Netflix will be one company that will benefit from the coronavirus, and it’s for the exact reason you think.
What’s going on:
- Salmon said Netflix “is an obvious beneficiary if consumers stay home due to coronavirus (COVID-19 virus) concerns, and this has been reflected in considerable stock price outperformance this week.”
- Netflix’s shares jumped 0.8% before the close on Thursday despite one of the worst weeks on Wall Street since the Great Recession, according to Yahoo! News.
Other streaming services will do well, too
- Moody’s Investors Services analysts said in a Jan. 29 report that multiple streaming services will find success since people will stay at home, according to the New York Post.
- The report said: “If the contagion became more internationally widespread but short of panic, more people are likely to seek home entertainment options such as from companies like Comcast and AT&T, and streaming TV shows and films from Netflix, Disney Plus, Comcast’s Peacock, AT&T’s HBO Max and others.”
Facebook, Amazon and Slack prepare as well
- MKM Partners analyst JC O’Hara said tech companies for internet users would succeed, too, since people wouldn’t have much to do, according to CNBC.
- “We tried to identify what products/services/companies would potentially benefit in a world of quarantined individuals,” O’Hara wrote, according to CNBC.