Welp…this year is shaking out to be a pretty crazy one. In this month alone, we’ve reached 52-week highs and 52-week lows in a matter of days of each other. The volatility caused by the election year’s uncertainty is only amplified by the infectious disease breakout threatening various countries. Those countries are also blocking travel plans for business people, and without contingency plans, business deals are not being made. The sudden impacts of the coronavirus on transporting goods and people via air, sea, or train are sending the stock market in a frenzy.
Now because this virus has had such tremendous implications on the way we interact with one another, it may be an opportunity for some businesses to recognize that they must have virtual contingency plans. To conduct business now for many in Japan, South Korea, and other countries that have banned travel, is to do it via video conferencing, email, or other online services that encourage collaboration. And once companies see they can possibly increase margins on sales by cutting costs for making the deals, they may conform to using virtual gateways more in the future. Yes, face-to-face interactions are important, but in a world where cost efficiency is (almost) king, virtual engagements may become the new normal.
Here are what has been performing well for me in this market:
- Teladoc (TDOC) – a company that is an online portal to communicate with medical professionals. For obvious reasons, I think there is opportunity here.
- The Trade Desk (TTD) – This is a company focused on providing digital marketing material/services for their clients. As things are getting to be more remote and virtual than ever, data is helping drive more efficient costs for advertising. This is space The Trade Desk specializes.
- Okta (OKTA) – A company that provides cloud-based identity management services.
One company I don’t have but it took a huge swing recently is the Zoom Video Communications, Inc. (ZM). The PE ratio on that bad boy is 3000 which is WAYYYYYY too high for me to buy into it at this point. But if it ever comes back down, then it may be something to look into.