Opportunities for “going outside”
In contrast, the key players in online travel could see the short term dominated by Omicron. However, as travel recovered in 2021, we saw a glimpse of the long-term opportunity for one leader in the sector as it delivered profits well ahead of expectations. Although the COVID surge is a short-term challenge, we believe companies such as this may have substantial long-term growth potential, especially given the recent pullback. Notably, in 2021, leaders in “going outside” themes like travel and rideshare apps continued to diversify their offerings with growing business lines geared toward staying at home (e.g., online experiences and food delivery).
Online dating apps
Online dating apps may offer another opportunity in the “going outside” theme despite the short-term challenge from Omicron (which makes many people reluctant to meet prospective dates in person) and the current app store fee environment. We have a high degree of conviction that the fee landscape will break (reducing fees), and leading online dating app companies could be key beneficiaries. In addition, we believe these same leaders have the ability to unlock additional monetization opportunities throughout 2022 from recently launched features.