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As COVID-19 continues to spread, technology stock prices have fallen in tandem with the general market. However, such tech stocks as MSFT and AMZN could also become the market leaders.
Technology stock prices have fallen drastically in financial markets. Sources say that technology stocks have declined in response to the general market malaise brought on by COVID-19. This bearish trend may have dampened several business areas and bolstered others.
Yesterday, Microsoft Corporation (NASDAQ: MSFT) stock prices stood at $157.71 (-1.57%). In the pre-market, it is still falling. It is trading at $153.50 (-2.67%). Amazon.com Inc (NASDAQ: AMZN) stock prices were at $1,949.72 (-0.72%) yesterday. In the pre-market, AMZN is also down. Its price is $1,925.00 (-1.27%).
However, in general, in Q1 2020, the shares of these two giants performed better than others. MSFT stock ended the quarter with a 0.00006% rise. Amazon posted a 5.43% stock value increase.
Technology Stock Prices Went South in Q1
Other big tech stocks didn’t manage to win. Apple Inc (NASDAQ: AAPL) was down by 13.4% while Alphabet Inc (NASDAQ: GOOGL) fell by 13.25%. This indicates that COVID-19 pandemic is causing many problems. Yet, the tech sector will emerge as a clear leader and market maker as market volatility exists due to uncertain demand in some areas. Others, however, seem poised for exponential growth.
This uncertainty has led to falling prices as well. A rise is noticed however in certain industries. Microsoft saw a rise in demand for its cloud services. This could be connected to the sit-at-home restrictions by world governments. More companies now collaborate remotely rather than physically due to COVID-19.
Amazon also saw a rise in the demand for essentials. Specifically, items such as facemasks and hand sanitizers were the hottest items. This, of course, is due to the rules of engagement and interaction as set out by health experts.
Technology companies have warned about the implications of the coronavirus pandemic. Their profits have been severely affected due to the situation on the ground. market segments for certain business units have fallen in terms of profits while others have soared.
Cloud Computing Could be a Golden Opportunity
The cloud computing sector seems to be profitable due to a rise in software services. This increase has led to a new demand surge for web-based computing services. Amazon web services and remote collaboration software such as lack is one such example.
As the numbers of the sick ad the dead continue to be on the rise, many once abnormal situations are now the new normal. Consumer behavior has also been changed as a result of the worsening coronavirus situation.
The whole world is virtually on lockdown. It seems that the rise of the technology industry is inevitable. For now, the financial markets are in turmoil. There seems to be a no end to this as there is no sign that there is light at the end of the tunnel about coronavirus.
We can all be sure of one thing though: the technology stocks are a gamechanger in these dark times.