I think that the coronavirus outbreak will mean that some ASX shares will never be the same again.
Some shares will be better off and some will be worse off.
Regulations may change. Processes and procedures may change. Consumer behaviour and purchasing habits may change.
The positives for ASX shares
There are going to be some areas of the share market where consumers were already changing their ways of doing things, but it’s just come at a much faster pace. The adoption curve has come quicker.
There’s going to be some shares that aren’t retail, but this shift still brings forward the adoption curve. I’m thinking about shares like Pushpay Holdings Ltd (ASX: PPH) with this.
Some shares still provide physical products, but consumers are choosing higher-quality items so that they know their households are getting the best they can. Quality infant formula is a great example with shares like Bubs Australia Ltd (ASX: BUB) and A2 Milk Company Ltd (ASX: A2M).
The negative changes for some businesses
But there are also plenty of ASX shares that may never have it as good as they did before the coronavirus through lower demand and/or higher costs.
Travel shares like Qantas Airways Limited (ASX: QAN) and Sydney Airport Holdings Pty Ltd (ASX: SYD) may never be the same again. Even if demand completely returns, there will probably be higher costs like there was after 9/11.
Physical store retailers may see lower demand due to customers avoiding shops and also the economic damage. What will happen to shares like Scentre Group (ASX: SCG), Vicinity Centres (ASX: VCX) and Shopping Cntrs Austrls Prprty Gp Re Ltd (ASX: SCP)?
Some of these names may be short-term opportunities, particularly the travel ones if people can travel sooner than expected. But some shares in some industries may have seen their investment thesis fundamentally changed for the negative.
I’m very attracted to shares that are seeing their growth come earlier than expected. Pushpay could be a top ASX share performer over the next few years, I’d be very happy to buy a parcel of shares today.
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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended BUBS AUST FPO and Kogan.com ltd. The Motley Fool Australia owns shares of A2 Milk and Shopping Centres Australasia Property Group. The Motley Fool Australia has recommended PUSHPAY FPO NZX and Scentre Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.