2023-09-21 16:55:57
Technology companies, often referred to as “tech giants”, are known for their constant innovation, with a significant impact on society. The area is also responsible for investigating how digital platforms and online networks are changing the way people interact, buy, sell and share information.
It is for these reasons that the shares of technology companies always arouse the interest of investors, market analysts and economic experts around the world, after all, the technology market is gaining more and more relevance and setting trends like never before.
After experiencing a great appreciation in the post-pandemic period when shares of Apple, Microsoft and Amazon, among others, reached their highest value in the last 5 years, technology companies began to experience a devaluation during the year 2022. During this period, Apple shares, for example, fell by 31 .78% between December 21 and the same month of 2022, in one year, when it closed under $130 in 18 months.
A new investment panorama
But in 2023, technology company stocks began to recover and began to attract investor focus and attention, outperforming traditional sectors such as manufacturing and services. Advances in technologies such as Artificial Intelligence (AI) and cloud computing have played a crucial role in this growth, making shares in the sector the most desired assets. Only in January of this year, the Big Techs grew the equivalent of 1.37 times the market value of all companies listed on B3, according to a survey carried out by the investment platform TradeMap,
The market value of Apple, Amazon, Meta, Microsoft and Alphabet went from US$6.17 trillion at the end of 2022 to US$7.28 trillion on February 3, 2023, representing a growth of US$ 1.11 trillion in just over a month, against US$810 billion, which is the value of all companies listed on the Brazilian stock exchange.
Another relevant factor in the notable performance of technology stocks in 2023 was the growth of technology companies. VPN, or Virtual Private Network. With increasing concerns regarding data security and privacy and the expansion of remote work, which demands secure connections, companies offering VPN services have experienced a significant increase in their valuation. The financial success of these technology giants has attracted the interest of institutional and retail investors.
Innovations: the driving engine
The good performance of technological stocks can be attributed, in large part, to the sector’s revolutionary innovations. Both startups and technology giants They presented cutting-edge technologies that promise to transform current reality and are always at the forefront of trends.
Space exploration is another highlight responsible for an important appreciation of the shares of some companies. Those who lead the way in innovation often enjoy a privileged position in the stock market as investors recognize the potential of their innovations.
New models and needs
With remote work, which during the pandemic was adopted by around 85% of companies, according to a research by global consultancy Korn Ferry carried out with 170 companies in November 2021 becoming the norm, the technologies that facilitated this transition have become indispensable, increasing the value of the shares of the companies that provide them. Platforms specialized in maintaining business in the remote work culture have experienced a significant increase by capitalizing on demand driven by market realities.
A surprise in this scenario was the emergence of climate technology companies that use AI devices and IoT to provide real-time air quality monitoring, indicating a shift by investors towards sustainable and climate-conscious technology solutions.
About bubbles and fixes
While the performance of technology stocks paints an optimistic picture, it is crucial to consider the market’s track record. There are reservations about the existence of overheating, which brings to mind concerns about speculative bubbles, similar to the internet bubble in the early 2000s.
The market is showing signs of maturity, with periodic corrections that serve to keep speculation under control. These corrections are a reminder that while technology companies can offer substantial innovation and growth, they are also subject to challenges. The dynamic nature of the technology industry means that there will always be new trends and demands to explore, which helps the market adapt and evolve over time.
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