FX.co ★ 3 companies to benefit from stock market crash

Block

Block Inc., the parent company of Square, tops our list of firms able to benefit from a stock market crash. Experts consider it the main beneficiary of the COVID-19 pandemic. Block’s stock has shown growth during the pandemic amid the rapid development of e-commerce. Nevertheless, the company has recently experienced some turbulence due to a mass sell-off among fast-growing IT firms. Its value has decreased by 21% since early 2022. Block’s stock is currently trading down by 56% from its high of $289.20 per share. The firm’s market capitalization totals $73.8 billion. Still, Block’s management has optimistic hopes and expects Block to dominate the industry of mobile digital payments. The company’s annual revenue has increased by 30% to $4.09 billion owing to the strong performance of Cash App, a mobile payment service. Analysts project Block to surge by 95% to $248.84 per share.

Cloudflare

Cloudflare, whose stock plunged in early 2022, takes second place on our list. The company’s value skyrocketed by 354% in 2020 and rose by 73% in 2021. The rally came due to the coronavirus pandemic. In early 2022, the web infrastructure and website security company lost 22%. Analysts upwardly revised their forecasts after the company had reported higher sales in the third quarter of this year compared to the previous ones. Cloudflare’s annual revenue is expected to rise by 47% to $185.1 billion amid high demand for network security services, content delivery, and business solutions. In the third quarter of 2021, Cloudflare’s clientele using $100,000 worth of services per year expanded by 71%. Investors express keen interest in the firm. Therefore, its stock value may grow sharply amid mounting demand for Cloudflare’s services. Analysts feel optimistic about the company’s future and project a 66% spike in its value to $170.71 per share. Cloudflare has a market capitalization of $32.9 billion.

Palantir Technologies

Palantir Technologies is the third firm that might benefit from a collapse in the stock market. It provides data analysis software and services to government organizations and large corporations. Palantir has lost 22% since early 2022 due to the revaluation of tech stocks. Its market capitalization amounts to $28.4 billion with its revenue and sales being at a high level. According to experts’ estimates, Palantir may see its annual revenue swell 30% to a record of $417.6 billion amid accelerating demand for data analysis software from government agencies worldwide. This segment accounts for more than 50% of Palantir's sales, up by 34% y/y to $218 million in the third quarter of 2021. The company is planning to expand its presence in new markets, including healthcare, energy, and manufacturing. A steep fall in Palantir's stock along with a two-third decrease in its market capitalization made its shares quite attractive for investors, especially given accelerated revenue growth. Palantir’s stock is projected to grow by 66% in the wake of strong demand for data analysis software.