Tuesday , July 27 2021

Stock market rally: Amazon, Microsoft and other companies in Seattle are recovering from the lows in March

(Google chart)

US stocks have returned, although millions of people are still unemployed due to pandemic layoffs and the risk of COVID-19 lurking.

The S&P 500 gained more than 1% on Monday as it returned to pre-COVID-19 levels after a massive decline in March due to the global pandemic. The Nasdaq Comopsite Index also showed a similar development and reached a new record high at 9,824 on Monday.

Airlines and energy companies are seeing remarkable rallies. The New York Times noted, as social distance restrictions across the country relax and oil prices normalize.

Tech companies are also contributing to the recovery in equity markets, including Microsoft and Amazon in the Seattle region, whose stocks are reaching record highs.

The Microsoft share has risen by around 40% since the end of March as the boom in productivity, cloud and collaboration software drives the company up. The shares reached $ 188.36 on Monday and were approaching a record price set in February.

(Google chart)

Amazon has seen a 50% increase in stocks since March 12. The e-commerce giant has become a lifeline for customers seeking protection at home during the pandemic. RBC Capital Markets raised its 12-month target on Amazon stocks on Monday from its previous estimate of $ 2,700 to $ 3,300. Shares rose about 25% this year, hitting an all-time high of $ 2,511 on Monday.

(Google chart)

The shares of the travel giant Expedia are also rising steadily after the crash in February and March. The company's shares have doubled since March 18 and have risen 40% this month, even though questions about the future of travel are popping up.

Why this tech investor believes a recession in the Seattle region could actually help

The real estate market appears to be get away pretty unscathed of the pandemic, which is good news for Zillow Group and Redfin investors. Both stocks have tripled since their lows in March.

Other companies in the Seattle region that are growing stocks are Adaptive Biotechnologies (130%); Impinj (123%); Avalara (70%); Smartsheet (40%); and T-Mobile (40%).

Already long-time investor and CEO of Code.org in February Hadi Partovi said Seattle could be ahead of other metropolitan areas if economic activity declined. His logic was that recessions hurt all companies, but those most affected are those with unprofitable business models or fluctuating balance sheets. Microsoft and Amazon are certain to weather the COVID-19 storm and could emerge from the economic crisis stronger than ever.

"In a recessive environment, Amazon would be way ahead of its competitors at the end of this recession," said Partovi, former Microsoft manager and founder of iLike. “Nobody wants it at the front end. But who survived the best three years later? "

About Corrie Donnelly

Corrie Donnelly is a computer engineer originally born in Germany. He was writing articles about technology and computer games for websites.

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