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Tech companies have been solid through coronavirus, but will it last?
- Friday | 5th June, 2020
NEW YORK (Reuters) – A bet on tech companies has been a solid one in the aftermath of the coronavirus-induced market crash, but some investors are questioning whether those stocks can maintain their momentum if jobs do not recover soon. The Nasdaq Composite Index, nearly half of which is comprised of technology and communications firms, is still yet to crest such a high. “Owning tech in this environment is considered not speculative but safer than consumer brands that would have traditionally been safe,” said Cox, adding that many large technology companies now pay attractive dividends. A number of well-known companies, including Amazon, Facebook Inc and Zoom Video Communications, have already soared past the highs they notched before the coronavirus crisis. With the valuation of technology stocks stretched overall, investors should gravitate toward companies that rely less on the direction of the economy, said Mike Lippert, a portfolio manager of the Baron Opportunity Fund.
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