'This coronavirus is global phenomenon,' here's how business ops will change: Expert

Bill Studebaker, President and CIO at ROBO Global joins Yahoo Finance's On The Move panel to break down how business models are changing as coronavirus fears and company closures are causing panic for the markets.

Video Transcript

BILL STUDEBAKER: This coronavirus is a global phenomenon. And countries and companies all over the world are at different stages of kind of how they're reacting to this crisis. And obviously, it's coming to California fast and furious.

And if anything, I think we're going through a couple of stages where-- I see the crisis kind of playing out in couple of ways, one is sort of insuring stability and business continuity. And then after that, the next wave is institutionalizing new ways of working. So business models are changing virtually overnight as a result of this.

I'm not encouraged though that-- that the steps that China has taken is now beginning to bring that country back to more normal environments. And you know, they're talking about school starting next week. Malls are beginning to fill up. People are beginning to go back to work.

So I think it was the CEO of a start we talked about this basically being World War III, but for 90 days. I think we need to be encouraged that, you know, we're tackling this problem pretty aggressively. There will be some economic consequences, but we will get out of this.

ADAM SHAPIRO: Hey, Bill, it's Adam Shapiro. And you talk a lot about what we're seeing these giant swings in the market. And when we do get out of this, how much of trading will rely on computers and algorithms? Is it going to be even more, because it would seem that the computers and the algorithms right now might be missing a great deal.

BILL STUDEBAKER: Well, I think they do. I mean, I think what I've definitely learned from from observing the market here is that computers and machines know everything about price, but they know nothing about value. They know nothing about understanding where the world is going in terms of embracing your new technology and how things play out.

So you know, that's going to come down to people. And so I think that's just an important observation. In other words, I think we just need to unfortunately just, you know, turn down the noise on the volatility button every day. Every time there's a headline news, everyone reacts to it.

And I think everyone should be sensitive to the fact that the numbers are going to get worse before they get better. So I actually just purposely turn off the TV and don't pay a lot of attention to the swings that have happen, you know, every minute, because they're going to continue to be this way. It probably will be for the next several weeks.

JULIE HYMAN: And, Bill, as you try to sort of I guess divorce yourself a little bit from the moment by moment news barrage, you still have to do your job, just like we're here doing our jobs. And so I know that you are sort of looking at the market for what to do right now. And what potential opportunities, what companies are going to be able to help out during this time? Are you actively going in and buying shares at this point, or are you sort of researching and waiting?

BILL STUDEBAKER: We're doing both. I mean, as I said, I think this crisis is kind of playing across two ways, one is that, you know, ensuring stability, business continuity. So what is that? I mean, that's e-commerce and warehouse automation. And these are technologies that are now allowing us to get, you know, basic necessities, you know while, socially distancing ourselves.

So there is a slew of technologies that are enabling that, that we are invested in companies, like Zebra that does trace, track, and control. If you order from Amazon, chances are their technologies tracking all your packages. There's companies like Daifuku in Japan that has automated guided vehicles and picking and sorting systems and companies like Ocado that does online grocery retailing in the UK.

Given what's just happened now, I think we're going to see an explosion in technology adoption even more so into-- into e-commerce. And then when you think about how businesses are changing, there has to be new ways of working. And new business models are being created overnight.

And there is not one that's more paramount than when you think about telehealth. OK, telehealth is exploding. There's a company in our index Teladoc that is making 52-week highs every day, as their business model is in critical need, right. And you're basically enabling 24-care, virtual care visits.

I would guess that in another three to five years, we're going to be talking about an industry that's going to do upwards of a billion virtual care visits per year. OK, there's a company in one of our indexes called Ping An Health and Technology in China. They do telemedicine. And they do 650,000 virtual care visits per day, OK, not per quarter, not per year, but per day.

So they're going to do close to $250 million per year. So this is an industry that's changing overnight. So I'm encouraged not to take advantage of the situation, but this is going to force us to continue to modernize. We're going to become more mobile. We're going to become more digital. And it's not going to stop.

JULIE HYMAN: Sounds logical to me, Bill. Bill, thank you so much for your thoughts on all of this and some of the industries that we should be watching. Bill Studebaker is president and CIO at ROBO Global.

And just wanted to mention as well to Bill's point, we're actually going to be speaking to a telemedicine doctor and CEO next. He is the head of ProHealth Care on Long Island. And we're going to be joined by him right after this. We'll be right back.