The main indices of Wall Street fell this week as the corona virus spread throughout the world and the fear of impact escalated. In recent days, the number of confirmed cases and deaths has increased dramatically in Italy, South Korea, Iran and other countries outside of China.
Due to the uncertain economic implications, investors have released risky assets. Both the largest and the four-day losses since the massive sell-out in December 2018. These declines brought both benchmarks around 8% below their record highs earlier this month.
Although it will be difficult for most companies to isolate themselves from the effects of the rapidly spreading disease, three names are probably one of the few that have not been damaged by the worldwide global corona virus outbreak.
1. Zoom Video Communication
Zoom Video communication (NASDAQ :), headquarters based in San Jose, California, offers external meeting services using cloud computing. It is generally regarded as the leader in modern business video communication, with a simple, reliable cloud platform for video and audio conferences, online meetings, chat and webinars.
The company has seen its shares rise nearly 41% since the news of the coronavirus outbreak on January 21 sent shock waves across the financial markets, compared to the 6% drop in S&P 500 over the same period. The stock, which has risen 57% to date, rose to a new record high of $ 111.80 on Tuesday, before closing at $ 107.08 with a market capitalization of $ 29 billion.
As the reach of the virus increases, companies worldwide are likely to need employees working from home, creating a new demand for remote work tools.
The teleconferencing services provider then reports the gain after the US market closed on March 4. Consensus calls for earnings per share of $ 0.07 for the fourth quarter, while revenue is expected to increase by 66% from to $ 176.5 million.
2. Netflix
Netflix (NASDAQ 🙂 is the second name to consider buying as the fear of the outbreak grows. Although the company has no operations in China, the increasing impact on the US may increase demand for the media service provider.
Netflix's stock has increased by 6% since January 21 and the YTD has increased by more than 11%. Shares, which reached a high point in 52 weeks on February 19 of $ 392.95, raised $ 360.09 yesterday with a market capitalization of $ 158.1 billion.
The Centers for Disease Control and Prevention have stepped up the call to the American public to prepare for a possible outbreak at home on Tuesday. Dr. Nancy Messonnier of the CDC stated that "we are asking the American public to work with us in the expectation that this could be bad." The CDC has so far confirmed 53 cases in the US
The profound effects of COVID-19 can lead to more people staying at home and turning to Netflix for entertainment.
The streaming company reported strongly last month that the total number of subscribers grew to 167 million.
3. TAL Education Group
Tomorrow Advancing Life Education Group (NYSE 🙂 is the last name that should be on your radar because it offers online tutoring services for primary and secondary education students in China.
While local governments in China are postponing the reopening of schools to limit the spread of the corona virus, parents in many quarantined cities are benefiting from online education for their children. Some provinces and schools have also asked that children attend online courses during this period.
TAL Education Group shares have risen by around 5% since January 21. YTD. The stock, which ended last night at $ 56.58, has won nearly 18% in 2020 and reached a record high of $ 59.76 on February 14. TAL has a valuation of $ 34 billion.
The education and technology company offers tutoring services to kindergarten up to and including students of the 12th grade, with core science courses such as mathematics, physics and English. Since its inception, TAL has been committed to integrating the internet and technology into education to provide a better learning experience for children.
The company beat last month and the total number of student enrollments rose by 66% y / y to more than 2.3 million in the quarter that ended on November 30.
