With the world in disarray and more people deciding to stay at home and use the World Wide Web for entertainment, the wires of the internet have never been busier! On top of this, businesses are getting used to giving their workers remote access and tasks, so their employees can work from home. This new dawn of an era has meant software sales online have skyrocketed – it has also meant that stocks in tech firms such as Google have seen a marked increase in value!
Could this be the time to invest in software and tech companies?
All we need to do is look at one of the biggest software development firms in the world to find a clue to the answer to the above question. Google’s stock moved positively from $1054 in mid-March to over $1,500 over the past 6 months. That’s a huge increase of 50% of March 2020’s stock price. Google’s 52-week low was $1,008 and its 52-week high is $1,587 which came in July 2020.
Another company that has shown great promise over the last 6 months is AMD – Advanced Micro Devices Inc. This is a company that primarily produces processors for laptops and desktops. As so many people have found themselves working from home while lockdowns hit the globe, the need for a new computer to be able to work from home and the rise in laptop sales for business purposes has meant AMD has seen a steady increase in its stock value.
In March stocks were just $39 a share while today the price of AMD stock has more than doubled. Worth $79. Now in terms of the AMD stock value, each one is only a fraction of Google’s, but when you look at the percentile rise, we are talking about a 100%+ rise in value.
VPN Sales Soar in 2020
Another market that has seen huge rises in sales is the virtual private network (VPN) software sector. In Europe and countries such as the US where movie streaming sites and torrents could result in your (Internet Service Provider (ISP) handing out a ban for using torrent software, VPNs are the answer. Torrent sites are busier than ever as people use VPN software to mask their identity by connecting to a country that does not ban the use of torrents.
It stands to reason why people would be taking this route too. Torrents offer free movie and music entertainment using a seed sharing system. In the face of job losses, lack of employment for many, and the stark possibility of a global recession on the horizon, people are more frugal than ever. They do not want to purchase movies online when for a small monthly fee, they can subscribe to a VPN service and download unlimited amounts of entertainment for free.
Another tech area that should grow is cryptos – especially tech-related crypto firms. As global economies reach a cooling point, business closures in services sectors start to hit, and bank debts are not repaid, it seems inevitable that the value of global currencies will decline verus crypto.
Another factor that will influence the depreciation of global currencies is emergency government packages designed to stimulate economies. If governments decide to issue more bonds instead of borrowing from other countries or corporations, this could mean more physical cash will go into circulation which will devalue these currencies in the long run.
Cryptocurrencies should end up seeing a marked increase in value as demand rises. This is especially true of cryptos that will not issue more virtual coins or tokens once their surplus has been reached which will happen to cryptos like BTC once all 22 million bitcoins available have been mined. While fiat currency depreciates, the value of crypto versus these currencies should increase.
In addition to this, the demand for crypto is increasing as more people stay at home and start to introduce themselves to the world of crypto. Now people are online more than ever, they are becoming more tech-savvy, exposing themselves to online news, and their understanding of crypto is increasing. This demand will see a rise as the laws and logic of ‘demand & supply’ will affect the value of many cryptocurrencies.
Of course, a large number of cryptocurrency firms are already designing software solutions. As the world populations are forced to increasingly depend on internet connectivity blockchain tech solutions will see their demand increase. This can only mean that we will see more successful blockchain tech firms rise through the ranks, and those that have a virtual currency tied to their business success will increase in value.
We are in a new era and one that is unknown. What we can say for certain is that if all else fails, we can survive at home as long as we have internet connectivity. Businesses that never imagined they would need for their employees to work from home have now created a virtual workforce and made it compulsory for employees to work from home at least a couple of days a week.
The knock-on effect has seen tech companies – especially in the software development field increase in value. On top of this, hardware companies like AMD are benefiting too because people need laptops and PCs to work from home and to connect to the net. Plus, within the world of tech, we also have cryptos which should also benefit as more people are forced to become more tech-savvy and rely on the internet.