Courtesy of Benzinga
The coronavirus is not entirely indiscriminate in claiming economic victims: some companies seem much more immune than others.
Amazon.com, Inc. (NASDAQ: AMZN) and Chewy Inc (NYSE: CHWY) are among the conquering corporations, according to Jefferies, while eBay Inc (NASDAQ: EBAY) and Etsy Inc (NASDAQ: ETSY) are expected to suffer defeat.
Analysts are projecting an overall increase in customers for Amazon, flat growth for Chewy and declines for eBay and Etsy.
Their business models may explain why.
— Brian Sozzi (@BrianSozzi) March 29, 2020
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The e-commerce site and delivery service is deemed “essential” in many sheltered states and has been given permission to continue operations. With competing brick-and-mortar retailers shuttered, shoppers have turned to Amazon for their essentials.
Notably, the company is under pressure to raise prices as warehouse laborers strike in demand for more coronavirus protections.
Brick-and-mortar pet stores remain open for business as “essential” operations. But Chewy’s e-commerce platform offers unique convenience and, as many believe, safety. The online pet supplies retailer could seize new repeat customers in the near-term.
Spikes in unemployment will likely depress discretionary spending in the near term. Those who can afford to spend are taking precautions to limit contact with the contagion — which may mean avoiding products from vendors with unknown sanitation policies.
Etsy’s position is similar to that of eBay’s. The site’s offerings are not particularly critical for quarantine survival, and shoppers fear contaminants. Since early March, Etsy has removed coronavirus-related listings such as homemade hand sanitizer and alleged miracle herbs.