A big year for the likes of Amazon and Netflix meant misery on Main Street

As of March 23, Apple had lost $ 435 billion in market value in about five weeks, and many of its retail outlets were closed, as the virus epidemic hit the global economy and stock markets. Meanwhile, a report released by the National Bureau of Economic Research found that 2% of small businesses surveyed in March closed down permanently.

On December 30, Apple’s AAPL,
The stock market value totaled $ 2.29 trillion since March 23, 133%. In the meantime, Congress has approved about $ 300 billion in additional relief for small businesses, money that many hard-hit owners only hope they can help survive until the epidemic finally subsides May it not happen.

The success of Apple and other large technology companies and the struggle of most small businesses is just one example of how the epidemic in the business world in 2020 made winners and losers. Wall Street recovered after March; Main Street is still struggling.

In 2020, it is not uncommon to work remotely in the Swaptants – meeting on video conferencing platforms such as Zoom ZM,
– Later hop on an expensive high-tech exercise bike and deliver your favorite restaurant to your home (a driver is not expected to try to earn money and catch coronaviruses).

Of course, the other aspect of that scenario is deserted office buildings, empty restaurants and sparsely populated gyms. And as some traveled, the airline industry needed billions of dollars in aid from the government and is still threatening to lay off workers.

The following is a look at the businesses that benefited from the epidemic and which staggered.

First, the winner:

Big Tech: The epidemic was by far the biggest winner of the epidemic. The lockdown orders have brought online the big innings of life that were already underway. A sudden ideal from work to shop as well as home, profits also proved profitable for Big Tech, such as movie theaters, malls and other industries due to the epidemic. Apple, Microsoft MSFT,
+ 0.33%,
Amazon AMZN,
Facebook fb,
+ 0.47%
And Google’s parent company Alphabet GOOG,
+ 0.71%

+ 0.94%
It now owns about 22% of the S&P 500. Never before has five companies dominated Wall Street. At the beginning of the year, those five accounted for less than 17% of the index. Closes by 2020, however, increasing pressure. Regulators in the country and the world are bringing Big Tech under greater scrutiny, which may threaten their leadership. (Here’s a closer look at the year in technology)

Streaming Services: As movie theaters closed and lockdowns descended across the country, people turned to a growing number of video streaming services for entertainment. According to Nielsen, Americans increased their time by 75% in the second quarter from a year earlier, as the epidemic intensified the trend for people to shift to watching TV online rather than traditional cable. Among the new services launched were NBCUniversal’s CMCSA,
+ 2.32%
Peacock and WarnerMedia Tea,
+ 0.95%
HBO Max. Netflix nflx,
+ 3.08%
Was a big winner, adding 28 million subscribers in the first nine months of the year. And Disney + gained 86.8 million customers in just one year, a bright spot for the Walt Disney company DIS.
+ 0.01%,
Whose businesses including movie studios and theme parks were developed by the epidemic.

Delivery service: Since people stayed home due to coronovirus, restaurant delivery companies that were convenient in 2019 became essential businesses in 2020. Grub of grubah,
+ 0.42%
Revenue increased 36% through September as more restaurants began using app-based delivery services to avoid a complete or partial shutdown of their dining room. In Uber,
The Uber Eats delivery service brings in more money than the signature ridesharing business during the third quarter. And the trend is global. For example, Dordash now offers delivery from 390,000 merchants in the US, Canada and Australia. Company shares DASH,
+ 1.82%
Jumped 86% to its stock market debut on 9 December.

Home Workout: During 2020 the fitness regime moved extensively from gym to home. Interactive fitness bike manufacturer peloton PTON,
One of the biggest winners was the workout-to-home trend. Revenue more than doubled to $ 1.9 billion during the first nine months of the year as its high-tech bikes and treadmills were found in more homes. Subscriptions increased dramatically during the year, reaching just 1.3 million by September, compared to 563,000 a year earlier. Meanwhile, the gyms did not fare so well as people used to avoid crowded places. Planet Health PLNT,
September saw a 45% drop in revenue as membership fell and the company fired workers. Others, such as 24-hour fitness, sought bankruptcy protection.

pet Supplies: More homebound Americans got pets during the epidemic and investors noticed. According to the 2019–2020 National Pet Owners Survey by the American Pet Products Association, sixty percent of American families now own a pet. It was around 56% 30 years ago. To capitalize on the trend, San Diego-based Petco WOOF,

Filed for an IPO this month. The details remain wrapped up, but online pet supply vendor Chevy by last year’s IPO provides a worthy comparison. Chewy shares CHWY,
It has quadrupled since the 2019 IPO. Stock of Freshpet FRPT, another pet-supply company,
+ 0.67%,
This year has more than doubled.

And then there is the industry that lost ground in 2020:

journey: Travel and leisure for work evaporated in 2020. Plans were empty and airports were ghost cities. On 14 April, the Transportation Security Administration screened just 87,534 passengers at US airports, down an astonishing 96% from the same day in 2019. Southwest Airlines LUV
+ 0.43%
CEO Gary Kelly said last month that business travel, a major source of airline revenue, was down 90%. Very few people also wanted hotel rooms. Market-data company STR said that in late October, US hotel occupancy averaged 45% for the year, down from 66% for all of 2019, and forget about rushing on a cruise: most major cruise companies volunteered The migration has stopped from American ports until the end of February 2021.

Small Business: Coronaviruses and drastic measures imposed by government officials to try to control its spread had imposed a severe toll on many small businesses in US restaurants, hair salons, event planners and other businesses that trusted people, especially Harder than – hit, as they were tied to tourism. In April, payroll provider ADP reported that about 20 million jobs were lost at US companies, with more than half of businesses employing less than 500 people. The government relief program helped by giving more than 5.2 million loans to small businesses and non-profits between April and August. Congress approved another round of funding but many companies can still fold.

Business attire: Untold? Like more do not wear it either. A large proportion of the millions forced to work from home by the coronavirus virus epidemic are less willing to wear business attire. According to retail industry analyst NPD Group, sales of men’s suits fell 62% from March to October compared to the same period in 2019. People are preferring comfort over style, a trend that was already in motion but accelerated by COVID-19. NPD analyst Maria Ragolo said consumers are “using active apparel for everyday purposes, which does not always include exercise.” This is good news for the makers of sweatpants, T-shirts, and even pajamas.

real estate: Commercial real estate has been one of the epidemic hit industries, and there is doubt as to how quickly it will recover. Vacancy rates for retail, office and other property types have been rising steadily since a year ago. Apartments are bucking the trend, benefiting from increased demand for housing. Real-estate-sector stocks are one of the few sectors to come down for the year. The epidemic forced millions of people to work from home to buy groceries and other goods and turn to e-commerce. These trends, already catching pace with the epidemic, have intensified. The question is how much they will affect demand once the epidemic ends.

fossil fuel: The oil industry was halted for travel in view of the demand for jet fuel and gasoline plummeting to prevent coronovirus. Due to a weak global economy and a cheap oil-filled market, producers were struggling before the epidemic. As coronaviruses spread and Saudi Arabia and Russia waged a price war, oil prices fell. Prices have dropped, but have fallen for the months to about $ 40 a barrel, which most producers need to break. The oil, gas and chemical industries laid off 107,000 workers in the spring and summer, according to a study by Deloitte Insights. Oil giants Exxon Mobil XOM,
Chevron CVX,
And others curb spending and downsize their workforce.


Leave a Reply

Your email address will not be published.