shares of technology companies recovered from the blow that was inflicted bv this spring coronavirus crisis.
the market Recovery was led by shares abbreviated as FAANG — Facebook, Amazon, Apple, Netflix, Google (although there is more correct to understand the parent holding Alphabet) and Microsoft. All of these companies that dominate the S&P 500 has already surpassed the index. Thanks to these characteristics relative to the broader market, a group of five companies FAANG plus Microsoft currently makes more than 20% of the total market capitalization of all United S&P 500. The Nasdaq Composite rose 0.3%, the first time briefly exceeding 10 000 points. S&P 500 down by about 0.8%.
the day of action Amazon.com Inc. rose by 3%, Apple Inc. by 3.2%. The price of Facebook Inc. increased by 3.1%, Netflix Inc.- 3.5%. Capitalization Of Google Inc.increased by 0.28%. Experts believe that the majority of the shares of techcompany locally overbought.
you Can give arguments in favor of increasing the stock price of Amazon and Netflix, and to some extent Microsoft, analysts said Synovus Trust. All three companies in one degree or another benefited from the isolation in connection with the pandemic.
Since the retail shops were closed, consumers turned to ecommerce, to buy food, toilet paper and other necessities. Because people stayed home and could not go to the cinema, to watch sports or other events live, many of them are addicted to streaming services including Netflix led the way. Meanwhile, the Microsoft messenger Team, the main competitor of Slack, faced with a sharp increase in popularity, as many office workers had to rely on such tools for communication with colleagues while working from home.
the Aggregate market value of the four technology companies in the presentemya is close to 5 trillion dollars, and Apple among them vying for first place with a rating of almost 1.5 trillion dollars. Facebook is the only group with a market price below $ 1 trillion.
while the likelihood of continued restrictions on life in the city and the possibility of a second wave of the virus could burden some businesses, technology companies are able to continue customer service from home. New methods of work and socialization has made a technological platform Central element of communication for many people. Recently, Amazon announced the investment of approximately 4 billion US dollars in efforts to fight the virus, which can further create new business opportunities.