Companies benefiting from coronavirus

Companies+benefiting+from+coronavirus

Photo by Flickr

Jake White, Business Manager

As the coronavirus pandemic continues to force more people out of work each day, the markets and the economy have continued to fall. However, as most of the financial market, including virtually all small businesses, continue to fall from the historic highs they were at right before the virus hit, some businesses have been able to make great profits due to the pandemic.

One industry that has seen a boom in production since the outbreak has been household hygiene products, such as toilet paper, disinfecting wipes, hand soap and others. People have been cognizant of their personal health and hygiene since the outbreak, and have in turn, begun to purchase more products like these to stay healthy. 

According to Kimberly-Clark Corporation, a large toilet paper distributor, their stock has risen 13 percent in the first fiscal quarter of 2020. This is greater than what Wall Street projected for its stock before the pandemic hit. Clorox, which sells disinfecting wipes among other household cleaning items, has seen its stock increase by 17 percent already.

Another business benefiting from this pandemic is Zoom Video Communications. Although Zoom is banned in Westfield Public Schools, the company is still being used all around the world, as schools and businesses seek a convenient way to communicate while social distancing. According to US News, Zoom’s revenue has increased by over 78 percent since last year. 

The pharmaceutical industry is also witnessing a lot of growth during this time, as investors have flocked to these companies in the hopes that they can invest in the right company that will find the vaccine for COVID-19. The pharmaceutical company that does find the vaccine for this virus will surely make a lot of money. One company that is leading the charge to find the vaccine is Moderna, which has announced that they have already sent samples of their vaccine to the National Institute of Allergy and Infectious Diseases. This has resulted in Moderna’s stock skyrocketing as the company appears to be the current frontrunner to finding a vaccine. 

Since not all companies sell products that are of necessity during this pandemic, many have needed to find ways to adapt. Restaurants and grocery stores have begun to use more delivery services, and fitness services have turned to video communication to keep clients. 

Even though many companies have been benefiting from this pandemic in the short-term, this does not mean it will be great for all of these businesses in the long-term. WHS Economics Teacher James Lane said, “The current business environment is not good for anyone because it is not currently a free market situation.” 

Because it is not a free market situation, at one point the market will begin to inflate as all other businesses need to raise prices to keep up with new health regulations that stem from the pandemic and make back the revenue they lost during the pandemic. This will in turn be bad for all firms in the future, regardless of if they’re doing well now. 

The coronavirus is a clear example of how an external factor can play a large role in impacting the economy of a capitalist country like the U.S. As the virus continues to spread and change the markets, it shows how it is a true testament to capitalism at work. The demand will fuel the market, and companies have learned to adapt to the demand of the market in order to remain profitable.