The Covid-19 virus has hugely impacted the stock market and especially tech companies. In 2020, tech companies were the biggest winners in the pandemic era. However, the boom times are coming to an end.
Large tech companies reported a breathtaking growth in 2020. People around the globe turned to technology and online games during the pandemic lockdowns, contributing to an eye-popping growth for tech companies.
Several majors companies have beaten the earnings expectations for the 2nd quarter. However, investors have become more worried about tech companies shares after they recorded a weaker than expected guidance for the current quarter. The most notable exception was Google’s parent company Alphabet.
Nonetheless, some of the major tech companies are still expecting a good growth n the third quarter although they admitted that it’s nothing to compare to the hyper growth in 2020. This is due to people turning away from tech and endorsing the real world again as the economy booms again following the vaccine roll-out.
Tech companies’ shares expected to plunge
For instance, Roku saw a huge drop in streaming and grappled with supply chain issues. Roku shares dropped by 6% as of Thursday morning after the company said in its earnings report Wednesday views on its platform plunged by 1 billion hours from the last quarter.