Morgan Stanley on tech winners, losers after coronavirus pandemic


A US Postal worker provides Amazon containers outside of the New York Inventory Trade (NYSE) on Oct 11, 2018 in New York Metropolis.

Spencer Platt | Getty Photographs

A handful providers will arise from the COVID-19 pandemic much better, though others will probable weaken, in accordance to a analysis be aware Monday from Morgan Stanley. 

In whole, the firm sees Amazon, Uber, Google, Facebook, WW (previously Fat Watchers), Chewy and on-line gaming corporations Activision Blizzard, Choose-Two Interactive, Zynga and Glu as “much better publish downturn.” The corporations Morgan Stanley expects to be “weaker write-up downturn” consist of Yelp, Quotient Know-how, Groupon, Casper, Trivago and Expedia. 

For e-commerce websites Amazon and Chewy, the analysts stated that shoppers will probable change toward searching on the internet in the prolonged-term for necessities like groceries or pet materials.

“The extent to which men and women understand the simplicity/ease of procuring for groceries/consumables on-line over the next months/month could be a optimistic for new consumer acquisition advancement, a crucial region of pushback, as effectively as autoship penetration, and greater basket size as shoppers transfer much more of their grocery/consumable budgets on the internet,” the analysts reported in their be aware. 

The company also expects promotion bucks to rapidly move back again to Google and Facebook, which has found a strike in revenue. Uber, meanwhile, is “extra utility-like than appreciated,” which will allow its enterprise to snap back again a lot quicker than other people, the analysts stated. 

Having said that, Morgan Stanley said that some businesses with large exposure to smaller and medium measurement businesses, like Yelp and Groupon, will battle to recuperate in the subsequent calendar year owing to “more powerful offerings from much larger players.” Journey site Expedia, which began the downturn in the midst of a comprehensive restructuring, now faces liquidity restraints and “even bigger lengthy-expression uncertainty,” the analysts explained. 

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