As usual, this weekend will bring the Super Bowl to televisions across America. However, huge crowds and standard advertisers like Coca-Cola (NYSE:KO) and PepsiCo (NASDAQ:PEP) will not be present. Instead, as the Kansas City Chiefs face off against the Tampa Bay Buccaneers, you will notice a handful of first-time Super Bowl commercials. Who are those companies? And what do those new advertisers mean for the stock market?
Everything this year feels different, and it makes sense that a few traditions will be missing from the Super Bowl LV. Iconic advertisers including Coca-Cola, Pepsi, Avocados From Mexico and Anheuser-Busch InBev (NYSE:BUD) pulled out. What does this mean?
Well, as Phoebe Bain writes for Marketing Brew, commercials this year reflect pandemic winners. Avocados From Mexico pulled out because less people will be sharing guacamole at Super Bowl parties. In its place, a handful of first-time Super Bowl commercials will debut, signaling what stocks are working in the market right now. CBS says its inventory is all sold out, and the big game is just a few days away. As you wait to see the final score, keep an eye on these first-time advertisers.
You just may find that those advertisers are exactly the stocks you want in your portfolio…
First-Time Super Bowl Commercial No. 1: Chipotle (CMG)
There is no denying that Chipotle (NYSE:CMG) has been a restaurant winner amid the pandemic. While other brands struggled to offer digital ordering and quick pickup, Chipotle already had a plan in place. From the very early days of Covid-19, the chain was racking up praise for its e-commerce operations.
That strength continued into the pandemic, and Chipotle continued to build on its success. The company is expanding its drive-thru locations and ghost kitchens, now that it knows just how successful it can be without dine-in customers. Beyond that, Chipotle is innovating its menu. While its queso and guacamole pack a flavor punch, it also wants to attract health-conscious eaters. With that in mind, its recently debuted cilantro-lime cauliflower rice has Wall Street excited.
But what does this mean for CMG stock? Analysts have a 12-month price target of $1,605. That implies just 8% upside, but if Chipotle can deliver on its digital-first plans, look for those targets to climb.
First-Time Commercial No. 2: Fiverr (FVRR)
Fiverr (NYSE:FVRR) is another perfect example of exactly what works during the pandemic. Unfortunately, the company is winning for some sad reasons.
It is no secret that the United States is on rocky ground when it comes to unemployment. Just today, we learned that another 779,000 individuals filed for initial jobless benefits. Although that figure came in at a two-month low, many Americans are still struggling to get back on their feet. That is where Fiverr and its gig-economy peers do their job.
Fiverr is an online marketplace for freelance talent. If you need logo design or ancestral research or even help setting up a website, you can find someone to do just that. For freelancers, it provides an opportunity to make some money when times are tough. And even for individuals with full-time employment, it can help pay the bills and protect against financial emergencies. During the pandemic, its business model has become increasingly attractive to investors.
One last thing to know: On Election Day, California voters made the growth runway even longer for FVRR stock. The state voted in favor of Proposition 22, allowing ride-hailing companies to classify their drivers as independent contractors. This bodes well for Fiverr and other gig-economy players.
First-Time Super Bowl Commercial No. 3: DraftKings (DKNG)
Perhaps nothing goes hand in hand with the Super Bowl better than DraftKings (NASDAQ:DKNG). DraftKings has also found great success during the pandemic, especially as many consumers turn to the world of online sports betting. With casinos mostly closed and live sporting events limiting their audience, DKNG stock and its peers became a new form of entertainment play.
Even beyond this pandemic success, the legal landscape is rapidly changing for DraftKings. Following a Supreme Court ruling in 2018, many states started to open their doors to DraftKings and other operators. Just earlier in January, New York Gov. Andrew Cuomo said that he too was changing his mind about sports betting operations. As he said he was in favor of legalizing it in New York, DKNG stock got a boost. Look for that to continue as other states follow suit, and as live sporting events continue to pick up speed in a return to normal.
One last thing? DraftKings came public via a special purpose acquisition company (SPAC). Now that it is public, the route it took may not interest investors that much. However, its early days as a SPAC stock certainly helped secure it some popularity. The SPAC path also makes it that much more of a pandemic-era winner.
First-Time Commercial No. 4: Vroom (VRM)
Vroom (NASDAQ:VRM) stirred up some nice buzz when it first came public, although admittedly, it has fallen out of the spotlight. A first-time Super Bowl commercial could be just the trick to remind customers of its pandemic-winning business model.
Not familiar with Vroom? Consider the company the e-commerce solution for buying your next car. Using its online marketplace, you can buy, sell or trade in vehicles. Not only is this more convenient, Vroom stands to gain from the Covid-19 lifestyle. Many customers still may not feel comfortable going to a dealership, interacting with strangers and test-driving germ-filled cars. If you know what you want, Vroom says it makes the process easy, and you can do it from home. Additionally, it offers financing and contactless delivery.
Granted, the story with Vroom has not been perfect. Its third-quarter earnings report sent shares falling, and the long-term growth trajectory is unclear. However, VRM stock represents a new era of pandemic businesses. Whatever you want, you should be able to buy it online.
First-Time Super Bowl Commercial No. 5: DoorDash (DASH)
Can you think of a better pandemic winner to launch a first-time Super Bowl commercial? DoorDash (NYSE:DASH) represents so much of what has worked in the stock market.
If you are anything like me, you are way too acquainted with your local DoorDash offerings. The company helps customers order food they want from restaurants near and far, and it delivers it right to your door. Touting its contact-free delivery and the convenience has certainly helped the company shine. Plus, for restaurants without their own digital operations, DoorDash can help keep the lights on.
Riding the wave of this pandemic success, DoorDash came public in a blockbuster initial public offering. In fact, its IPO was so powerful and sent DASH stock so high, that several other high-profile companies delayed their offerings. What comes next? The road forward is not entirely smooth for DoorDash. Many restaurants and lawmakers are worried that DoorDash cuts into small business profits. Plus, when it is safe to return to dine-in eating en masse, DoorDash could take a hit.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.