During the Covid-19 pandemic, technology stocks received a huge boost as people around the world sheltered in place. Office workers had to purchase an array of electronics and software in order to manage their remote workforce.
Consequently, to the disdain of certain CEOs and commercial real estate holders out there, remote work has become more of the norm. Fortunately, investors can actually benefit from the remote work trend.
Let’s examine three stocks that have seen their revenue and earnings increase as remote work adoption continues.
Airbnb (ABNB)
Founded in 2007 and headquartered in San Francisco, California, Airbnb (NASDAQ:ABNB) represents one of the many faces of the new digital economy. The company primarily operates a platform that enables hosts to offer stays and experiences to guests worldwide. Through Airbnb’s marketplace, hosts and guests connect online or through mobile devices to offer and book spaces.
Booking Airbnb’s rose into popularity due to consumers’ desire to book vacation accommodation that felt more like being at home. The COVID-19 pandemic, of course, led to decreased travel. But, as soon as borders reopened in 2021 and 2022, traveling spiked significantly. Moreover, as the pandemic came to an end, both travel and remote work became a norm. People traveling globally while working are likely to book short-term stays through Airbnb. The company has continued to deliver double-digit revenue while boosting EPS to new levels.
ABNB shares have risen more than 21% year to date (YTD) and could rise even higher as remote work remains in the norm.
Alphabet (GOOG)
Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) requires little introduction at this point. The tech giant is not only the parent company of Google but also YouTube and Google Cloud. Because the company has its hands in several technology verticals, it’s been able to weather the macroeconomic environment better than other technology companies.
Further, Alphabet’s exposure to cloud computing has definitely boosted revenue since the COVID-19 pandemic proliferated around the globe in 2020. In its Q4’2023 earnings report, cloud continued to be the company’s growth engine, growing 26% on a year over year (YOY). As remote workers increase, so has the use of Google cloud products. Gemini, Google’s AI platform, will also be leveraging Google Cloud.
GOOG shares are trading flat in 2024, but at only 20.7x forward earnings, Alphabet looks like a buy.
Booking.com (BKNG)
Booking Holdings Inc. (NASDAQ:BKNG) is the world’s leading online travel agency, operating Booking.com, Priceline.com, Kayak.com, and Agoda.com.
During the pandemic, BKNG had been severely impacted as many countries imposed lockdowns and travel restrictions. This ultimately resulted in a sharp decline in global travel demand and revenue. However, the company has shown signs of recovery since these restrictions have been lifted worldwide.
In 2021 and 2022, respectively, revenue growth was in the high double-digits at 61% and 56% YOY. Furthermore, in 2023, the company delivered another year of solid double-digit growth. Similar to Airbnb, BKNG is benefitting from a shift to remote work, prompting many to travel more than previously.
The stock has increased 46% over the past 12 months and, with a relatively cheap multiple, could rise even higher.
On the date of publication, Tyrik Torres did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
