The Coronavirus havoc has weakened the poorer and strengthened the rich
The Seattle-based e-commerce giant has grossed no less than $401.1bn during the lockdown period. Although their worldwide logistics comes at a price during the crisis, at around $4bn, the profit margins are large. The Jeff Bezos’ multinational soon became the only emergency button to stockpile vital goods during the quarantine. While most online stores were in a dire situation, Amazon’s infrastructure kept pumping deliveries.
Despite the shutting down of non-essential products for the most part of the shutdown, the product offer remained competitive. The overhead has been expanded to include virus mitigation measures, such as testing labs, facemasks, thermal cameras, etc. We are yet to see if Amazon registers quarterly losses for the first time in the last 5 years. In the mid-to-long term, though, the shift to online shopping will become predominant.
In parallel, the cloud computing business that supports remote work in the social distancing era will provide high increasing profits. Prospects are positive for this company.
Microsoft is a well-established technology company based in Redmond, USA, that always ranks high in shortlists. Their top product, Windows, is the default OS in the majority of computers so it’s an edge in introducing users to their new services, such as the Teams communications app peaking at 75m daily users last April. Remote working and online communications have been on the rising during the worldwide lockdown.
Grossing $269.9bn during the quarantine months, Microsoft forecasts are looking optimistic for the next months. Satya Nadella management has focused the cloud with great success with excellent timing considering the 2020 global crisis. Social distancing rules have favored the use of Teams comms app that allows workers to keep taps with their colleagues using the integrations with the native Microsoft software.
Moreover, the Azure cloud computing platform is the software infrastructure spine for many companies worldwide. Plus, their Xbox Live service also peaked reaching 90m users last April in the midst of the lockdown. In a nutshell, Microsoft’s various services will position in a relevant spot for the upcoming months.
The Cupertino tech giant Apple has also performed with increasing profits in the past months. Despite shutting all retail stores, the company sales reached $58.3bn in the March quarter alone. During the past months, the company has grossed around $219.1bn considering all their income streams due to the resilience of online sales. In fact, Apple has continued to release an iPhone, iMac, and a Mackbook Air attracting more new users to their constantly-growing ecosystem, wearables products, and digital services.
On the bright side, some items sales were predicted to accelerate as a consequence of the lockdown. The reason being that remote working often requires some software and hardware upgrades thus favoring more sales for the company. Finally, Apple received recognition for becoming the first $1.5tn company ever. The future is exciting for the Cupertino company in the post-corona era.
A high-innovation automobile company based in Palo Alto, USA and managed by the well-known entrepreneur Elon Musk, who is also behind SpaceX. The premise of the company is to manufacture the cars of the future which eventually will drive autonomously. Although the latest Model S by Tesla has an autonomy of only 402 miles (around 650km), the hype is evergrowing worldwide around electrical cars and autonomous driving.
Tesla has added $108.4bn in sales during the last months while other businesses were shut or had limited functionality. In 2019, the hype was already high as the cybertruck was announced as the Tesla counterpart of pickup trucks. Since then, the stocks have been on the rise until the pandemic started and have soon resumed the growth afterward. Tesla has maintained an edge over competitors who are facing issues in refactoring existing software and factories.
Elon Musk aims to create a fleet of autonomous taxis that will charge by the mile withing some years. At the current pace of development for autonomous driving, the milestone is believable to be achieved eventually. What’s more, despite Elon Musk declarations last May on the Tesla stock price to be “too high”, the per-stock price has continued to escalate.