The major stock-market indices have recently been in correction mode, with the major tech stocks witnessing a heavy sell-off. The tech-heavy Nasdaq has sunk close to 10% through Friday since September 2nd, after gaining more than 70% since its March low. Rather than an indication of another market crash, this correction is seen as…
Stocks in the technology sector have mainly borne the brunt of this correction. However, instead of taking this correction as a sign of weakness in the tech sector, this may provide a good opportunity for investors to enter the sector at more reasonable prices.
Technology stocks have been driving the US stock market since the start of the coronavirus pandemic, and there is no reason they shouldn’t do the same going forward. The demand for technology-oriented products is increasing and a widespread digital transformation is underway.
Amazon.com, Inc. (AMZN)
Shares of AMZN have been performing exceptionally well so far this year. The stock has largely gained due to its e-commerce business, which has seen growth in demand due to the spread of the coronavirus and the resultant lockdowns.
AMZN’s cloud computing platform is also in high demand due to digital transformation and more companies shifting their operations to the cloud. AMZN’s stock has delivered a year-to-date price return of 68.6% so far.
The company has recently received approval for the use of drones as part of their delivery operations. This move could help the company make faster deliveries in a more cost-effective manner. The company has also unveiled its Whole foods e-commerce store. As more and more people are looking to do their entire shopping online, AMZN’s online grocery store could not have come at a better time.
AMZN is expected to see a rise in revenue of…