It is the light at the end of the tunnel that the entire world has been waiting for since the beginning of 2020. As COVID-19 vaccines begin to make their way through our population and herd immunity is slowly established, a return to normal now seems closer than ever. While parts of the world have already reopened, a vast majority of countries are still imposing some sort of rules which require masks and social distancing. But the important part is that the economy is slowly reopening. Let’s take a look at two blue chip companies who are set to benefit from the world getting back to a sense of normalcy in 2021.
Mastercard ($380.08|0.62%): This could have been Visa ($222.52|0.83%) as well, the two are nearly interchangeable, especially at a time where we can expect consumer spending to surge. People have been locked in their houses and saving money for the past year, so once things reopen, we can expect an avalanche of spending on personal items and experiences. What do you think people will most likely use for this spending? Both companies have also recently dipped their feet into the cryptocurrency pool, after fintech brands like PayPal ($266.77|0.86%) and Square ($261.65|1.27%) both announced they were allowing their customers to buy, sell, and use cryptocurrencies on their payment platforms. The same can be said for global travel when that reopens. Plane tickets and hotels are nearly always charged to a credit card of some type, and most people do not realize how much Visa and Mastercard make on foreign exchange fees when their cards are used around the world. Add to this the continued availability of stimulus packages from the U.S. government, and Visa and Mastercard are both set to thrive when the economy reopens.
Walt Disney Company ($187.89|0.30%): Don’t let the fact that Disney’s stock recently just hit an all-time high fool you, this company has been operating at less than full capacity for the entire year. If it wasn’t for its Disney+ streaming service, Disney would have been decimated by the closure of its theme parks as well as the global movie theater industry. But now, with parks and movie theaters set to reopen, Disney now has three monster revenue streams that should push its stock to new heights in 2021. In just over a year, Disney+ already has more global subscribers than Amazon (NASDAQ:AMZN) Prime, as well as half the subscriber volume of industry leader Netflix (NASDAQ:NFLX). Disney hasn’t even launched its streaming service in Asia yet, which is home to two of its largest fan bases in Japan and China. Disney+ is estimated to be profitable by 2024, which means over the next three years, Disney is going to see a massive surge in revenues once all three branches are back in operation. Disney just hit an all-time high, but it may be the lowest prices you can buy the stock at for the foreseeable future!
Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.