There is no denying that COVID-19 has taken the world economy to unprecedented lows, sending global markets on a tumultuous roller coaster, claiming the jobs of over 30 million Americans in a mere few weeks and prompting the government to inject stimulus packages like they haven’t ever before.
However certain companies have bounced back through the crisis and discovered fresh levels of demand. Here are a few examples.
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The winners from the crisis
Millions have been stuck at home through the crisis with minimal to do. Naturally then, streamers have seen a surge in subscriptions and viewing numbers.
Netflix is the big winner here, beating the likes of relative market newcomers like Disney adding a cool 16 million to their platform in the first quarter of this year with the help of successful new titles including Tiger King and Extraction.
Other winners in the business world during the pandemic
Other winners that have strayed away from the depressed economic trend witnessed elsewhere include e-commerce giants such as Amazon. The e-commerce giant has hired an extra 175,000 workers to meet the growing demand they faced during the pandemic. The company announced that it could see a 28% increase in revenue from the first quarter of the year. E-commerce companies like Amazon have also been quickly able to adapt using an iPad credit card reader and other resources to ensure contactless payments.
Reliance on tech during the crisis has also led to a surge in popularity for services like Zoom. Indeed, Goldman Sachs has suggested that companies switching to zoom instead of focusing on business travel could cause oil demand to sink 3 million barrels per day. Zoom’s share price has also increased by 87% since the start of the year, despite previous concerns about privacy.
Surges in demand in some companies
Niche e-commerce businesses have seen significant demand growth too. As more people are staying at home, there is less of a need for formal wear. Instead, customers are focusing on buying comfy clothing that will be more beneficial for a home business model. Boohoo specialize in the sale of loungewear and have seen a massive increase in sales. In general, the demand for loungewear and casual wear climbed 49% through March and April.
Changes in the entertainment sector
Covid-19 has even led to changes in the entertainment sector. Bored celebrities and influencers are now relying on streaming services like TikTok to stay in the spotlight. The new increase in popularity has caused ByteDance to go on a hiring spree recruiting Erich Anderson, a former Microsoft vice-president and Kevin Mayer who was originally Disney’s top streaming executive.
Online gaming streaming companies witnessed fantastic levels of growth as well. Total game downloads on Apple’s app store has increased by upwards of 27% in some countries, leading to revenue levels rising by 12%. Certain companies including Tencent are seeing record numbers for certain titles as more people choose games as a way to stay in contact with their friends and view streams of other gamers.
Regardless of what measurements governments opt to take over the next few months, a global recession rivalling the great depression is imminent. However, it seems that at least some companies have discovered the silver lining and adapted to the situation in key ways to maintain or even increase profitability.
