Zoom’s share price could also be impacted as more people return to offices, but this is expected to be a slow process, with remote working still likely to dominate in the months ahead.ĭemand for its software is likely to remain solid, and Zoom has also developed new hardware as a service model, allowing users to lease Zoom-branded desk phones and headsets. Firms like Apple which sell expensive premium products could be hit by a longer than expected recession which could have serious implications for profits.” Zoom looks to virtual meeting supremacy “But perhaps the biggest immediate threat, which is not just exclusive to the tech sector, is the deepest depression since at least the Second World War. But an escalation of the US-China trade war could have a contagion effect on the likes of Apple who rely on parts made in China,” Wild says. In fact, the enforced coronavirus lockdown has played to the hands of the biggest technology players. “The COVID-19 pandemic has failed to take a bite out of the FAANG stocks. Ong has lifted his price target to $400, while also raising his annual revenue estimates by 2%,MarketWatchreports.īut Lee Wild, head of equity strategy at Interactive Investor, tells Opto he sees some grey clouds ahead for tech stocks. The company has seen continued, strong demand for its tech with a “firming outlook” for its upcoming iPhone 12. Apple’s share price is still a sure betĪpple’s share price should also continue on an upward trend for the rest of the year according to Jeriel Ong, an analyst at Deutsche Bank. That said, he warns that some long-term concerns remain, chiefly around profits in China, poor fundamentals for the auto industry, and the “inevitable” competition in electric and autonomous vehicles from Amazon, Apple, and Alphabet. “Tesla has demonstrated one very powerful differentiating quality versus many of its auto peers: demand is holding up better,” Jonas told MarketWatch. “With electric vehicle penetration shy of 1% in the US and roughly 2% globally, there's clearly more to go for,” he wrote in a recent article.ĭan Ives, analyst at Wedbush, also sees a “bull-case scenario” for Tesla’s stock according to MarketWatch.He has a price target of $1,250 but expects the stock to reach as high as $2,000.Īdam Jonas from Morgan Stanley highlighted strong second-quarter production and delivery numbers. Pollution-free skies during the lockdown period are likely to prompt more consumers to choose electric. Richard Hunter, head of markets at Interactive Investor, is confident Tesla’s share price can go higher. Tesla set to surge on environmental focus Will the first half’s winners maintain their form for the rest of the year? The first half of 2020’s top five performing stocks in the blue-chip index were DexCom, Regeneron Pharmaceuticals, Nvidia, PayPal and West Pharmaceutical Services, according to Fortune.Īs society and the economy slowly find a new normal, the markets have begun to stabilise. Only 135 of S&P 500 companies saw their share prices increase for the first half overall compared to the 451 stocks that rose in the second quarter, according to MarketWatch. These three stocks posted growth in the first six months, but many others did not. This rise saw the stock largely recover from its 13% drop in the first quarter. It rose 73% in the second quarter which, while still impressive, represents a slowdown from the first quarter’s 114% rise.Īpple’s share price led the Dow Jones Industrial Average in the second quarter, gaining 43% to close at $346 on 30 June. Zoom’s share price, meanwhile, was the best performing stock on the Nasdaq-100 for the first half of the year, climbing an incredible 272% to end the half at $253. Shares in the electric car company more than doubled in the second quarter, from $524 to $1,079, and this 106% increase made it the top-performing stock on the Nasdaq-100. Tesla’s share price accelerated through the first half of 2020, rising 158% in the first six months of the year. As the second quarter of 2020 came to a close, it was Apple, Tesla and Zoom Video Communications’ share prices that stood out as some of the best performers in US markets.
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