Table of Content
The table below shows 12 US-based stocks offering exposure to the work-from-home trend, as well as these new leisure and health care activities. It’s not exhaustive, and some may wonder why stocks such as Microsoft or Facebook, with its video conferencing and Workspace products, are not on the list. The short answer is that we want to highlight the most direct exposure possible and Microsoft and Facebook get the majority of profits from their core businesses in operating systems and online advertising. Many businesses have been pushed years ahead of their original schedules in terms of moving to software-based remote working and communications solutions. However, I would be wary of more speculative stocks that have yet to show consistent earnings. The next pick on my list of work-from-home stocks is actually not a stock but an exchange-traded fund .
Bernstein analyst Zane Chrane boosted his 12-month price target in June from $157 per share to $228. He thinks Zoom will show strength "among enterprise customers where we expect reduced churn and strong future expansion," and anticipates positive sales and earnings surprises for the rest of this year. (See #8 above.) Currently, I don't see other sources for financing other than Softbank, which is one of the major reasons, in my opinion, why any new loan from Softbank could be recharacterized as equity interest. To avoid this risk, the terms would have to be extremely restrictive, including a very high interest rate, to make it look like a real "loan" to a high-risk company and not an equity interest transaction. A very high interest rate would have a negative impact on cash/cash flow, which is the primary reason for the loan.
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It now provides Big Data search capabilities for the enterprise customer. Elastic has outgrown its apartment startup mode and now has more than 11,000 customers, with 610 of them generating annual revenues over $100,000. Many companies have indicated that even after a COVID-19 vaccine is widely available, they will still have their teams working remotely at least part time. The ability to work online has prompted many full-time employees to switch to the freelance business.
Before people wanted access to a nice conference room if they needed to meet with customers. They can also use the old standard business lunch at a restaurant for a meeting. You’ve probably realized now that most of these work from home stocks are tech or software-based companies. Truth be told we wouldn’t be able to work from home if technology was not as advanced as it is. Video calling, cloud computing, cybersecurity, digital certification, all of these are a part of the future of how we work.
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Here's how to take advantage of the long-term shift toward digital workflows. Following the challenges that faced the Japanese Yen in 2022, the Bank of Japan attempts to keep the currency from sliding. Unsuccessful on the long-term, Japan will launch a reset of its entire financial system. With continued challenges in the region and a US military that isn't aggressively enacting its former role as global policeman, the European Union agrees to create its own armed forces, bringing the whole region closer. Sure, DocuSign has gotten a huge boost from the work-from-home trend.
But more importantly, the company delivered its first three months of positive EBITDA. Chewy also added a record 1.6 million net active customers, which is more than twice its typical quarterly customer growth. Its customer base of 15 million active customers is nearly 33% larger than it was in the year-ago quarter.
Best Work-From-Home (WFH) Stocks to Buy Now
If you’re not yet convinced that remote work is sustainable, let’s go over some recent statistics on its benefits to businesses and employees alike. Hopefully, this will convince you that this is a trend worth keeping an eye on. ETF investing continues to increase in popularity, with an ever-growing number and type of exchange traded funds to choose from.... All told, investors are up a staggering $947 billion this year on the 40 work-from-home ETF stocks. The ETF itself rose 0.5% on its first day of trading Thursday. Twilio, another remote communication firm with an outstanding leadership team, is up 120% this year.
In my opinion, I am not sure that SoftBank is willing to take risk that any new loans to WeWork could be recharacterized as equity interest by a SDNY bankruptcy judge if WeWork files for Ch.11 in the future. HubSpot is aiming to grow sales by over 30% in 2022 as it pushes profit margins higher by at least two percentage points. With major growth avenues available, including outside the U.S., its customer footprint -- and earnings power -- should be much higher five years from now. Investors will be just as happy with Airbnb's improving financials.
DocuSign (DOCU)
San Jose-headquartered payments platform PayPal, which enables digital and mobile payments, is widely used worldwide. You are probably familiar with its range of payment solutions, such as PayPal, PayPal Credit, Braintree, Venmo, Xoom and Paydiant. Since its inception in June 2020, net assets have grown to nearly $174 million. WFH, which has 40 holdings, follows the Solactive Remote Work Index. IBD Videos Get market updates, educational videos, webinars, and stock analysis.
What’s more, another factor in DocuSign’s rapid expansion has been an increase in buying homes and vehicles online during the pandemic. The new normal has undoubtedly contributed to DocuSign’s explosive growth. Since most white-collar employees are now working from home, even documents have to be signed by multiple people virtually. Naturally — with so many people staying in — pizza delivery has benefited from the current work-from-home trend.
That shift helped propel soaring demand for longer-term stays on its platform. The company booked 175,000 rentals last year that lasted at least three months. The key risk for this basket is of course rising interest rates, which could hit valuations hard and thus set in motion a sharp correction in these stocks. With a free cash flow yield of 1.23% the valuation is aggressive and leaves little margin of safety for any deviations for the current discounted trend. The production and quick global rollout of a Covid vaccine is another key risk as it could cause a rollback of the work-from-home trend before it has fully established itself.
There is also technology like Vault Platform that includes software for whistleblowers to report anonymously. As someone who has worked with whistleblowers for over two decades, Inman believes that the culture shift brought on by the pandemic and remote work could lead to more permanent change. She sees whistleblowers as a necessity — and the reason that companies are now in a vulnerable position. In terms of valuation, you could say that these stocks are mostly still in the speculative stages. Salesforce's net income was in the negatives for a good chunk of its history, and DocuSign has yet to post an annual profit.
Right now, this slowdown doesn’t appear to be priced into DPZ stock. The shares are trading at a forward price-earnings ratio of 30 and a trailing price-earnings ratio of 37. Just as the world resumed life after past pandemics, things will eventually go back to normal. As that transition occurs, many companies that are currently benefiting from the work-from-home trend will start to lose revenue.
If one company offers remote work and a competing rival doesn’t, we can probably assume which would get more applicants. Whichever side of the argument you land on, working from home is definitely here to stay in one form or another. The transition was so seamless that a number of big tech companies have moved to permanent remote work. Jack Dorsey seems to be a big supporter of working from home as both Twitter and Square have switched to it permanently.
But there certainly wasn’t as steep a dropoff as many expected. Employee morale went up, people willingly worked harder and longer hours because they knew there was no long commute waiting at the end of the day. After being demoted, she found Project South and the Government Accountability Project, which filed complaints to the Department of Homeland Security's Office of Inspector General on her behalf.
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