Zoom stock in january 202011/8/2022 ![]() ![]() But the recovery of these companies has been faster and stronger. Related question: What explains stock market reactions to the pandemic?įigure 1 indicates that the share prices of GAFAM crashed almost as heavily as the rest of the stock market at the beginning of the pandemic (in late February and early March). Importantly, the companies tracked are traded in New York, just like GAFAM. Both provide a big picture view of the state of the stock market as a whole. The Dow Jones Industrial Average (DJIA) tracks the share prices of 30 of the biggest US companies, and the Standard & Poor's 500 Index (S&P 500) tracks 500 large-cap US companies. A comparison with the wider market is provided by two of the leading stock market indices, the values of which are normalised to 1 at the beginning of January 2020. Despite some known limitations, changes in share prices make it possible to survey how different industries have been affected by Covid-19 almost in real time ( Griffith et al, 2020).įigure 1 focuses on the share prices of the five internet giants – Google, Amazon, Facebook, Apple and Microsoft (GAFAM) – and Zoom. The stock market provides some insights into the information technology sector. How have the internet giants coped with the crisis? But not all platforms and digital firms have reacted in the same way, and some of them may be on the brink of failure. Many of these businesses have also been instrumental in supporting most people’s safe access to goods and services, which has increased the pace of digital transformation. ![]() Overall, although with important distinctions, ‘Big Tech’ (the dominant companies in the information technology sector) and digital firms more generally have been coping better than the rest of the economy with this unprecedented crisis, both in the short and medium run. Covid-19 has accelerated the transition to a new age of digital progress, creating opportunities for the widespread and rapid adoption of both new and established platforms. ![]()
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