When the year started, tech investors couldn't have imagined that markets would go the way they have through the first three months, especially since the year started off strongly for two of tech's biggest names.
Amazon.com, Inc. (NASDAQ: AMZN) started the year $1,875 before quickly rising to a new all-time high of $2,185 on Feb. 11. Shares of Microsoft Corporation (NASDAQ: MSFT) started the year at $158 before rising to $190 in February.
Then the COVID-19 roller coaster began.
All three stocks were at one point down 25% of more in March, and all experienced their worst quarter in years. But the past few weeks have been a different story.
Shares of Microsoft are up 25% over the past two weeks while Amazon shares are up 24%, signaling that investors have been quick to bet on a potential rebound for the two largest cloud providers. And they have reason to be positive.
Microsoft Cloud Solutions Vs Other Solutions
Microsoft's CEO, Satya Nadella was appointed to the job in 2014. Considering his previous position was being the executive VP of Microsoft's cloud and enterprise group, his appointment was a clear commitment to Microsoft's strategy of launching further into the cloud. Besides the cloud, Microsoft's strength lies within cloud applications, though this "cloud-based" strategy has not come at a cost. The company spent $1 billion in capital spending last quarter as they've invested heavily in its cloud infrastructure.
By providing a platform for other companies' online business, Microsoft managed to step in Amazon's backyard.
Communication And Collaboration Platforms
Microsoft's collaboration platform, Teams, is being heavily used during the COVID-19-induced "home office environment." The increase in use was so high, that Microsoft had to constantly work on expanding the capacity of the platform. However, Zoom Video Communications, Inc. (NASDAQ: ZM) has experienced even more growth over the past few weeks by offering free meetings of up to 40 minutes, making itself a viable competitor to Microsoft's offering.
Tech Stocks Seem To Be Recovering
No matter the current stock price, most tech stocks have found a way to recover from their recent lows. All companies that are supporting millions of people so that they can work from their homes are helping both the economy to stay alive but also themselves by keeping their core business strong. Cloud solutions and e-commerce are the essential players in this scenario.
This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure Ivana Popovic does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: email@example.com Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: firstname.lastname@example.org Questions about this release can be sent to email@example.com
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