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The Firms and Industries the Pandemic has favoured
An insight into the record breaking amounts of equity being raised as a result of COVID-19 and how those that can raise capital will come out on top.
By Jack Garrard
22nd December 2020 11:30 GMT
In recent years the biggest companies in the world have been buying back their shares, but as we begin to see what effect the Covid-19 pandemic has really had on the economy this year, we can now safely say that one of them is the reversal of this, with record-breaking amounts of equity being raised.
Tesla has sold another $5 billion, Doordash has recently raised $3.4 billion, and AirBnB has become public. In the bigger picture this means success for the larger companies in each industry and this is best shown in the hard-hit cruise liners.
The big name in the industry Carnival Cruises could actually do well from the pandemic, as the firm received $6.25 billion in equity and debt back in April. Although setting sail on a cruise right now seems alien, they will eventually set sail once again, and the big names that have managed to outlast the smaller competition will thrive. This trend will likely be seen in all other industries too.
Another company which could see an unlikely return is Boeing, who sold $25 billion in bonds in the Spring, which should be enough to see it through until the end of the pandemic. Despite the failure of the 737 Max, one did fly from Sao Paulo to Porto Alegre, 20 months after the grounding of the fleet, and the ban on the aircrafts has been lifted in the US. But this is now in question after a report from the Senate Commerce Committee found that Boeing and the Federal Aviation Administration inappropriately coached test pilots.
In the wake of crashing markets and reduced consumer confidence, cash is king, and those that can raise the necessary funds will come out the other side on top.
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