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Summary
- The pandemic saw many industries nearly bite the dust in 2020, including energy, aviation, industrials, etc.
- At the same time, a few industries witnessed an overwhelming boost in their business.
- Industries like gold, tech, online entertainment, logistics, health, etc. saw the demand for their products and services rise in the wake of the pandemic.
Year 2020 will go down in history for the COVID-19 pandemic and the havoc it wreaked around the world. Global lockdown, international trade suspension, disrupted productions, drop in demand of goods and services, etc. saw many industries nearly bite the dust. At the same time, a few industries witnessed an overwhelming boost in their business as the demand for their products and services rose in the wake of the pandemic.
Let’s dive into the details of such sectors that boomed amid the pandemic in 2020.
Gold Sector
While most mainstream sectors, such as energy, aviation, industrials, etc., suffered amid the volatile market condition, investors rushed to the safety of parking their funds in gold. As a result, the precious metal’s demand as well as price shot up this year, breaching the US$ 2,000 per ounce-mark in July.
Stocks of many gold exploration companies also reported positive gains this year, such as B2Gold Corporation (TSX:BTO), Barrick Gold Corporation (TSX:ABX), Kirkland Lake Gold Ltd (TSX:KL), Agnico Eagle Mines Limited (TSX:AEM), Yamana Gold Inc (TSX:YRI), etc.
©Kalkine Group Image
Technology Sector
Technology came to peoples’ rescue as the pandemic threw a wrench in how we go about our daily lives, be it terms of working from home, entertainment, shopping, etc. As a result, tech-oriented businesses bloomed, especially ecommerce platforms like Amazon Inc (NASDAQ: AMZN, AMZN:US) and Shopify Inc (TSX:SHOP), software service providers like Lightspeed POS Inc (TSX:LSPD), digital payment platforms like Nuvei Corp (TSX:NVEI), cybersecurity companies like Absolute Software Corporation (TSX:ABT) and BlackBerry (TSX:BB), etc.
Online Entertainment Sector
Speaking of technology, the online entertainment sector was a big relief to people in the midst of the lockdown that banned access to outdoor recreation. Netflix Inc (NASDAQ: NFLX, NFLX:US) registered a steep rise in its subscription services, along with other on-demand streaming platforms such Amazon Prime Video, Disney Plus, etc.
At the same time, online video gaming and esports industries also recorded growth as contact sports and parks closed down. Video game company Activision Blizzard saw its game ‘Call of Duty: Warzone’ reach over 75 million players by the second quarter of 2020.
Logistics Sector
As online orders skyrocketed in the middle of pandemic-stricken lockdown, logistics companies also reaped the benefit of record high deliveries. National data agency Statistics Canada recently reported that online retail sales shot up to C$ 36.2 billion in the nine months between March to September 2020, a significant 68 per cent year-over-year growth. While passenger airlines suffered, Canada’s top freight carrier Cargojet Inc (TSX:CJT) saw its delivery volumes surge and, in turn, its revenues and stock value also climbed since the onset of the pandemic.
Health Sector
The health sector felt the full blast of the pandemic, with frontline workers and health officials feeling the heat of rising infections, while pharmaceutical companies raced to come with a potential COVID-19 vaccine.
Simultaneously, the health industry made headways in demand with new technologies, online doctor visits, mental health consultations and other services to help people amid the pandemic.
Phama companies like Pfizer Inc, Moderna Inc, AstraZeneca, etc. shot into the limelight with the progress they made in the COVID-19 vaccine journey, while firms like Wellhealth, CloudMD and Mind Medicine (MindMed) Inc saw a rise in demand with new technologies.
As the economy reopens and the government becomes more equipped with dealing with the coronavirus, more sectors are likely to rebound from their losses. Year 2021 will go on to show if these well-performing companies also continue boom or slump.
