FOLLOW US

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 2^nd 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.

Meanwhile, Apple was hit by the chip shortages, and that could impact its iPhone sales. Amazon also reported a revenue miss although the companies reported a $100 billion quarter for the 3^rd time in a row. The E-commerce tech giant’s CFO stated that the 3^rd quarter seems to be harder.

However, Facebook is expecting 31% growth for the quarter. The social media giant’s expectations comes in conjunction with critics from lawmakers because of its data privacy.

“The NYU team provided valuable data about advertising on Facebook — data that Facebook has consistently refused to provide,” said Jonathan Mayer, an assistant professor at Princeton

“It’s just gotten a lot harder for me to make data available to the public and to lawmakers and regulators, and that was something I regularly did,” said Edelson, a PhD candidate at NYU, calling it “a blow to oversight.”