Another election is already in the book, but things aren’t nearly as clear as we would like, at least for this post in the early evening of November 4, 2020.
No matter how the White House changes, we might have a divided Congress. The House of Representatives will remain under the control of the Democrats, while the Senate will have a small Republican majority. Such a split on Capitol Hill often means that influential policy proposals have little chance of being passed.
There’s good news for investors here. Some game-changing stocks will be fine no matter the election outcome. Innovative companies with a clear competitive advantage or being early adopters can make their shareholders rich over time. Here are three main examples.
While I’m violating the rules a bit by choosing a Singapore-based company that focuses on Southeast Asia, the reality is Sea Limited (NYSE: SE) completely unaffected by what’s going on in Washington.
Sea’s current main revenue driver is the digital entertainment segment where mobile games are located Garena’s game. In the last quarter of June, Garena’s game hit more than 100 million daily peak active users, with games helping to drive users to pay quarterly in the gaming sector up 91% year over year. There is no doubt that the 2019 coronavirus (COVID-19) pandemic has affected these numbers, with people trapped indoors for entertainment. However, Sea’s digital entertainment services have been doing well even before a pandemic.
However, investors do not support Sea because of its gaming segment. They are doing so to hold a stake in innovative online shopping platform Shopee. Southeast Asia has a growing middle class, and the Sea is just scratching the surface of regional consumer demand. In the second quarter, adjusted revenue grew nearly 188% year-on-year, with its total network cargo volume more than doubling to $ 8 billion. Shopee looks like it will be an absolute e-commerce monster in just a few years.
Sea has also been tinkering with digital financial services. It already has more than 15 million people registered to its mobile wallet services, and should have no trouble building the platform in a region with many banks around the world.
In the short term, Sea Limited will break it down for shareholders.
Another innovative company that can thrive whatever happens with the election is cybersecurity stocks CrowdStrike Holdings (NASDAQ: CRWD).
When the COVID-19 pandemic happened, it completely changed the traditional working environment, traditional retail and consumer behavior as we know it. Businesses have no choice but to get their products and data online and in the cloud. This trend went well before the pandemic, but it accelerated in 2020. That’s great news for security solutions providers like CrowdStrike, which offer basic service to business customers. Karma.
CrowdStrike’s Falcon platform stands out because it’s cloud-sourced, meaning it’s built in the cloud for cloud-based security applications. Falcon monitors more than 3 trillion individual events each week, relying on artificial intelligence to improve the identification of potential threats to business data. This cloud-based approach is actually cheaper and more efficient for businesses than on-premises security.
CrowdStrike is also becoming increasingly adept at attracting its customers to spend more. More than three years ago, only 9% of CrowdStrike customers had four or more cloud module subscriptions. As of the quarter ended in June, that figure had risen to 57%. The company more than doubled its registered gross margin to 75% in just three years.
This company has dollar symbols written all over it, regardless of the election results.
One ultimate game-changer with tools to make investors rich is healthcare stocks. Teladoc Health (NYSE: TDOC).
Teladoc has been a major beneficiary of the pandemic. With doctors wanting to keep at-risk and potentially infected patients out of their offices, insurance companies and physicians have encouraged virtual visits. In the just-finished third quarter, Teladoc saw its total remote check-ups increase by 206% to 2.84 million year-on-year. Throughout the year, the company is achieving an average of 10.5 million virtual visits.
Telemedicine is a win-win for the healthcare space: It’s the benefit of convenience for the patient, a win for doctors who can probably see more patients and win companies. Insurance often get a lower bill for virtual exams.
Teladoc also recently completed a cash and stock acquisition of app health signals company Livongo Health. Using artificial intelligence, Livongo collects data and sends incentives to members with chronic illnesses to encourage long-term behavioral changes to improve health outcomes. Before being acquired, Livongo has a history of doubling or nearly doubling its members with diabetes every year.
As a combined company, Teladoc-Livongo will provide next-generation care with virtual visits and seamless patient data access to doctors. This company is the future of the healthcare industry in America and could make a lot of money from patient investors.