The COVID-19 pandemic has caused markets to act erratically for the majority of the last two years. February 2020 saw stocks enter a freefall, before a myriad of unexpected ups and downs over the past 23 months left us all wondering what could possibly be next.
Well, as global vaccination rates continue to rise and we move out of the cold grips of winter, there’s certainly cause for hope. We definitely don’t want to get ahead of ourselves, but as the world continues to recover we opted to take a look at three stocks that could grow massively following the ‘great reopening’.
Airbnb (NASDAQ: ABNB) has already done an exceptional job of navigating the pandemic. With travel and hospitality both severely impacted, the company has still managed to record decent growth after a worrying drop back in May.
It maintains relatively strong growth financially which it owes, in part, to an increase in the average rate a host charges per room. The company has cashed in on people’s ability to work from home by offering an assortment of properties for people to work from in peace. This is reflected in the rising number of stays booked for longer than a month.
Airbnb also benefits from the disconnected nature of its hospitality offerings. People are still remiss to stay in large hotels where hundreds or thousands of people might be congregating at any one time. Airbnb offers a safe alternative where you can be in total control over who is staying at the property.
As we move into 2022, we expect a lot of the good sentiment gained by Airbnb throughout the pandemic to remain as people tentatively look to explore a return to travel. Airbnb looks set to be one of the major benefactors in the coming months.
Disney (NYSE: DIS) has posted a largely mixed year so far. The pandemic offered it a chance to double down on its efforts to make Disney+ a true challenger to Netflix’s domination of the streaming world. Despite performing admirably, it has yet to really transition into a true challenger for the crown.
While all this was happening, some of Disney’s more lucrative enterprises were forced to shut down. Disney’s theme parks and cruises in particular took a major hit across the first half of the year. Even with some restrictions lifted a few months ago, international travel remained slow and left Disney’s numbers below expectations.
As we begin to emerge into brighter days, the company will be hopeful that decreased restrictions and increased travel will provide a much-needed boost for revenue. Customers will likely return in droves the second it’s safe to do so. Once this happens we can see Disney profiting immensely from renewed interest to solidify itself as one of 2022’s early winners.
Bumble (NASDAQ: BMBL) has had a rough start to life as a publicly-traded company. Since debuting just in time for Valentine’s Day this year, the company has dropped heavily amidst the pandemic. However, the company maintains a lot of upside which could ultimately see it emerge as a stock to watch entering 2022.
Visionary founder Whitney Wolfe Herd remains at the helm, something which investors should be jubilant about. Wolfe Herd, a co-creator of rival dating app Tinder, has helped mold a company that’s central tenet is to empower women. This shines through from its flagship app, where women are totally in control of the dating experience, to the boardroom, where eight of the eleven seats are occupied by women.
Added to this, dating has been massively curtailed since Bumble opted to go public. Meeting strangers in the middle of a pandemic is many people’s idea of a nightmare, so as restrictions ease and confidence to socialize returns, we should see a huge increase in dating app use. The company tried to innovate as best it could through the addition of video-dating, but this could only ever bring the business so far.
Bumble is still very young in terms of its trading life, and never really got a fair chance by debuting in the height of a global emergency. As things begin to normalize the return of in-person dating could see Bumble as one of the biggest growth companies in 2022 and we’ll certainly be keeping our eyes firmly on its results.
Financial Writer at MyWallSt
Pádraig’s favorite stock is Nike. Growing up as a sports fanatic, seeing Nike collaborate with athletes like Jordan, Lebron, and Ronaldo inspired him and cemented the brand in his mind. Now, despite having failed miserably in his attempts to earn a fabled Nike sponsorship, he still believes in the innovation and creativity behind Nike and is convinced they will only grow stronger as the world's leading sports brand.