Earlier this week, our fearless leader, Andrew, went on Ausbiz TV to talk with David Koch on how young people are investing during this coronavirus crisis, and how we’re seeing customers lean towards the portfolios we offer with a tech or innovative tilt.
(If you’re interested, you can watch the clip here!)
This isn’t exactly surprising news. If you’re part of the Spaceship cosmos, it’s likely because you believe in investing in forward-thinking companies, just as we do!
And now, perhaps more than ever, we might see why it pays to be a forward-thinking company, as a number of companies could stand to see lasting gains from this world-changing event.
Let’s start with cloud computing platforms.
Cloud-based software helps companies use software from any device, which is pretty essential when your workforce is suddenly required to work from home for long stints.
The big players in this space include Alphabet (with Google Cloud), Amazon (with Amazon Web Services), and Microsoft (with Microsoft Azure).
All are well known names that could see big gains.
Microsoft is also known for its business collaboration tool, Microsoft Teams. Microsoft Teams competes in this space against Slack, another messaging tool, and both services have become key to helping businesses stay in touch while working from home.
We use Slack at Spaceship — and we did so before this event — but it has certainly picked up in the last few weeks. Where we once used it for shooting messages to those on our team and staying on top of projects, it’s now a place where we share pictures of our pets and ask a quirky “question of the day” so that we can share jokes and stories.
(Shout out to the Spaceship employee who recently told us about his pet pig, Arnold Ziffle.)
As is typical of many world-changing events, things probably won’t ever return to exactly the way they were. When this is over, we might see businesses go back to the old ways of working, but we might also see more remote-work than ever before, which means services such as Microsoft Teams and Slack would continue to benefit.
While we remain in the midst of this weird moment in time, companies such as Apple and Google (Alphabet) are seeing gains in app store revenue as people download games and entertainment apps in droves. (They take a cut of app sales and in-app sales.)
Speaking of entertainment, streaming and gaming services are also revelling in this moment. Netflix, for example, has been one of the biggest disruptors of the film industry in recent years, but it still had to compete for eyeballs against major film studios.
With movie theatres shutting down across the globe, streaming companies are presumably picking up new customers left, right and centre, and they have the opportunity to convert these new customers into loyal fans that stick with them long past this moment.
And that’s the point. Our new normal — the life we live after the crisis is over — will no doubt have hints of the old, but mixed with the newly-entrenched habits we’re picking up now.
As we discover new ways to connect, converse, work, be entertained, stay healthy, and make money, we’ll take what works with us — and toss out what no longer makes sense.
And that’s just what a forward-thinking company does. To survive and thrive, they take what we still need from the past and adapt it to suit what comes next.
The forward-thinking companies we know and use everyday — and suspect you do too, as a part of the Spaceship cosmos — figured this out long ago. And as we move through this moment in time, they’ll be adapting so they continue to thrive in that new normal.
The Spaceship Universe Portfolio invests in Alphabet, Amazon, Microsoft, Slack and Apple and at the time of writing.
The Spaceship Index Portfolio invests in Alphabet, Amazon, Microsoft, Apple and Netflix at the time of writing.
Important! We’re sharing with you our thoughts on the companies in which Spaceship Voyager invests for your informational purposes only. We think it’s important (and interesting!) to let you know what’s happening with Spaceship Voyager’s investments. However, we are not making recommendations to buy or sell holdings in a specific company. Past performance isn’t a reliable indicator or guarantee of future performance.