High Use Of Bandwidth Inc. Will Last Long After COVID-19 Is Gone

E-commerce, video conferencing, gaming, and basically any stocks involved with staying at home have seen phenomenal returns this year, with many stocks up over 100%. In light of that, it’s hard to know whether you are buying too late, or if we are just at the beginning of a lasting trend. Fortunately, there’s no better place to be forward-looking than tech because something new is always happening that leads to money-making decisions.

Take for example Chewy.com (CHWY), an online retailer of pet food and other pet-related products whose stock is up almost 200% since the start of the pandemic. This here is a fundamental shift in e-commerce and consumer habits, and not a one-time event. With stores closed across the country, it’s understandable why this company has done so well, and I believe they will be able to sustain their newfound business as people discover the convenience.

Why would you want to carry around a 30-pound bag of dog food, when you could get it delivered right to your door? Pet owners also rarely change brands, making ordering an easy solution for everyone involved. Long after a vaccine is found, I predict this trend will continue.

This is why I’m looking at the global communications market, a space that has seen massive growth during the pandemic and one that is likely going to see permanent change. Just look at the growth of products from Microsoft Corp. (MSFT) and Zoom Video Communications Inc. (ZM). Microsoft Teams has more than 115 million daily active users, up from 75 million in April, and Zoom has seen tremendous growth as well, with sales jumping 355% last quarter.

One of the important takeaways here is that this is going to be a lasting effect. Many companies have seen that videoconferencing and online collaboration work. The cost benefits make it even more appealing. So much so that major companies are making a permanent shift. Facebook (FB), Twitter (TWTR), Square (SQ), Shopify (SHOP), and Dropbox (DBX) are just a few of the companies allowing their employees to work from home even after offices reopen.

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