The coronavirus pandemic is causing supply chains disruptions worldwide. People who get sick with COVID-19 are forced to quarantine at home, and with more than 1 million people worldwide testing positive daily, employers are short-staffed.
Some of those understaffed businesses are manufacturers, logistics operators, and others vital to the global supply chain. The rise of the highly transmissible omicron variant could prolong these supply chain disruptions well into 2022. For that reason, it may be prudent for investors to add stocks that are immune to such problems.
Supply chain bottlenecks are hurting businesses that rely on physical goods. Image source: Getty Images.
Airbnb is a different kind of travel stock
The worldwide travel facilitator Airbnb (ABNB -1.52%) generates revenue from its online hosting platform. Unlike hotel businesses, Airbnb does not own or operate any rental properties. Its website and app bring together travelers and hosts, taking a small fee from hosts.
Airbnb grew revenue by 42.6% and 32% in 2018 and 2019, respectively, before the outbreak temporarily halted its growth in 2020. Airbnb is recovering in 2021; its revenue in its most recent quarter was 36% higher than the comparable quarter in 2019, and net income grew by 213%.
Moreover, Airbnb's business is not dependent on physical inputs to any significant degree; it benefits from the existing supply of homes and apartments.
DraftKings' investors are betting that "the house always wins"
DraftKings (DKNG -1.69%) offers daily fantasy sports betting, a mobile sportsbook, and iGaming (casino-style games online). Since DraftKings' business is almost entirely online (some in-person registration could be required in certain states), it is immune to supply chain disruption.
Moreover, shortages of materials and workers may help DraftKings competitively. Brick-and-mortar casinos are dependent on a meaningful amount of physical goods -- think restaurants that need food, shops that need clothing, and of course, bars that need alcohol.
DraftKings has accelerated revenue growth for three years, increasing by 17.9% in 2018, 42.9% in 2019, and 90% in 2020. If DraftKings' growth slows down in 2022, it will not result from supply chain trouble.
Netflix's deep content database can keep viewers busy
Streaming content pioneer Netflix (NFLX 0.12%) has grown to a massive scale. As of Sept. 30, Netflix boasted 214 million subscribers. That was 19 million higher than the same time in 2020.
Netflix's immunity from supply chain problems comes slightly differently from the previously discussed businesses. Netflix relies on an ample supply of workers to create fresh new content for its platform.
However, during the initial stages of the pandemic, when pandemic-related restrictions halted many productions from several content providers, Netflix's business thrived. That's because with an industrywide production slowdown, everyone spent less money, and profits and cash flow soared.
The COVID-19 pandemic has persisted for a couple of years, disrupting the lives of individuals worldwide. Thankfully for investors, Airbnb, DraftKings, and Netflix are three stocks you can invest in that are immune to the supply chain problems caused by the pandemic.
