What’s happening: Tech firms, especially the FAANG companies - Facebook, Amazon.com, Apple, Netflix, and Google, have played a key role in the new normal world created by covid-19. These stocks not only survived but some reached new highs during the pandemic.
What happened: While most industries have been impacted severely by the coronavirus lockdowns, tech companies are among the few that have witnessed a strong run.
Tech companies have emerged as the lifeline for individuals and businesses, providing connectivity and aiding people to efficiently work or learn from home, stay connected with colleagues, friends and family as well as find some sort of entertainment amid the lockdown.
Investors who had put their money behind tech companies in March, when the virus started spreading in the US, are reaping strong returns now. Last week’s trading suggested that the FAANG stocks are now racing past the coronavirus impact.
Performance of the FAANG stocks: Facebook, Amazon.com, Apple, Netflix, and Google
Facebook: The stock climbed more than 11% last week after the social media company launched its ecommerce venture, Facebook Shops. Although the Menlo Park, California-based company suffered due to a decline in advertising revenue during the pandemic, it is benefiting from higher user engagement.
Facebook’s stock closed higher by 1.5% on Friday to reach a record high of $234.91. Although the stock slipped 1.2% on Tuesday, it has gained close to 18% over the past three months.
Amazon.com: The ecommerce giant continued to operate during lockdowns across the globe, as its business became an essential service for people stranded at home. The Seattle, Washington-based company added 175,000 employees to meet the rising demand during the pandemic and is now on course to bringing back its one-day delivery for all items, including non-essential ones, with restrictions being lifted. To boost deliveries, the company is considering investing in Amazon Air, buying aircrafts at highly depressed prices due to distress sales by battered airline companies.
The stock climbed to a record high of $2,497.94 on Wednesday and gained 1.1% over the week. Although shares of Amazon slipped slightly by 0.6% on Tuesday, they have gained more than 22% during the previous three months.
Apple: The Cupertino-based company started reopening its stores in the US, with an easing of lockdown restrictions. Apple also launched an app and a website in collaboration with the government to allow users to conduct a self-screening test for the coronavirus.
Apple’s stock gained 3.6% last week, although remaining 2.5% lower than the record high of $327.20, which it recorded in February. The stock has climbed more than 8% over the past three months.
Netflix: The Los Gatos, California-based company witnessed an increase in subscriptions during coronavirus-led shutdowns globally, as the company’s streaming service emerged as one of the major sources of entertainment for millions.
Netflix’s stock lost 5.5% last week but reached an all-time high of $454.19 during the week. Although the company’s stock slipped 3.4% on Tuesday, it has gained more than 9% over the past three months.
Alphabet: Google parent Alphabet collaborated with Apple to develop a contact-tracing technology to help reduce the spreading of covid-19.
The stock climbed 2.9% last week but remained 7.3% below the all-time high of $1,524.87 achieved in February. Alphabet’s shares have gained 2.2% over the past three months.