7 Post-Pandemic Stocks to Buy Right Now
If you’re waiting for the end of the pandemic to buy stocks, let me encourage you to fight that urge. First of all, there’s no specific end date that anyone can point to as to when all of this will be over.
Additionally, you could be missing out on some phenomenal growth that some companies are experiencing right now as they tap into massive trends that will far outpace the pandemic.
All of the companies listed below are already growing fast in their respective markets—or are already dominating—and each has the potential to benefit from the world getting back to relative normal.
So let’s take a closer look at seven post-pandemic stocks you should consider buying right now.
7 Post-Pandemic Stocks to Buy Today
Here are the top 7 post-pandemic stocks right now.
Tesla (Nasdaq: TSLA)
- Tesla (NASDAQ:TSLA)
- Price: $781.31 (as of close Sep 29, 2021)
- Market Cap: $773.509B
There’s plenty of indication that the electric vehicle (EV) market is about to accelerate and there may be no other EV company better positioned to benefit than Tesla. Consider these EV stats:
- More than one-quarter of new vehicles sold worldwide in 2030 will be electric
- By 2050, as much as 82% of worldwide new vehicle sales will come from EVs
- Tesla currently holds 66% of the EV market in the United States in 2021
But Tesla doesn’t even have to maintain its massive EV market leadership position in the United States in order to benefit from a surge in EV sales. The company has higher-than-average profit margins from its vehicles and can thus still profit even as larger automakers enter the EV space.
The fact is that Tesla is synonymous with EVs worldwide and is expanding its footprint in China and Europe, which will only give the company more exposure to the worldwide market. Tesla’s Chinese Gigafactory is already churning out cars and its German factory is just about to start production.
As the world bounces back from the pandemic and looks toward its EV future, Tesla will already have the production, vehicle capacity, and models to meet the demand.
Airbnb (Nasdaq: ABNB)
- Airbnb, Inc. (NASDAQ:ABNB)
- Price: $168.07 (as of close Sep 29, 2021)
- Market Cap: $104.11B
It’s no secret that traveling took it on the chin when the pandemic arrived. Airbnb made some very significant cost-cutting moves to weather the storm, believing that they’d be able to bounce back.
In fact, Airbnb’s management said that there would be a “significant” travel rebound in 2021 and, despite some setbacks, it mostly came true.
Here are some traveling stats from 2021, according to the U.S. Travel Association:
- July, 2021 travel spending was just 6.5% below July, 2019 levels
- Hotel demand has almost completely recovered, down just 4% from July, 2019
- Overall travel spending has bounced back and is down just 6% from July, 2019
The pandemic is still negatively impacting travel, but Airbnb is on course. Wall Street estimates that the company’s sales will grow at a compound annual growth rate of 18% through 2025.
The company has already had 1 billion guests use its platform—many of whom haven’t quite scratched that traveling itch during the pandemic. And with its 4 million hosts in 220 countries, Airbnb is poised to benefit as travel fully rebounds.
Once the pandemic subsides, you can expect this newly minted public company to further tap into its massive $3.4 trillion addressable travel market.
Walt Disney Co. (NYSE: DIS)
- Walt Disney (NYSE:DIS)
- Price: $172.68 (as of close Sep 29, 2021)
- Market Cap: $313.781B
Many of Disney’s key businesses took a major hit in 2020, with the company closing its theme parks, docking its cruise ships, and shutting down the production of movies and TV shows.
But now there are plenty of signs pointing to a Disney rebound. Here’s how the company is getting back on track right now:
- As of August, 2021, Disney’s domestic theme park segment is once again generating positive operating income
- Two of Disney’s cruise ships have once again left port and the company is on track to launch its new, fifth ship in the summer of 2022
- Disney+ subscribers skyrocketed 100% between mid-2020 to mid-2021, and have reached 116 million
That last bullet point is worth focusing on for a second because Disney views its video subscription service as a major part of its future. The company’s massive library of Disney-branded content, along with its Marvel and Star Wars franchises, ensure that this segment will continue to be a pillar of Disney’s core business for years to come.
Disney is poised for even more of a business rebound into the coming year as more people feel comfortable traveling again. And with Disney World celebrating its 50th anniversary right now, travelers may be even more motivated to visit the most magical place on earth post-pandemic (and even before).
Where to invest $500 right now
Before you buy Amazon, or Netflix, or Apple, consider this…
The team at Motley Fool first recommended each of those stocks more than a dozen years ago!
- They discovered Netflix for $1.85 per share, back in the days of DVDs by mail.
- And recommended Amazon at $15.31 in 2002, before most people were comfortable using credit cards online.
- And even hit Apple at $4.97 per share, about a month before the release of the very first iPhone.
Check out where those stocks are today. The bottom line: a $500 investment in all three of these stocks would be worth more than $200,000 today!
And here’s why that’s important: The Motley Fool’s flagship investing service Stock Advisor just announced their top 10 “best buys now” across the entire stock market. Whether you’re starting with $100, $500, or more, you’ll want to get the full details!
Square (NYSE: SQ)
- Square (NYSE:SQ)
- Price: $236.04 (as of close Sep 29, 2021)
- Market Cap: $108.644B
Square is a fintech (financial technology) company that makes it easy for businesses to process payments and for individuals to pay each other.
