus cases and renewed lockdowns in Europe.
2. Zoom in the video
Another known winner is Corona Zoom in for eye contact (NASDAQ :), it’s no longer preferred in recent months as advances in vaccination have pushed states and states to stay home, relax, or lift lockdowns and regulations.
Since hitting a record high of $ 588.84 on October 19, ZM stock has lost momentum, although it ended recent trading at $ 339.76 yesterday, down nearly 43% from its high. Despite the recent sell-off, the stock is up 0.7% year-to-date and 113% last year.
Based on the latest estimates, the San Jose, California videoconferencing specialist’s market value is $ 95.9 billion.
In light of concerns about another potential halo wave – and subsequent shutdowns – it makes sense to regain access to the cloud-based conference provider. This assumes that companies around the world are keeping their offices closed.
Additionally, feelings towards the company have recently improved. This was due to the announcement that Zoom plans to license its video conferencing technology to other companies so that they can incorporate the technology into their apps and websites. As part of the new model, Zoom will continue to allow video calls, but it will not function as a player. Instead, the buyer of the license comes out on top. According to Chief Technology Officer Brendan Etelson, calls are billed minute by minute, with the first 10,000 free monthly minutes.
As a result, Zoom, the leader in modern commercial video communications, is competing with service providers like Amazon (NASDAQ 🙂 and RingCentral (NYSE :)), which already offer brand-independent tools that can be integrated into their products.
