Technology

Coronavirus Pandemic and its Impact on Tech Companies

The coronavirus pandemic remains one of the major challenges for more than a year. The pandemic affected numerous industries and the tech industry is not an exception. The Covid-19 boom times are coming to an end for tech companies around the world. In general, tech companies surpassed earnings expectations in the second quarter of the year, nevertheless, investors still punished shares following weaker than expected guidance for the current quarter, Alphabet was the most notable exception, nonetheless.

Tech companies still expect to reach great results in the third quarter, but warned they have lapped the hyper growth they saw in 2020. More and more people are turning away from tech as economies open up and more folks get vaccinated.

 

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Tech companies and risk factors

So, let’s have a look at several tech companies to learn more about the situation. For instance, Roku saw a huge decline in streaming and grappled with supply chain issues. On Wednesday, the company released its earnings report. According to the company, total streaming on its platform dropped by 1 billion hours from the previous quarter.

Another company Etsy also surpassed expectations in its second-quarter earnings report on Wednesday. Nevertheless, investors punished the stock after the company’s guidance for the current quarter suggested the pandemic-driven e-commerce boom is stalling.

Tech giants are struggling to deal with various challenges. Even Apple, which has a great reputation for managing its supply chain, is not immune to chip shortages. Tech companies are trying to do something, but it could take several months to improve the situation.  The tech giant warned that supply constraints could impact iPhone as well as iPad sales. The company also said it does not expect to post the same kind of growth it did in 2020.

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