Supply Chain Chaos: 2 Stocks Set to Crush the Market in 2022 (and Beyond)

Last year, pandemic-driven business closures weakened global supply chains, reducing the availability of raw materials and other goods. As lockdowns were lifted, the spike in consumer demand…

put more pressure on an already strained system. And in August, a record 4.3 million Americans quit their jobs, adding labor shortages to the list of headwinds.

This chaos is already impacting consumers, who are finding it more difficult to buy everything from automobiles and electronics to household products and medicine. Unfortunately, experts believe it will be at least six months (and maybe more than a year) before supply chains normalize, meaning industries like construction, manufacturing, and retail are likely to face significant headwinds for the foreseeable future.

However, this difficult situation may actually be a tailwind for companies like Airbnb (NASDAQ:ABNB) and Coupa Software (NASDAQ:COUP). Here’s why both of these stocks could crush the market in 2022 (and beyond).

Airbnb: A disruptive business model

Airbnb is disrupting the travel and tourism industry. Its platform crowdsources lodgings from over 4 million hosts worldwide, helping guests find a place to stay in over 100,000 cities. More importantly, Airbnb offers a far greater selection, both in terms of location and real estate, than traditional hotel chains.

Guests can book a private cottage by the coast, a rustic farmhouse in a small town, or a trendy apartment in the heart of a big city. Airbnb also lists a variety of unique lodgings, such as a treehouse in the rainforest or a castle on the English countryside, providing a once-in-a-lifetime experience for travelers.

That advantage has helped Airbnb recover more quickly from the pandemic. Through the first half of the year, the company’s revenue skyrocketed 89%. Meanwhile, Hyatt and Hilton — the two most valuable hotel brands in the world, according to Brand Finance — both posted revenue declines of 11% over the same period. Airbnb also saw its gross booking value rise 320% to $13.4 billion, implying strong revenue growth in the coming quarters.

Looking ahead, supply chain chaos and labor shortages could further reinforce Airbnb’s advantage. Hilton CEO Chris Nassetta recently said difficulty staffing hotels is “probably the single biggest issue” that the company faces. And Hilton isn’t alone. Marriott currently has over 10,000 empty positions across 600 hotels, which may translate into a poor experience for guests on its properties. Additionally, any new construction or renovation projects will likely take longer to complete in the current environment, limiting any near-term expansion plans.

Meanwhile, Airbnb can…

Continue reading at THE MOTLEY FOOL


Leave a Reply

Your email address will not be published.