CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

3 international stocks to watch in the corona-economy

We examine how three US-listed companies have performed in the last month.

As the coronavirus (Covid-19) pandemic deepens, many governments around the world are implementing strict lockdown policies: closing borders and non-essential stores, restricting travel and urging people to stay inside their homes.

All up, there are currently 422,959 reported cases of Covid-19 across the globe.

Ultimately, though this still-unfolding situation will invariably disrupt a number of traditional and non-traditional industries alike – not all companies will be impacted to the same extent – in fact some companies have even seen their share prices outperform the broader market in the last month.

Netflix share price: watch anything

With people likely to spend significantly more time inside their homes due to social isolation policies, streaming services companies such as as Netflix (NFLX) and Disney (DIS) may benefit from this modified social behaviour.

Investors seem to be in agreement: in the last month alone the streaming giant’s stock has significantly outperformed the S&P 500 benchmark, with the Netflix share price dropping just 0.77% in that period.

Ultimately, Netflix remains the leader in the streaming space, with 167 million total users and a diverse and extensive library of content.

Zoom share price: work anywhere

If Netflix is set to benefit from what workers do at night – a number of ‘remote work solutions’ companies, such as instant messaging company Slack (WORK) and Zoom Video Communications (ZM) – may potentially benefit from what workers do during the day.

Investors seem to think so at least; besides posting a strong set of full-year results in March, the Zoom Video Communications share price has gained an impressive 26.24% in the last month, far outperforming the S&P 500 benchmark.

As part of the company’s FY20 results, ZM reported that its revenue had risen 88% to US$622.7 million on a year-over-year basis, while its operating cash flow almost tripled, hitting US$151.9 million in FY20.

Zoom currently boasts 81,900 customers across the globe.

Costco share price: the Covid-19 impact

Like Netflix and Zoom Video Communications; Costco (COST) – proving its strength as a consumer staples stalwart – has seen its share price strongly outperform the S&P 500 over the last month.

In that period COST has fallen just 6.54% against the benchmark’s 28.4% decline.

Indeed, though many non-essential retail and hospitality businesses have been forced to shutter due to Covid-19, essential businesses such as supermarkets, including Walmart and Costco, are required to remain open.

In the near term, such companies may also see a temporary boost in sales from ‘panic buying’. As Bloomberg today reported, one New Zealand-based ‘supermarket chain said it sold enough food in a single day to feed 10 million people.’

In the last year the Costo share price has risen a steady 20.24%.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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