You are here: Home - Investing - Getting Started - News -

Investors flock to Netflix and other ‘stay at home’ lifestyle stocks

0
Written by:
29/04/2020
Netflix has seen a 900% increase in purchase activity compared to this time last year and other core ‘stay at home’ lifestyle stocks have also surged in popularity, an investment platform reveals.

Coronavirus has sent shockwaves across global stockmarkets, but there are select companies that are booming as a result of people adjusting to life on lockdown.

Popularity of ‘stay at home’ lifestyle stocks has surged and analysis of The Share Centre’s trading data reveals Netflix has seen a nine-fold increase in purchase activity compared to this time last year.

Video communication company Zoom has seen a 550% increase in purchase activity, while grocery delivery firm Ocado has seen a 336% increase.

Amazon has seen a 200% increase in buying activity with Microsoft at 143%, ahead of Facebook’s 43% rise.

Stay at home’ businesses emerge as winners of the coronavirus crisis

The investment platform said with consumer spending on these companies likely to be increasing, many are looking to match this pattern with their investment strategy.

This is a common strategy among investors and it can prove lucrative as these ‘stay at home’ stocks have enjoyed considerable returns over the period.

Zoom investors have witnessed total returns of 80.7%, while Netflix (17.4%), Amazon (8.1%), Ocado (5.9%) and Microsoft (5%) have all enjoyed growth.

Joe Healey, investment research analyst at The Share Centre said: “Matching your investment strategy with your spending habits can be a sensible approach and sticking to companies you’re familiar with, and you know are performing well, makes a lot of sense in times of uncertainty.

“‘Stay at home’ businesses are fast emerging as the winners of the coronavirus crisis and are acting as a strong addition for many investors’ portfolios as a result.”

However, Healey added that as with all investment decisions, investors should have a long-term outlook.

“The lockdown will eventually lift so investors should consider whether this is a company that will continue to deliver returns. The flurry of interest in these stocks does also leave them at risk of becoming over-valued, so investors should avoid getting caught up in any excitement and objectively consider the price before purchasing.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

Your rights for refunds if travel is affected by strikes

There have been a wave of strikes this year across many different industries, and more are planned over Christ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week