- Amazon, Apple, Alphabet, Microsoft, Adobe, ADP, Twitter are the corporations that have benefitted from digitalization. Alphabet (Google) and Microsoft have even benefitted from being in a more online space relatively.
- Shopify has struggled because it caters to small businesses – a dying sector, and that an online marketplace already exists with Amazon.
- No for Ebay as buying online is faster than trading items.
- Organized giant retailers – Walmart, Target, Costco, as others cannot compete with its volume driven business.
- Thrift stores like Dollar store, as the middle and lower class does budget shopping.
- Goldman, Morgan Stanley, Blackrock, Blackstone – Why would you not be part of elites businesses ?
- No for Disney. The end of family values and tourism, along with the wastage done with Disney plus online streaming.
- No for Lyft, Uber as it involves travel and gas prices are rising, along with the transitioning being done to shift to EV. Uber serves as a sustainable planet goal driven company which has been used to destroy small cab companies, rather than being a corporation to make money.
- No for travel companies like Expedia, Booking, and Airbnb. Travel and Tourism is dead. Airbnb does not offer comfort as a hotel.
- No for Banks. Banks serve the people and the economy is not going to grow. Also, small businesses are dying affecting profitability. Enough Bank consolidation has already taken place.
- Chipotle. Healthy and tastes right. Qdoba is dead.
- Starbucks – Global coffee chain having a great name.
- Retailers like Gap, Nordstrom, Express, Abercrombie are dead.
- No for Mall chains and types which got Amazon’d. Kohl, Macy, Sears, Tjx, Ross stores. Big Lots is a useless real estate wasteland.
- Yes for Mcdonalds. Yum brands is dying.
- No for New Age tech companies because of overvaluation – Snapchat, Wayfair, Pinterest, Palantir, Robinhood.
- Cisco, Juniper got Amazon’d with Cloud.
- No, for European companies because Europe lags America – SAP, Spotify and Just eat.
- IBM, HP and Dell are so 2005.
- Dead IT consulting with being low quality- HPE, DXC, Cognizant. Good ones have been Accenture and CGI.
- Hotel and Cruise industry is dead.
- Oil and Mining is dead.
- Chip companies have benefitted from mergers.
- Telecom sector has already undergone lots of mergers. ATT is dead.
- No for Chinese stocks like Alibaba due to obvious reasons.
- Real estate has saturated. Zillow is dead.
The above are general pointers to get an idea on the economy and that it does not have to translate into resulting in a big difference in stock returns because of merger and acquisition activities that gets taken.
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