Generation Z in particular is earning more and more from part-time jobs in the platform economy. Morgan Stanley analysts explain why this is not only interesting for employees, but also from an investor perspective.
• Gig economy as a trend on the labor market is also interesting for investors
• More earners thanks to the platform economy
• AI applications provide advantages over the competition
A recent study by Morgan Stanley Research shows that the trend of earning money with multiple jobs continues. However, this does not mean part-time jobs in the classic sense at minimum wage level, but rather earning money with platforms such as YouTube, TikTok, sharing platforms or delivery services, with which the younger generations in particular sometimes earn more money than in their traditional main jobs.
Platform economy: trend with effects on the labor market
Morgan Stanley analysts believe that this trend will also have numerous implications for employers and the labor market in general. For example, a large proportion of those surveyed who generate additional income on platforms are said to be considering quitting their regular job in order to turn their part-time job into a career. For employers, the numerous opportunities, especially for young employees, to earn money (on the side) with different platforms could result in difficulties in recruiting and even staff shortages. The various income options for employees also strengthen the negotiating position of employees vis-à-vis employers in an increasingly tight labor market.
As in many other areas, the issue was accelerated by the corona pandemic, when “boredom and hardship forced people to earn in new ways during the pandemic,” as Edward Stanley puts it in the study. That idea has now “shifted from necessity to opportunity,” Stanley said. Due to low risks and start-up costs, the platform economy is interesting for a wide range of professional groups.
Gig economy: These platforms exist
The topic of “gig economy” is also interesting as an investment scheme, because investments in the platforms and associated technologies clearly have potential, according to the study. “From a thematic investing perspective, consumer adoption curves are accelerating to or above the critical 20% threshold,” writes Edward Stanley. “History tells us that at this threshold investors benefit from growth and profitability rather than just one of the two.”
In the Morgan Stanley study, the authors draw an “X-to-Earn” vertical that identifies platforms that have the appropriate reliability, stability and infrastructure so that people can also earn money there.
On create-to-earn platforms, which include YouTube, TikTok or Facebook and Instagram, people can earn money with their own content.
The sell-to-earn platform category includes both large online marketplaces through which merchants sell their products and small business owners who use platforms to expand their business.
Deliver-to-earn platforms include delivery services that primarily deliver food or dishes from restaurants to your home. The best-known providers in Germany include Delivery Hero, Lieferando and Flink.
Through rent-to-earn platforms, private individuals or companies can rent out their houses and apartments as holiday accommodation or lend their vehicles, cars or campers, to others for a fee. The best-known example is the Airbnb rental platform, which is now represented worldwide. Gig-to-earn platforms include ride-sharing, task sharing, or professional outsourcing. Invest-to-earn platforms can include both crypto and traditional investments. Among the play-to-earn platforms, those that pay out digital coins as rewards are enjoying increasing popularity.
For the first time, Morgan Stanley included the topic of AI tools in the study. While numerous respondents stated that they earn money with AI applications, there is a lack of valid data for the actual outcome. Statements about increasing production through AI tools therefore appear to be viewed with caution. The Financial Times points out how there are many different claims about the use of AI-powered models that are difficult to verify: “The lack of hard data on the value of AI-powered hustling means it is sometimes difficult to understand the research from to distinguish between all the spammy X-accounts with a blue check mark,” says the magazine.
Adobe, Amazon and Alibaba: These stocks could benefit from the trend
In an article, Cash.ch has put together three stocks that Morgan Stanley experts recommend and that could benefit from the platform economy trend: Adobe, Amazon and Alibaba.
The analysts particularly emphasize the advantage of these companies through AI applications. While Adobe wants to earn around two billion US dollars in the next two years by integrating generative AI tools into Adobe Firefly, Amazon Web Service (AWS) with Bedrock offers, according to its homepage, the “simplest way to create generative AI applications with basic models scale”. The new Alibaba boss Eddie Wu is directing the group’s focus on artificial intelligence and wants to secure a competitive advantage over the competition with technological innovations for specific use cases.
On TipRanks, all three company shares mentioned receive a buy recommendation from Wall Street analysts: Amazon receives a strong buy recommendation from 41 analysts in the consensus rating with an average price target of $176.02. At the current price of $129.46, this represents an upside potential of 36 percent. The analysts are even more positive about Alibaba: at the current price of $86.53 and an average price target of $142.67, the experts see upside potential of 65 percent. There is a moderate buy recommendation for Adobe on TipRanks; the average price target is $600.77, which means an upside potential of 15.28 percent at the current price of $521.13.
Editorial team finanzen.net
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