Looking for ASX share ideas? I think these two could benefit from a reopening economy.
Kip McGrath
The first ASX share that could stand to benefit from a reopening economy is Kip McGrath Education Centres (ASX: KME).
Kip McGrath has been tutoring primary and secondary school children throughout the world to improve or extend their learning, particularly in English and Maths. It operates primarily across Australia, New Zealand, and the UK.
Most of its revenue comes from its network of franchisees, but it also has 17 corporate centers across its key markets.
Lockdowns across the world have caused a reduction in revenue from traditional face-to-face lessons. KME successfully pivoted to a blended model that involves online tutoring, which it thinks will be a permanent change to its offering.
As the world pushes through a vaccine-led recovery, it’s reasonable to assume that face-to-face learning will normalise to some extent.
Life360
Another potential reopening play could be from Life360 Inc (ASX: 360).
Life360 has designed an app that’s used to connect families and friends by tracking a user’s location in real-time.
From the onset of COVID-19, Life360 struggled to onboard new users. This was reasonable, as there’d be little point in tracking the whereabouts of family members when many people were stuck at home.
In the US (its largest market) the vaccine rollout appears to be going well and the start of a new school year means that parents will have a greater need to monitor their children. This could cause an uptick in current user engagement and new users joining the platform.
To read more about Life360, click here to read my colleague, Lachlan Burr-Jensen’s article: 3 reasons why the Life360 (ASX: 360) share price could be a great buy.
