Research"Work from home" keeps working

"Work from home" keeps working

Nov 13, 2020

Earlier this week, we saw a sharp rotation out of quality growth stocks (e.g., software, internet) and into beaten-down "value" stocks (e.g., airlines, cruises).

The cyclical-heavy Dow Jones index outperformed the tech-heavy Nasdaq by ~7% on Monday and Tuesday, the largest two-day performance spread since March 2001. The driver? Positive vaccine data from Pfizer, which brought the prospects of a broader economic recovery ever closer to reality.

Many investors repositioned portfolios to get exposure to stocks best poised to rebound once the world reopens. They sold the massive "work from home" (WFH) winners like Zoom and bought "away from home" laggards like Boeing.

But contrary to what this growth-to-value rotation may suggest, we think many "work from home" stocks will keep working for years to come. One of our Opportunities holdings, Upwork (UPWK), is a case in point.

Upwork operates an online employment marketplace. Looking for a web developer to build you a website for your coffee shop? Head to Upwork.com.

On one hand, the stock is clearly a WFH beneficiary -- after the initial COVID shock drove massive layoffs, workers flocked to the site to get hired. On the other hand, we don't think demand for freelancers will decline even when the world reopens. Per one report, 70%+ of hiring managers said they will maintain or increase their work with freelancers due to the pandemic. 

Incredibly, UPWK is already a 2-bagger for Titan clients (up +105% since mid-August) who've invested in Opportunities. WFH keeps working.

Rather than betting on a rebound in lower-quality cyclical stocks (like cruise lines), we prefer to bet on longevity of high-quality secular growth trends. 

What other WFH winners do you think are here to stay?

Cash Management

Smart Cash

Smart Cash FAQs

Cash Options

Get Smart Cash

InstagramTwitterYoutubeLinkedIn

© Copyright 2024 Titan Global Capital Management USA LLC. All Rights Reserved.

Titan Global Capital Management USA LLC ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept and agree to Titan’s Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities or investment products. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are hypothetical in nature and may not reflect actual future performance. Account holdings and other information provided are for illustrative purposes only and are not to be considered investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.

Please refer to Titan's Program Brochure for important additional information. Certain investments are not suitable for all investors. Before investing, you should consider your investment objectives and any fees charged by Titan. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested, including principal. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members of FINRA/SIPC. For more information, visit our disclosures page. You may check the background of these firms by visiting FINRA's BrokerCheck.

Various Registered Investment Company products (“Third Party Funds”) offered by third party fund families and investment companies are made available on the platform. Some of these Third Party Funds are offered through Titan Global Technologies LLC. Other Third Party Funds are offered to advisory clients by Titan. Before investing in such Third Party Funds you should consult the specific supplemental information available for each product. Please refer to Titan's Program Brochure for important additional information. Certain Third Party Funds that are available on Titan’s platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund.

The cash sweep program is made available in coordination with Apex Clearing Corporation through Titan Global Technologies LLC. Please visit www.titan.com/legal for applicable terms and conditions and important disclosures.

Cryptocurrency advisory services are provided by Titan.

Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.

Contact Titan at support@titan.com. 508 LaGuardia Place NY, NY 10012.