With coronavirus cases increasing, governments are advising “social distancing” to halt the spread.
In short, “you can lower your risk of infection by reducing your rate of contact with other people. Avoiding public spaces and unnecessary social gatherings, especially events with large numbers of people or crowds, will lower the chance that you will be exposed to the new coronavirus as well as to other infectious diseases like flu,” says New Scientist.
As “social distancing” becomes a hot new keyword for investors searching for coronavirus news, some of the top stocks that fall under that category include:
Zoom Video Communications (ZM)
For investors, ZM is still a popular pick as the pandemic forces many of us to work from home. Analysts at Needham also says the stock could rise even more, as Zoom leads “the shift to a virtual work paradigm.”
Related: Zoom Had Its Biggest Day Ever Number of Downloads Last Sunday
“Demand for Zoom’s software, which facilitates virtual conferences and web meetings, is exploding as the spreading virus is prompting office closures and meeting cancellations. Business conferences, college courses and even children’s playgroups have all moved online as people worldwide heed calls to stay away from one another,” reports Fortune.
Activision Blizzard (ATVI)
With many of us stuck at home, video games could see higher levels of engagement, especially those that allow for interactivity with others.
“While all stocks are getting caught in the current downdraft, some companies are going to see less impact to fundamentals than others,” noted Cowen analyst Doug Creutz. “We believe that the video game sector rather uniquely is poised to see very little disruption to results over the next 12 months in all but the most severe (read: the stock market will be the least of our problems) scenarios. As such, we view the sector as a logical place to favor in the current volatile market environment.”
Sometimes, the best opportunities are the most obvious ones. If you’re stuck at home with your kids with very little to do, many of us will watch television or movies. With governments advising “social distancing,” Netflix is likely to help meet the needs of the housebound, while potentially leading to additional subscribers around the world.
Ian Cooper’s Personal Position in ZM, ATVI, NFLX: None
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