While grim, it’s likely major tech firms make it through to the other side. It’s especially true for the newly emerged “stay-at-home” stocks — companies that fit into our new way of living, where social distancing and working from home are standard practice. [Read: Every single tech stock in the S&P 500 index got rekt on Monday]
Coronavirus aside, FAANG is sitting on loads of cash
JPMorgan analysts floated streaming monster Spotify, e-cycling startup Peloton, and social marketplace Ebay as other potential benefactors; e-commerce and subscription-based businesses were said to be “bright spots” in the COVID-19 consumer landscape. Chinese tech powerhouse Tencent also recently said it expects its gaming businesses would allow it to weather the economic slowdowns brought on by the spread of COVID-19. As for iPhone maker Apple, it sits on nearly $100 billion in cash reserves, which Financial Times noted is enough to fund its entire R&D and capital spending budgets for nearly four years, even if sales dried up completely.