Why does a fintech company deserve a spot on a post-pandemic stock list? Because the pandemic helped accelerate the use of digital payments—a market that was already growing very quickly.
Here are a few digital payment statistics to consider:
- The total transaction value of global digital payments will grow from $6.7 trillion in 2021 to $10.5 trillion in 2025
- More than three-quarters of Americans use some form of digital payments, according to recent research from McKinsey
- The amount of U.S. mobile payment users will surpass 100 million for the first time in 2021 and reach 125 million by 2025, according to eMarketer
Square’s point-of-sale terminals have been widely adopted by businesses of all sizes, making it easy for customers to easily pay for their items digitally in stores. And the company’s popular peer-to-peer payment Cash app has amassed an impressive 70 million users.
In the first six months of 2021, the company’s gross profit increased 91% from the first six months in 2020 and its transaction-based revenue spiked 57%.
Even when the pandemic is a thing of the past, many people will have already experienced the benefits of a digital payment platform like Square and will continue using the tech, helping to solidify this growing market.
Amazon.com (Nasdaq: AMZN)
- Amazon (NASDAQ:AMZN)
- Price: $3301.12 (as of close Sep 29, 2021)
- Market Cap: $1.672T
Getting nearly everything you need delivered right to your doorstep took on a whole new meaning during lockdowns in 2020. For many people, the convenience of the service turned into a necessity, which propelled Amazon’s business.
And while most stores have now reopened, the pandemic helped convince some of the last e-commerce holdouts to jump on the bandwagon. And many of them haven’t left the fold.
The resulting demand for e-commerce services boosted Amazon’s Prime membership total to 200 million customers. In addition, operating income jumped 69% in the first half of 2021 and its North American sales increased 22%.
Of course, e-commerce won’t fizzle out just because the pandemic has. Right now just 12.5% of all retail sales in the United States happen online. That gives Amazon’s massive platform a lot more room to expand in the coming years.
And as hundreds of millions of customers experienced the convenience of fast and free shipping firsthand, there’s likely no going back now.
Roku (Nasdaq: ROKU)
- Roku (NASDAQ:ROKU)
- Price: $302.92 (as of close Sep 29, 2021)
- Market Cap: $40.425B
Roku was one of those companies that benefited as people across the United States had to spend more time at home because of the pandemic. The company’s video streaming platform usage surged as lockdowns and social distancing encouraged viewers to stream TV shows and movies like never before.
But there’s a strong case to be made for buying Roku’s stock even in a post-pandemic world and here are three data points to help back up my reasoning:
- U.S. video streaming subscriptions will jump from 230 million in 2021 to more than 277 million in 2026, according to Parks Associates
- An NPD survey in April 2021 shows that 9% of viewers are considering adding additional streaming services to what they already pay for, compared to the 5% considering cutting back
- Connected TV ad spending will increase from $9 billion in 2020 to $25 billion in 2024, according to eMarketer
So why does all of that matter? Because Roku makes money when viewers use its platform to sign up for new services. The company takes a cut from its users’ subscriptions to Disney+, Netflix, Hulu, etc.—as long as they pay for those services through Roku’s platform.
So as the amount of video streaming users increases, and the amount of subscriptions people have goes up, the more Roku stands to benefit. And the company already has a very impressive 55 million households using its platform, putting it in a leading position in this space.
Additionally, with more advertising dollars beginning to migrate to connected TVs, Roku’s advertising revenue should benefit. The company said recently that its ad commitments doubled in 2021 compared to 2020, which is a good indication that the company is already benefiting from this trend.
Sure, some TV viewing is tapering off because we’re no longer locked in our homes. But that doesn’t mean the massive shift to video streaming is slowing down—and Roku’s already successfully tapping into it.
NVIDIA (Nasdaq: NVDA)
- Nvidia (NASDAQ:NVDA)
- Price: $205.17 (as of close Sep 29, 2021)
- Market Cap: $512.104B
NVIDIA specializes in graphics processors that are used for gaming, and the company’s chips are some of the most in-demand GPUs on the market.
Not surprisingly, the pandemic boosted the time people spent playing games at home, but there’s still plenty of opportunity for NVIDIA far beyond the pandemic. It turns out that NVIDIA’s GPUs are very adept at processing artificial intelligence data, accelerating cloud computing servers, and mining cryptocurrencies.
Here are a few reasons why those three markets matter to NVIDIA:
- NVIDIA’s chips held 80% of the AI processor market share in 2020, according to Omdia
- NVIDIA launched a crypto-specific processor in 2021, aimed at cryptocurrency miners who need lots of processing power
- The global GPU market will increase from $20 billion in 2019 to $201 billion by 2027, according to Allied Market Research
- The worldwide AI chip market will expand from $6.6 billion in 2018 to $91.2 billion in 2025
The fact is that everyone from gamers to Alphabet’s Google are tapping NVIDIA’s processors for some of the fastest-growing tech trends—and NVIDIA’s business is going gangbusters as a result.
In the first six months of 2021, NVIDIAs’ revenue jumped 75% compared to the comparable period in 2020, gross profit spiked 83%, and net income soared 178%.
In a post-pandemic world, NVIDIA will easily continue benefiting from the growing cryptocurrency mining, AI, cloud computing, and gaming trends—and likely lead in these chip markets for years to come.