2020 will have several asterisks in the history books. The course of life and work has obviously been transformed, bringing new rules and demand signals for the tech sector. As Omers Ventures’ Michael Yang expressed at Localogy 2020, there are “Covid-advantaged” and “Covid-disadvantaged” businesses.
The former consists of eCommerce, communications and entertainment, while the latter is all about brick & mortar and commercial real estate. eCommerce is the poster-child of the last 9 months, and its exemplars are those who’ve pivoted quickly to shifting market factors, as we’ve examined.
Beyond that generalized backdrop, who are the companies that have grown the most in these “uncertain times?” More importantly, how much have they grown? Law Firm Parker Waichman has scratched that itch with a classic piece of content marketing that quantifies the “Covid-advantaged” lot.
To do this, it compiled data from the Financial Times to rank companies that gained the most equity value in the first two quarters of 2020 (through June 17). Keep in mind that these are valuation rankings, not revenue growth, though the latter certainly has an impact on the former. Check out the full list below.
Breaking it Down
What can we learn from this list? Taking the top ten as a representative sample, they’re all tech companies. There’s good coverage for eCommerce, given Amazon’s top ranking with $401.1 billion. Parker Waichman poses the question if Amazon could gain $1 trillion in value once 2020 is over, considering holiday sales.
You could argue that PayPal has ridden that same eCommerce wave, showing up ninth in the rankings with $65.4 billion in equity growth. And Shopify’s $51.4 billion growth places it 14th. Netflix is also notable at 12th place with $55.1 billion, but few other pure entertainment companies are on the list (Apple overlaps).
Zoom is a clear Covid-era standout, given that its momentum and pole position prior to a work-from-home explosion has elevated the company to “verb status.” It logged $47.9 billion in 1H 2020 growth. Top-10 scorers Microsoft, Apple, and Alphabet also fall within that digital communications bucket to varying degrees.
Facebook’s $85.7 billion in equity growth is driven by similar communications demand… but on the social-connection side. Nvidia is a notable wild card whose $83.3 billion in growth is presumably tied to the explosion in gaming for sheltered-in-place masses. For those unfamiliar, it’s a best of breed GPU provider.
Check out the rest of the list above, which even includes brick & mortar (Home Depot) and automotive (Tesla). We’re surprised to not see Walmart and Target given a few blockbuster quarters in 2020, but we’ll keep watching for further market signals. Meanwhile, let us know what observations we missed.
Data Scout is Localogy’s series that curates and draws meaning from third-party data. Running semi-weekly, it adds an analytical layer to the industry data that we encounter in daily knowledge building. For Localogy original data, see the separate Modern Commerce Monitor™️ series.