This has been a year to remember, and it isn’t over yet. Investors have already had a front row seat for the fastest bear market decline in stock market history, followed by an equally rapid recovery for much of the market. Unfortunately, the broader economy hasn’t recovered as quickly as the market. While the unemployment rate has…
abated somewhat from its recent record highs, it still stood at an astonishing 7.9% in September, which is high by any measure.
This has some investors waiting for the other shoe to drop and the market to turn downward again, with some prominent market watchers warning about the looming potential for a double-dip recession.
While we don’t know what the future will bring, there’s little doubt that another crash is always potentially somewhere on the horizon. Whether it comes now or later, stocking your portfolio with strong companies that have solid growth prospects can help minimize any temporary discomfort.
Let’s look at three disruptive companies that will be thriving long after the next market drop.
1. Amazon: As other industries suffered, e-commerce soared
It shouldn’t be surprising to find Amazon (NASDAQ:AMZN) on this list. Even as the pandemic took hold and provided a catalyst for the market downturn that dominated headlines in February and March, Amazon stock held its ground, never falling more than 12% from peak to trough. That’s not all. Since bottoming in late March, Amazon has come roaring back, gaining 75% in the months since. What provided the tech titan with the resilience to hold its own during the darkest days, just to become an outperformer when the stock market regained its footing? In a word, consumers.
Amazon Prime boasted an estimated 112 million subscribers in the U.S. to close out 2019, according to Consumer Intelligence Research Partners. Wanting to get the most bang for their buck, the majority of these subscribers aren’t likely to curtail their spending on the platform.
In fact, as the pandemic raged across the world, consumers turned to digital shopping in droves. As the world’s largest e-commerce retailer, Amazon gained legions of new customers. This was evident in the company’s net sales, which jumped 26% year over year in the first quarter. Not to be outdone, sales in the second quarter accelerated, increasing by 40% year over year, while net income nearly doubled.
At the same time, overall e-commerce growth soared 44% year over year in the U.S., but still accounts for just 15% of total retail sales. This shows that the trend is ongoing, with plenty of room to grow from here.
With its industry-leading position, Amazon is uniquely positioned to take advantage of the strong tailwinds, giving the company a long runway for growth.
2. NVIDIA: A key part of the cloud computing and AI equation
While a number of industries were punished by the market crash that began in February, not all industries were equal. Cloud computing quickly emerged as a safe haven for companies sending their staff home to work remotely, accelerating the digital transformation that was already ongoing. While the next market crash will be different, once a business has adopted cloud computing, there’s simply no going back. One company uniquely positioned to benefit from the trend is NVIDIA (NASDAQ:NVDA), the pioneer of the graphics processing unit (GPU).
While the company isn’t a cloud provider as such, its processors are a mainstay in every top cloud computing platform, including Amazon Web Services, Microsoft Azure, and Alphabet‘s Google Cloud, just to name a few. The parallel processing capability — or the ability of the GPU to handle multiple complex mathematical calculations simultaneously — made it a perfect fit for the unique processing requirements of data centers, as well as artificial intelligence and machine learning applications. As demand for cloud computing increased, NVIDIA reaped the benefits.
Need further proof? For the second quarter, NVIDIA generated record revenue that…
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