Data presented by Buy Shares indicates that sampled top six technology stocks had an average return on investment of 352.23%. The ROI was recorded between September 4th, 2015, and September 4th this year.
Amazon records highest ROI
The research sampled the ROI of Amazon, Netflix, Microsoft, Apple, Facebook, and Alphabet. From the research, Amazon had the highest ROI at 560.24%. Elsewhere, Alphabet had the least ROI of 164.86%.
The Amazon stock soared in the wake of the coronavirus pandemic with the demand for e-commerce. Most people turned to online shopping in fear of contracting the virus.
In general, the pandemic has had mixed outcomes for the technology sector. Microsoft performed well with the demand for collaboration software, devices, gaming, and cloud computing services as many people were quarantined.
Streaming giant Netflix also witnessed rapid growth in its user base during the pandemic despite the company temporarily pausing production of all shows. However, platforms like Facebook and Alphabet that rely on advertisements might have seen revenues plunge. Some of the biggest advertisers like the travel industry were among the worst hit by the pandemic.
Buy Shares research also identified factors that will spur the growth of technology stocks in the future. According to the research:
“Moving into the future, factors like slow economic growth, low inflation, and low-interest rates will positively impact technology companies. However, despite favorable conditions, technology stocks are still vulnerable to a short-term correction. With the recent stock market crash due to the pandemic, the tech stocks remained resilient rallying the rest of the market.”
The technology sector is mainly made up of businesses that sell goods and services in electronics, software, computers, artificial intelligence, and other industries related to information technology.
Future investments in technology stocks will likely be driven by emerging trends in the sector. Companies that will put more focus on the cloud, analytics, and digital applications will likely benefit as the trends are taking over.