COVID 19 and Its Impact on the Technology Sector
In the past few years, technology companies have been driving the boom in the financial markets. The FAANG companies (Facebook, Amazon, Apple, Netflix, and Google) have seen their valuations increase by leaps and bounds. However, COVID-19 is causing a worldwide stock market collapse. It would be fair to say that the pandemic is not affecting all the sectors in the world equally. Some sectors are seeing a rapid decline in their valuations, whereas some others are even benefitting from this crisis. In this article, we will explain the impact that COVID 19 is having on the technology sector.
Impact on the Technology Sector
The technology sector can be divided into three sectors viz. hardware, software, and IT services. The impact of COVID-19 on each of these three sectors has been described below:
The bottom line is that technology is one of the few sectors which is poised to gain from the COVID-19 crisis. Some companies with the sector will gain, whereas others will lose. However, the sector is a whole is going to face a positive impact because of this crisis.
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