Between the collapse of stock exchanges and the difficult situation of companies, the spread of the new Corona virus «Covid-19» has a very severe economic impact that may result in major transformations in the world, apparently the biggest beneficiary of it will be some technology and Internet companies.
With nearly a billion people in their homes around the world, everyone turns to electronic services and new tools that allow them to adapt to the exceptional circumstances currently prevailing.
“I think some aspects of work and organization will be permanently altered when out of the current situation,” said Professor of Organizational Behavior at the Saeed School of Business at Oxford University Sally Maitlis.
She explained that «people will discover that they can work and communicate in a way that had not occurred to them before so far. This will force them to adapt more to technology. ”
And the big websites of e-shopping registered an increase in orders at a time when consumers, in quarantine conditions, moved to purchase the necessary materials via the Internet.
On Black Monday for global exchanges on March 16, shares of American distribution giants Walmart and Amazon declined. However, “Walmart” then returned and rose by 23% from the beginning of the week, and “Amazon” shares rebounded again.
And Amazon confirmed: “We notice an increase in purchases via the (Internet), which led to the depletion of stocks of some materials, such as basic household items and medical supplies.”
On the other hand, Mike Cherry, head of the British Small Business Association, said that small independent stores are suffering the situation.
He explained that «this stage is basically very difficult for all small stores in the country. There are major concerns about supply chains at a time when turnout is declining continuously, saying that “the prospects for the future in front of these stores in the coming weeks are getting more pessimistic.”
In the face of the demand boom, several television and video companies via the Internet, such as Netflix, Canal + and Google (the parent company of YouTube), have reduced the quality of streaming broadcasts to reduce the use of the network to reduce the pressure on the “Internet” in Europe.
Streaming platforms across the world saw a 20% increase in turnout during the weekend, according to Bloomberg.
On the other hand, the audiences of major cinemas networks have retreated to an unprecedented extent, and some halls have temporarily closed their doors to contribute to efforts to contain the epidemic “Covid 19”.
In the United States, the shares of “Cinemark” and “AMC Entertainment” cinemas on Friday in the stock market fell by 60% from their highs in January and February.
With an increasing number of people moving to work from their homes, the demand for technology that enables online meetings has increased.
“There is a real upsurge in teleworking, to the extent that companies like Zoom have seen their shares rise in value,” a company that specializes in video conferencing, “said analyst Carolina Creative Milanese.
Meanwhile, business meetings and sports and cultural events continue to be postponed or even canceled, and a major question point remains regarding the Olympic Games this summer in Japan.
With many gyms closed, sports practitioners have turned to online lessons to continue their exercises at home.
The shares of the American company, Sports Equipment Piloton, rose significantly, as investors are betting on the increasing demand for its individual equipment connected to the Internet and its lessons over the network.
Airlines are paying a heavy price for home quarantine and border closures, many of which have reached the brink of bankruptcy. In light of this situation, the International Air Transport Association (IATA) warned Thursday that the airlines need urgent aid worth 200 billion dollars.
“The crisis is much more serious and broader than the period after September 11 in 2001, the SARS epidemic in 2002 and the global financial crisis in 2008,” said Union President Alexander de Juniak.
On the other hand, the demand has increased for private aircraft companies that are booming.
What the wealthy customers of these companies demand is to avoid sitting near hundreds of other passengers who do not know which countries they have visited before, according to Daniel Tang of Hong Kong-based My Gates.
“The inquiry requests have achieved an upsurge,” said Richard Zaher, chairman of the board of directors of a private aircraft company based in the United States, and reservations for his company had increased by 20 to 25%.