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Global pandemic of 2019 has left almost all industries shaken to its core in many different ways, except one! Tech industry. In fact, things got drastically better for these tech giants as compared to other sectors. In early 2019, when pandemic broke out, life was disrupted at almost all big businesses, education institutes etc. and the only viable option was to move things online. This created an upsurge in tech market, which includes both; companies that produce hardware and software.
Amazon thrived as the consumer shifted to online shopping. Other rival retail brands like Walmart and Target also upped their e-commerce game.
Software companies which are now providing SaaS products, which is a way to keep generating revenue by selling subscription of the product to the consumer. Popular names include Zoom, Netflix which had their own fair share of profits. Zoom, which is a teleconferencing app saw an unprecedented surge in downloads due to pandemic. At the end of the fiscal year, its revenue surpassed $1 billion for the first time which is evident from their performance at stock market.
(Credits: nasdaq.com)
Even the global pandemic could not takeaway charm of FAANG: Facebook, Amazon, Apple, Netflix, and Google as always stayed at the top of market. Although they also had setbacks due to lack of advertisements, as Facebook and Alphabet depend on it, but they recovered pretty well.
Why now?
So, if you’re thinking of investing, diversify your portfolio with tech stocks. According to Forbes, in spite of the fact that S&P 500 Information technology index is up roughly 21% this year, there is still a high chance of rise through the rest of the year. Famous analyst, Dan Ives has suggested an expected rise of 7%-10% in tech stocks by the year’s end.
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