The Tech sector rallied during the coronavirus pandemic. Social distancing measures and lockdowns meant that people had to work and study from home. Even though some restrictions lessened considerably, most of the people haven’t returned to their offices. But they need different programs to work from homes, such as Zoom for video calls and online meetings, or other office programs. So, tech stocks that work on such products skyrocketed over the last few months.
Information technology has been the biggest winner among the 11 sectors of the S&P 500. Meanwhile, the Technology Select Sector SPDR’s (XLK) rallied by 25.9% in the past six months.
Zoom Video Communications has gained massive amounts due to work-from-home and online learning practices. Its paid subscriber growth for the video conferencing service has also improved significantly during the past months. The firm uses AI to schedule video meetings, and it enables a host of other things as well, such as organizing attendee details or transcribing details.
The Zoom platform has provided an incredibly valuable service in the pandemic-induced stay-at-home scenario – stated CEO Eric Yuan. As a result, the company’s expected earnings growth rate surpasses 100% for 2020.
While the Zoom manages meetings, Salesforce.com provides on-demand Customer Relationship Management software. According to analysts, this stock’s earnings growth rate for the next year is 25.1%. Salesforce.com enables organizations to better manage critical operations, such as document management, customer service, and support, marketing automation, sales force automation, analytics, and custom application development.
What about Apple, Inc.?
Apple is one of the most famous brands worldwide. It designs, manufacture, and markets smartphones, tablets, personal computers, accessories, and wearables. Its signature products – iPhone, Mac, and iPad have millions of consumers.
Analysts estimated that Apple’s earnings growth rate for the current year is 8.8%. According to the Zacks Consensus Estimate, earnings have improved by 4.9% over the past two months.