Anyone who keeps current on market developments and investing trends has heard the phrase "stay-at-home stocks." If you're someone who doesn't quite understand what the phrase means or a curious reading looking to learn more about these stocks, then read on to find out more about this growing area of market investment and my thoughts. Stay-at-home stocks are pretty self-explanatory. They refer to shares of businesses that have been able to do well despite coronavirus or have even benefited from stay-at-home orders. Generally, these stocks are businesses like e-commerce, delivery services, or other companies that can continue to operate normally or have seen an increase in demand.
One of the most popular stay-at-home stocks is Zoom, or Zoom Video Communications, Inc. Their eponymous software has been instrumental as hundreds of thousands worldwide have transitioned to working from home. Of course, there were other video communication software providers before, but none have simplified and streamlined it as much as Zoom. This simplicity and ease of use are what rocketed Zoom to more than doubling their stock in the year thus far. While this growth is certainly impressive, some analysts are looking at more prominent players like Microsoft and expecting that Zoom may not continue the momentum as other video communications services develop.
Perhaps the company with the most to gain from the disruption caused by coronavirus is the e-commerce giant Amazon. Physical retail closures and consumers trying to avoid contact with others has created a massive increase in e-commerce demand. Amazon has come out as a top contender by taking advantage of the shift to online shopping through Amazon Web Services, which provides cloud computing service for a wide swath of websites. Even their live streaming platform Twitch is showing an increase in usage during the pandemic. Amazon has been growing at an alarming pace and is considered one of the best investments of the past few years, and it looks to be continuing that pattern.
With restaurants closed, many people are spending a lot more on groceries. General Mills is one of the top companies benefiting from this change in spending habits. Estimates in Barrons place sales are rising by around 17% this quarter despite losses in foodservice and convenience-store business. It seems that few states have figured out effective ways for restaurants to open, and many consumers are watching their wallets a little more closely now. This evidence leads one to believe that General Mills and other grocery standbys may be smart investments for the time being. Services or businesses that deliver groceries may also benefit from these trends.
The current economic situation may have you feeling uncertain about your investments, and that's understandable. However, if you can accept the risk and have the money to spare, there is a possibility for some serious gains. Are you looking to read more of my thoughts on the market? Check out my blog on which companies have thrived during the COVID-19 pandemic.