Coronavirus has forced consumers to change the way they consume: no more – or very little – compulsive purchases, online shopping and careful in-store grocery errands… Has consumer behavior changed for good?
While individuals have never paid so much with contactless payment, a new study published by Morgan Stanley shows that a global consumer behavior change could turn into a good thing on the long term.
CNBC has revealed a few eye-opening facts on how this will affect macro-trends and change everyday life, from the way we consume to the way we work.
New sectors for new behaviors
According to Moran Stanley, post-Covid life can be summarized in the following way: e-commerce, e-business as well as companies with a strong tech support are the ones who will most likely thrive, reports CNBC.
Shares of digital payment company Square have surged, as investors have grown bullish on stocks they think can benefit from shifts in consumer behavior during the pandemic. @davidhodari explains. #WSJWhatsNow pic.twitter.com/QLD4rLeuh9
— The Wall Street Journal (@WSJ) July 12, 2020
From the way we eat, to the way we take care of our children or the way we commute; everything will change in the long term because of coronavirus, Morgan Stanley analyzed. In other words, tomorrow’s consumer is different from yesterday’s.
With working-from-home orders, the real estate business online is booming; Morgan Stanley recommends Invitation Homes Inc. Still in the home section, meditation tech companies WW International Inc. and Peloton Interactive Inc. have also caught the attention of the financial giant.
Read on Alvexo: “COVID-19 Boosts Contactless Payment”
Cyber security brought to the light
Since most workers are still staying at home, cyber security has become a priority for most of them.
Expanding 5G might seem like a priority to some, to whom CNBC recommends investing in CommScope Holding Inc, Lumentum Holding Inc. and Ciena Corp.
Same thing for banks, who are reportedly investing more money in front-end technology, since they do not have to pay extremely high rents anymore for their employees.
Transportation Is Taking a U-Turn
Last but not least, experts recommend not to invest in transportation stocks since lockdowns are resuming in several States and in several countries both in Europe and in Asia.
“Reduce expectations for public construction spending by about $100 billion by 2022”, shared Morgan Stanley in its report. As a result, airlines are at high risk, as shows Delta shares, which was traded for $59 before the pandemic and fell to $19. As a result, Delta might furlough 15,000 employees.
Shares of Tesla has been on a record run this year as investors continue to favor Elon Musk’s company. What is driving up interest in the stock and can it last? @NancyCNBC and @tanvirgill2 discuss. $TSLA pic.twitter.com/bggtgvelZ9
— CNBC International (@CNBCi) July 14, 2020
However, a few companies have already started designing tomorrow’s solutions with environmental-friendly products such as Tesla, whose stock has tripled since the start of the lockdown, going from $430 to $1,497 per share. Analysts are strongly recommending to buy shares if possible, since they are likely to keep on rising, confirmed experts on CNBC.
The above content is considered to be market commentary information and shall not be perceived as independent investment research or investment advice.
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