- Despite the broader market downturn, some tech stocks are thriving amid the COVID-19 pandemic.
- D.A. Davidson wrote in a note this week that the two dozen tech stocks it covers appreciated 9.6% on average since February 19, when the COVID-19 outbreak started to make headways in the US.
- Among the tech stocks D.A. Davidson follows, the following 14 companies are trading higher than it did on February 19.
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While the coronavirus-led recession is driving a stock market downturn, some tech companies are bucking the trend — drawing more interest from investors during the pandemic.
In fact, as of Friday’s closing, a bucket of more than two dozen tech stocks covered by investment firm D.A. Davidson has appreciated 9.6% on average (compared to the Nasdaq’s 7.1% drop) since February 19, when the coronavirus outbreak started to make serious headway into the US, according to a note published on Sunday.
“We are closely monitoring the coronavirus, which has the potential to disrupt the operating performance of our covered Consumer Technology companies,” the note said.
Among those two dozen stocks, 14 of them are trading higher than they did at market close of February 19, D.A. Davidson wrote.
Those companies, mostly in the e-commerce space, are thriving as more people shop online to avoid physical stores during COVID-19. Some companies, like Roku, are taking advantage of the surge in video streaming as more time is spent at home watching TV.
Here’s a list of the 14 companies and how D.A. Davidson rates the stock:
Amazon (AMZN): Well positioned; “Hiring 100K and adjusting products in its fulfillment centers to meet consumers’ demands for necessities”
ChannelAdvisor (ECOM): Relatively well positioned; “Amazon is the largest marketplace on its platform”
eBay (EBAY): At risk; “Consider most of its products to be discretionary”
Etsy (ETSY): At risk; “Consider most of its products to be discretionary”
FitBit (FIT): Best positioned; “In the process of being acquired by Google”
Livexlive Media (LIVX): Well positioned; “Expect musicians to lean into its broadcast efforts with festivals canceled”
Logitech (LOGI): Best positioned; “Video collaboration sales should be strong with employees working remotely”
Lovesac (LOVE): At significant risk; “Showrooms temporarily closed”
Overstock (OSTK): At significant risk; “Sells discretionary products”
Park City Group (PCYG): Well positioned; “Coronavirus drives awareness of its food safety and supply-chain related efforts”
Roku (ROKU): Best positioned; “Expect increase in video consumption with consumers spending more time at home”
Shopify (SHOP): At risk; “Failure rate of small businesses may increase during turmoil”
Turtle Beach Corp. (HEAR): Relatively well positioned; “More consumers may lean into gaming during outbreak”
Wayfair (W): At significant risk; “Sells discretionary products”
SEE ALSO: Shopify’s CEO says his team had to ‘delete’ all existing plans amid COVID-19 because the future of retail just arrived 10 years early
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