Stake - 5 Stocks Set To Disrupt The Markets In 2021
5 companies set to disrupt the markets in 2021

From Airbnb to Spotify here’s five disruptors who are shaking up the markets in 2021. How will their stock price react?

1. Spotify

Spotify is way more than just the music streaming it debuted as in 2018. While it has well and truly turned the music industry on its head, for better or worse, their sights are set on the full digital media experience.

In May this year, Spotify announced a star studded stable of native podcast hosts; namely, Joe Rogan, Michelle Obama, and Kim Kardashian. Rogan’s incentive laden deal could see him earn as much as US$100m and the move seems to be paying off for $SPOT. The Joe Rogan Experience is the platform’s leading podcast of 2020 and the stock has added US$30b in market cap since the announcement.

Many liken Spotify’s moves to Netflix’s decision to produce their own content in house- of course an episode of JRE is a lot cheaper to produce than the Queen’s Gambit yet both charge a relatively similar monthly subscription.

Apart from music and podcasts, rumours are circulating that streaming may soon make its way onto the platform. Investors into Spotify have bright hopes for what the platform will be tomorrow.

2. Airbnb

With 7 million listings in 100,000 cities worldwide, the scalability of Airbnb is obvious. And this has quickly been recognised by the market. It’s December IPO saw it skyrocket to double its pre listing valuation, US$40b above estimates.

The statistics indicate that 19% of all nightly lodging demand is fulfilled by AirBnb, a number constantly growing even as the whole industry recovers from global travel lockdowns. That’s a pretty impressive chunk of market share in just 12 years of operation and can be expected to continue as the world continues it’s to a gig economy, again for better or worse.

3. Lemonade Insurance

Lemonade brings tech to insurance. The latest in the ever-growing trend of disruption, insurance quotes are delivered in minutes through AI-driven decision making. An online experience reduces costs which ultimately delivers a cheaper product to the consumer.

Offering renters, homeowners and pet insurance, they have quickly surpassed industry stalwarts like All State and Geico in many states including New York and Texas.

The team behind $LMND have also made a concerted effort to give back. After their fees, the company pools unclaimed money and pays it out to various charities of the customers’ choice.

This figure can be up to 40% of revenue. Year on year the Giveback Movement has increased their donations by 3-5x.

4. Nio

Tesla has been Stake’s most traded stock for over a year now. Week in week out it’s at #1. Except for when $NIO took over. Our 2nd most traded EV stock may have just as much potential. Nio is the Tesla of China. In a market where the government is placing an increasing priority on electric vehicles, for obvious pollution reduction reasons, the sky’s the limit for Nio.

They are already a US$30b company on the back of a record Q3, easily surpassing 10,000 vehicle deliveries. Be aware, future earnings are deeply baked into this share price here. Ford also boasts a US$30b market cap but delivers around 5 million vehicles a year.

5. 2U

One of many questions 2020 raised was the true utility of an in person education. The growth of online learning has been long standing and only enhanced by lockdown measures. 2U is leading the revolution. The platform partners with Universities including ASU and Michigan State to digitise their curriculum, offering the platform and knowledge to offer online degrees and courses.

While the model is not unique, 2U offers full degrees, not just courses. In an industry they estimate to be worth US$7b, and projected to grow by US$15b by 2025, $TWOU has a tremendous head start, educating 275,000 students so far.