While economy takes a nose-dive, tech companies see a silver lining
Almost every industry has seen redsince the outbreak of COVID-19, but technology companies shine as an exception. TheS&P 500 Information Technology Sector Index has grown by almost 66%, from 1329 in August 2019to 1995 points in August 2020.
This implies that as employees across sectors were constrained to workfrom home, technology consumption moved north. Better devices and Internet connectivity and excessive dependence on video calling software like Zoom, Microsoft Teams, Cisco Webexetc. emerged as a strong need.
While technology was already breaking class barriers to becoming pervasive, COVID-19 breakdown hastened theadoption. The rest is numbers.
Amazon’s market cap has almost tripled from $884 billion in Aug 2019 to $1525 billion in August 2020, while Intel recorded almost 20% increase, followed by massive demand for its technologies across cloud, home and mobile network environment. Microsoft’s quarterly revenue increased by 13% with growth across almost all their offerings.
We are not sure how long will this trend continue, but the increased adoption of technology and the positive market for technology productsis definitely good news for now.