Stocks Least Affected By The Brexit Vote

Against the backdrop of Britain voting to leave the European Union, Global Equities Research’ Trip Chowdhry mentioned that political chaos was inevitable, but there were four companies that would be least affected by this.

Political Chaos In The Offing

UK Prime Minister David Cameron put the Brexit [Britain’s Exit] issue to a referendum, with the aim of silencing EU critics in his Conservative Party, but this seems to have backfired, analyst Trip Chowdhry mentioned. He added that Cameron’s government is likely to lose a vote of confidence in the House of Commons.

Chowdhry noted the economic impact of Britain’s exit from the EU:

  • End of unrestricted free flow of goods, services, materials and labor from the rest of Europe to Britain
  • Consequent rise in labor costs in Britain
  • Oversupply of certain skills and shortage of other skills
  • Rise in cost of goods and services
  • Britain will become noncompetitive in world markets
  • Britain’s economy will shrink
  • Decline in the overall value of businesses based in Britain due to higher labor and material costs

Companies Least Affected

The analyst mentioned stocks that would be least affected and the reasons as:

Red Hat Inc RHT

  • Long-term contracts in place
  • Fully matured subscription model
  • No production in Britain
  • Market share wins against legacy Solaris Operating System, and Microsoft Windows OS, inc. CRM

  • Long-term contracts in place
  • Fully matured subscription model
  • No production in Britain

Apple Inc. AAPL

  • Sticky subscription
  • Low PE, Inc. AMZN
Amazon's AWS would be least affected because of:

  • Sticky subscription
  • Strong Web Services offering - both breadth and depth
  • As IT Budgets shrink, customers will look for cheaper and more cost effective service

Posted In: Global Equities ResearchTrip ChowdhryAnalyst Color

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.