For stock market investors, the first quarter of 2021 has been a busy time. Growth stocks outperformed early in the quarter, with stocks like Tesla, PayPal, and Shopify hitting new all-time highs. Concerns about inflation and rising bond yields damaged growth companies in the second half of the quarter, prompting investors to flock to ‘reopening’ stocks like Marriott International, EasyJet, and Carnival.
The reopening of the global economy could be a major subject in Q2. Many businesses will enjoy increased revenues and profit once vaccinations are released and lockdowns are lifted, especially those whose operations have been severely hampered by Covid-19 limitations. However, equities in fast-growing businesses like e-commerce, cloud computing, and digital payments should not be overlooked. As the global economy undergoes digital change, these types of industries will only grow in importance.
Best stocks to consider in 2021
Google and YouTube, the two most popular websites on the planet, are owned by Alphabet. It is the world’s largest digital advertising corporation and the third largest cloud computing provider. Alphabet should benefit in the short run as businesses increase their advertising expenditure. Covid-19 is a post-Covid era. A big increase in travel-related ad revenue is possible. The company is well positioned to gain from the expansion of the digital advertising market in the long run. This market is predicted to reach $980 billion by 2025, up from $304 billion in 2019, indicating that there is significant long-term growth potential.
Mastercard is a multinational technology company that specializes in transaction processing. Covid-19 had an impact on Mastercard in 2020 since travel expenditures accounts for a big amount of its income. The volume of ‘cross-border’ payments fell by 29% year over year, resulting in an 8% drop in overall revenue. Cross-border payment volume should rise dramatically as the global economy reopens in the coming months and the travel industry picks up.
L’Oréal is the largest cosmetics firm in the world. L’Oréal Paris, Maybelline New York, and Garnier are among the company’s brands, which are distributed in over 150 countries. During Covid-19, L’Oréal’s sales remained strong. In the second half of 2020, the company’s revenue increased by 4.8 percent in the fourth quarter. In 2020, online sales increased by 62 percent, accounting for 27 percent of overall sales. From here, the corporation hopes that internet sales may skyrocket.
ASOS is a British online clothes store with a global client base of 25 million people. Its goal is to become the world’s most popular site for fashion-conscious 20-somethings. The transition to online purchasing has benefited ASOS. Total retail sales increased by 24% in the four months leading up to December 31, 2020, with growth in the UK increasing by 36% year on year. According to the corporation, profit before taxes in FY2021 would likely be at the high end of market estimates.
Starbucks is the largest coffee company in the world. It has about 30,000 stores in over 80 countries throughout the world. Starbucks, which prides itself on being a meeting spot, should profit when vaccines are distributed and customers seek to catch up with friends in the coming months. CEO Kevin Johnson recently stated, “We are here for that wonderful human reunion.” “Starbucks was created for this occasion.” The company’s exposure to China is a crucial growth driver.