Displaying items by tag: tech

(New York)

It might be obvious if you are paying close attention to the stock market, but today we are covering a list of the top performing stock/companies during COVID. Most of the names are what you would expect, but there are a few surprises. No one would be surprised to see Amazon and Microsoft atop the list, with Tesla, Facebook, and Alphabet all in the top ten, but how about PayPal and Shopify (numbers 9 and 15 respectively). Zoom is also in the top 15, but Audi and Home Depot are also in the top 25. Salesforce is number 33.

FINSUM: Certain companies have boomed under COVID for a variety of reasons, and looking at a consolidated list is a great way to get a perspective on what is performing well.

(Seattle)

You may or may not have heard of Shopify, but if you haven’t, it is probably time to take a hard look. Shopify is a Canadian e-commerce company—a fact which has meant it has been somewhat overlooked by those outside the tech space—that makes offering ecommerce and in-store payment collection easier for small businesses. The idea is to offer the scale and robustness that large companies have to small businesses selling online. It makes its money from subscription fees and add-on services. After initially falling during the lockdown, it has nearly doubled in value and is now worth around $100 bn.

FINSUM: This has been a big run higher, but Shopify sits at the intersection of ecommerce and fintech and may be the long-term competitor to Amazon.

(San Francisco)

The market has seen some very healthy (or perhaps not) gains in the last few weeks, but many are still worried about a plunge to come as the full impact of the COVID lockdown reverberates through the economy. Tech stocks have been big beneficiaries of the rally, with the big companies adding $250 bn to their market caps recently. Those gains look more sustainable than elsewhere too. Fund managers have been seeking refuge in the shares, and their business models look more defensible than most.

FINSUM: We are very bullish on big tech stocks. This whole lockdown is going to shift habits more towards ecommerce (and not just online retail, but food ordering etc), which means Google and Facebook are going to be able to collect their digital advertising tax on a bigger pot than ever.

(San Francisco)

Apple just debuted a new phone model and they appear to have made a very wise decision. The company unveiled its new version of the iPhone SE, its lowest end model of the iPhone, for just $399, the same price as the original SE model in 2016. However, this phone is significantly beefed up, and Apple says its Bionic Chip is the “fastest chip in a smartphone”. The pricing, of course, comes at a time of major economic hardship for most Americans.

FINSUM: This is a wise play both from a revenue generation standpoint and a branding standpoint. It would be hard for most of the US to justify a $1,000+ upgrade right now.

(San Francisco)

Investors have made cash the only thing that matters in markets. The Dollar is surging and investors are fleeing assets in favor of cash. Cash is a scarce and valuable asset in this downturn, and which companies have a ton of it—tech companies. While the Silicon Valley giants will take a hit from lower consumer spending, the reality is that the shutdown of normal life is pushing things ever more online—their domain. As this crisis eventually abates, giants like Apple, Microsoft, Google, and Amazon, have huge cash reserves (currently $350 bn) that will help them attract shareholder capital, and also grab market share as competition gets weeded out.

FINSUM: Tech is probably going to be in a stronger position in a year than it was six weeks ago. Their fortress balance sheets will be key.