It has been a crazy few months on global sharemarkets. Following one of the quickest sell-offs in market history, shares have rebounded with force. Here we deep dive into some winners and losers…
Winner 1: eCommerce Companies
As customers increasingly turn to the internet for their shopping needs, eCommerce companies Amazon and Kogan have seen profit forecasts skyrocket, and some significant increases in valuation.
Winner 2: Vaccine Producers
As COVID-19 continues to run rampant globally, the race for a vaccine is officially on.
Private pharmaceutical companies with capabilities in vaccine production have seen valuations increase significantly. The potential profitability of a vaccine has investors excited, with some noticeable jumps in valuation.
US company NOVAVAX has been a big beneficiary of this trend, at the time of writing the company was up 1342% for the year.
Winner 3: The Local Outdoors
As consumers become accustomed to the reality that air travel may tough for some time, camping and outdoors suppliers are booming!
Winnebago (producer of campervans) has seen a huge jump from their March low, however, that return is dwarfed by Camping World’s which has seen a 695% return from their March low (some crazy numbers).
Big Loser 1: Aviation 🙁
With closed borders & grounded flights, airlines & airplane manufacturers have been hit hard.
Boeingm, in particular, has been hit by a triple whammy:
- Decreased demand for travel resulting in less/cancelled plane orders
- Airlines going bankrupt and increasing the supply of planes available on the second-market
- Lingering uncertainty from the 737 MAX scandal
These three converging factors lead to lower profit expectations, higher risk and therefore decreases to share prices.
Any sweet market opportunities?
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