Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
If the year 2020 has proven anything, it is that the world is unpredictable, especially the business world. COVID-19 has impacted both currencies and stocks across the world. With the virus yet to be contained, there is notable talk of a second COVID-19 spike in the not so distant future.
Stocks to Buy in Second COVID-19 Spike
Should a second spike occur, the stock market could very well crash once again. In this article, we will be going through the three stocks to buy in the face of a second spike, should a second stock market crash occur.
As a company, Fastly has had an interesting year. In March of 2020, it saw a sharp decline, as did most stocks after the markets closed. However, the shift to remote working ended up working well in its favor.
Fastly specializes in providing computing and Content Delivery Network (CDN) platforms. This is the sort of backend technology that drives delivery apps such as Uber Eats and also facilitates the provision of data from the cloud. These apps saw mammoth growth following lockdown measures and thus, so did Fastly’s stock.
Their stock saw an increase of over 500% as markets reopened, and it is expected to remain profitable well into 2022. If the second wave of infection does occur and the markets crash, Fastly’s stock will be made more accessible for those who missed the first time. If history repeats itself, those who hold their stock will likely see their investment appreciate significantly.
Companies whose services have proven invaluable during the COVID-19 outbreak have thrived in terms of stock value, and Livongo Health is no exception. Like Fastly, they saw a dip in stock value in March 2020 but have since recovered with gains.
Livongo Health provides technology for the healthcare sector. More specifically, they specialize in support for individuals who are living with chronic conditions. This sort of monitoring and support for chronic illness has been in unprecedented demand during the pandemic, and even after, it is likely that there will still be the need for such technology.
Considering the fact that their stock took a hit during the first outbreak, a second one might also lower the stock price, making it more affordable. If you wish to invest in stock with long-term growth potential, then Livongo Health appears to be a good choice.
This company deals in programmatic advertising, and this business is poised to expand rapidly in the next decade into an industry worth over a trillion dollars. However, The Trade Desk did suffer some setbacks due to the virus outbreak. This is because a large portion of its business model is based on ad purchases by agencies, which suffered due to the outbreak.
Their stock did recover regardless, and the next few years are shaping up to be profitable ones, according to market trends. It is not impossible that their stock will decline once again. This, however, could be a good thing as short-term rallies could be sacrificed for long-term profits by investors. If you are looking to make such an investment move, The Trade Desk could be a good option for you.
A second infection wave would likely result in another economic shutdown, meaning stocks are likely to decline in value. At the same time, it could be a golden opportunity to get in on valuable stocks at a lower price in anticipation of long-term growth.
Feel free to consult our list above of the best stocks to buy in the wake of a second COVID-19 spike. Should a second market crash occur, be sure to conduct your own research and consult with a licensed financial advisor.