Five Tech Stocks Poised to Grow as the Economy Reopens
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As countries begin to vaccinate their populations, businesses will begin to reopen. With those re-openings, and the jobs that will be restored in their wake, the economy will gradually begin to make up lost ground. As workers are rehired and incomes begin to grow, so too will consumer confidence. And both mass vaccinations and rising consumer confidence will also allow us to begin to venture out again and be social once again, which ill provided ballast to the ailing hospitality, outdoor recreation, travel, and restaurant sectors.
Some businesses are better positioned to take advantage of these expected developments than others. If you’re looking to invest in stocks sure to surge when the economy reopens, look no further than these five stocks.
The biggest company in travel-related search and bookings, Expedia’s stock should grow nicely as consumers begin to travel more frequently. The company owns large players in the online booking space like Orbitz, Travelocity, and trivago, all of which will benefit nicely from increases in consumer leisure travel.
Uber had been increasingly profitable going into the pandemic. But with pandemic-driven social distancing, ridership dropped precipitously throughout 2020. As vaccinations scale up and businesses begin to reopen, ridership should begin to tick up as well. It remains to be seen how pandemic-related migration from urban areas and permanent remote work announcements may affect the need for transportation. But workers, college students, weekend revelers, and others will begin to fill that void.
This platform, which was positively pounded by the pandemic, should enjoy explosive growth as consumers begin to travel more. And given both tremendous pent-up consumer demand to travel and Airbnb’s affordability compared to hotel costs, Airbnb is poised for considerable revenue growth.
When we no longer need to socially distance, expect an explosion of social gatherings, to include parties, karaoke nights, and dates. Many singles have been struggling with loneliness and isolation more acutely than those in relationships. And virtual dates for many, have not been a good enough stopgap. The Match Group, which owns many of the most popular dating platforms, including Match, Tinder, OKCupid, and Plenty of Fish, is poised to capitalize from a surge of singles finally able to look for love IRL.
While the receding pandemic will undoubtedly drive many consumers back to brick-and-mortar stores to shop, many consumers have become acclimated to online shopping. And Shopify, whose online shopping platform has fielded significant amounts of discretionary spending during the pandemic, will likely see continued growth of its services and revenue passing through its vendor network.
While the pandemic is not over yet, the arrival of multiple effective vaccines heralds the beginning of the end. And as life begins to lurch back to normal, these five companies are positioned well to profit.