In the recent rotation out of stay-at-home and remote work stocks, some of the biggest winners took it on the chin. Shopify (SHOP 0.35%), Zoom Video Communications (ZM 2.64%), and Teladoc Health (TDOC +5.05%) were among the stocks caught up in the decline. Yet all of these companies have a secret weapon that will help drive their stock prices higher in the months and years to come.
On this episode of Fool Live that aired on Nov. 9, "The Wrap" host Jason Hall and Fool.com contributor Danny Vena discuss the rotation out of some of this year's biggest winners and why that might be a huge mistake.
Danny Vena: If you look at some of the other stocks that are being discussed here, Shopify, Zoom, Teladoc. I've said this before, probably more times than people want to hear, but these are big overriding trends.
Just because there is a vaccine for the coronavirus doesn't mean that e-commerce is going to go away. The adoption might slow a little, but e-commerce is here to stay.
You look at Zoom video, people have figured out just how handy it is to be able to jump on their computer and have a meeting. Whether it's a personal meeting or a business meeting, or whether it's an episode of Fool Live. This is handy for people and I still think there are going to be some meetings that people are going to want to have in person. I'm not saying it's going to take over all of the meetings, but the fact that you can have family members join you for the holidays from a distance or that you can have meetings with your colleagues at a remote location. I think that Zoom is going to be fine.
I think e-commerce is not going anywhere.
I think the final one was Teladoc. Teladoc was soaring even before the pandemic made people a little bit more reticent to go to their doctor's office. But telehealth, if you're sick and you don't really want to get out of your bed, you don't want to take a shower and get dressed and brush your teeth and get in the car and drive to the doctor's office and sit in the waiting room and then go sit in the examination room and wait there some more, when you can get on an app on your phone and have a doctor visit without all of the inconvenience. So I would say for all of these stocks, there are tailwinds there and because there's a vaccine doesn't mean those tailwinds are going away.
Jason Hall: Yeah because the thesis has been around since before. This has been an accelerant, this year has been an accelerant for them to build their businesses and to establish some relevance. I think what's going to happen with Zoom is a ton of companies, a ton of organizations will now transition from and have already started having this conversation. Some organizations on part of besides the Fool, Fool Live, this is a great example. A lot of organizations have transitioned from, "this is the only way we can communicate in groups" to, "here's all these great ways we can use this when we do start returning to in-person meetings". It's just going to be really, really powerful. So I think you just have to have a little more imagination. I think that helps.
