RBC Capital Markets’ technology analyst Mark Mahaney said no stocks are “immune” to the economic calamity from the coronavirus, but the pandemic “has created structural winners.”
The Wall Street firm expects certain technology stocks to benefit from the changes in consumer behavior during the lockdown period.
“In a crude way the COVID Crisis has practically served as an advertisement for the benefits and necessities of Online Retail, Streaming and other categories for consumers and of having a Web/Digital Presence,” Mahaney told clients. “We expect the resulting behavior changes to be profound and permanent.”
E-commerce, streaming, online food delivery, gaming and cloud companies are experiencing accelerated adoption due to the deadly pandemic.
“There is still the distinct possibility that the economic dislocation caused by the COVID Crisis will materially impact demand trends later in 2020, but the first-wave impact has clearly been positive for these categories and their leaders,” Mahaney added.
Mahaney identified the top technology stocks that have benefited and will continue to benefit from these trends. Here are RBC Capital Market’s “structural winners.”