Many companies may be suffering from the recent pandemic but not all of them. The recent stay at home order has made it possible for some companies to reach all-time highs, for example, some streaming companies. People at home all the time always want to be entertained. Netflix and Amazon share both closed Tuesday at their all-time highs.
Broader stock indices extended their recent upswings despite pervasive gloom and doom in the forecast, with the Dow 30 climbing 2% and the NASDAQ rising 4% for the day.
Investors have singled out Netflix and Amazon for their respective market positions and execution during the time of COVID-19. Netflix stock rose 4% to $413.55 on above-average volume, while Amazon’s finished at $2,283.32, up 5%, also on better-than-average volume. Amazon is up 24% in 2020 to date, while Netflix has gained 25% in that span.
Both companies will report first-quarter earnings this month, showing how the effects of the coronavirus, which put most of the population and customers into lockdown. Given its longtime lead in direct-to-consumer streaming, bench of hundreds of original shows and movies, and global footprint, Netflix has so far withstood the shutdown in production. The increase in overall streaming hours per household has also benefited the company given its status as a well-established brand. Disney, Comcast, WarnerMedia and Apple are all in the process of launching direct-to-consumer challenges to Netflix.
In Amazon’s case, streaming is not hugely relevant but what isis the role they play as a major delivery conduit for basic consumer goods at a time when physical retail stores are under many difficulties by the coronavirus. That is where they experience and increase because more people sitting at home need supplies. Its stock has posted gains despite some high-profile labor and logistics issues that have demonstrated the challenge of meeting such historic global consumer needs.