Will the COVID-Crisis Launch a Digital Boom

There is an opportunity in every crisis. It sounds corny, but it’s true – Amazon’s investors will agree. The company’s share price has reached an all-time in April, while the overall stock market has suffered its most significant loss since 2008. 

Why Amazon? 

The company is one of the world’s most significant digital players, with its eCommerce platform and Amazon Web Services. As social distancing has forced people to use digital technologies, investors believe companies like Amazon will experience massive growth over the coming months.

Short-term boost for digital applications 

What choice do consumers have, other than ordering goods online? As brick and mortar stores remain closed, the internet is the only alternative. 

But it’s not only eCommerce businesses that benefit. As everything has to happen online now, pretty much every company that offers digital services is in an excellent position.

Zoom Video Communications, for example, a platform for video-chats, has also seen its share price going through the roof since the start of the year. Netflix just released its first-quarter earnings that showed monster subscriber growth. 

A paradigm shift? 

It’s not only about short-term growth in the stay-at-home era. The COVID-crisis could also have massive impacts on digital businesses in the long run. 

Now that households, businesses, and governments have to self-isolate, even those who have so far shied away from using digital technologies will experience how practical and convenient they can be. This could lead to a shift in mindset among consumers and companies and increasing demand for digital applications.

Take, for example, online learning or digital visits to the doctor. Sure, not every medical consultation can move to a video-chat room, but some certainly can free up time and reduce costs. The same goes for financial applications – like a loan application or a payment transaction – business meetings, shopping, and much more.

As the pandemic teaches us to use digital technologies, new ideas and business models will emerge. Therefore, this crisis might result in a massive boost for digitalization, reshaping the world in a much more positive way than we can today anticipate.   

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