COVID-19 Company Impact, Pt. 1
The indicators of how COVID-19 is expected to impact the businesses of Chewy, Angi Homeservices, Carvana, and Credit Karma are included in the attached spreadsheet. We also provided the same information about the impacts to those companies below.
- Chewy's website states that due to COVID-10, "[c]urrent delivery times are running longer than usual."
- An article from a financial publication stated the following about how Chewy is being impacted by COVID-19: "Chewy stock has fallen about 5% through the first week of March  on the ongoing volatility around the coronavirus as investors have bought some stocks that might have been oversold last week. Its status as a safe harbor might not be perfect, then, and like other retailers, Chewy could experience some supply chain issues. But if the virus keeps people at home and disrupts daily life, Chewy should fare better than most of the market, since its business is mostly impervious to those challenges."
- That same article also noted that "pet products are among the most recession-proof industries."
- Angi Homeservices' share prices "fell [by 11%] on coronavirus fears toward the end of February ."
- Angi Homeservices' "stock has continued to fall through the first week of March , losing another 16% even as the S&P 500 finished up slightly."
- Carvana's website states that due to COVID-19, the company's is "[c]urrently . . . experiencing some delivery delays due to the CDC’s guidance for Pennsylvania and the Bay Area, CA." Carvana further notes that because the COVID-19 situation changes each day, it will promptly notify customers about any changes involving their deliveries.
- As a result of regional lockdowns, Carvana has closed some of its vehicle vending machines.
- A March 6, 2020, article from Investor Place commented on Carvana's falling stock price and stated "[a]utomobile stocks are plunging at the moment, which suggests investors are projecting weak industry revenue going forward" and "[i]t certainly seems like Carvana stock could, and maybe should, have more downside."
- Credit Karma's business model is such that it's paid by lenders or banks when customers choose their loan offerings. As such, the fact that "[t]he Federal Reserve, joined by other government agencies, has called on the financial services industry to 'meet the financial needs' of people who are affected by COVID-19" is likely to directly impact Credit Karma's business, as "[i]nterest rates have plunged during the coronavirus outbreak, and this has resulted in some of the lowest borrowing costs in history."
- In commenting on COVID-19 in a March 16, 2020, article, Bankrate's Chief Financial Analyst, Greg McBride, stated the following: "Reducing interest rates to borrowers will ease the burden of existing debts slightly but is unlikely to spur the usual surge of borrowing as consumers and businesses batten down the hatches for a coming drop off in U.S. economic activity."
- As a further showing of COVID-19's impact on consumer lending, there has been growing demand for "online ID verification" from fintech and online banking companies. An ID verification startup, Onfido, has experienced "a 21% increase in signups" in March 2020 . . . "[p]resumably so that people can gain access to financial services from their home without the need to go inside branches."
- Many of Credit Karma's customers are asked to provide proof of identification, as part of the process for seeking personal finance offerings, such as applying for loans or credit cards through Credit Karma.